The New York herald., 1921-12-14
Ex-Member of Exchange Is
of Prominent Family and
Son-in-Law of III. r. HOyt.
ALL CHARGES ARE DENIED
Shooting Accident With Old
Pistol, Suppressed by Police,
Was Mystery for a Time.

Judge Augustus N. Hand in the
United States District Court granted
an order yesterday restraining the
trustees Of the property of Thomas H.
rockingham. former member OF the
Stock Exchange. from disposing Of
his property under bankruptcy pro-
ceedings until the status of about
forty investors in the El Salvador SIX
yer Mines Company, Inc, is deter
mined.
The action grew out of an involun-
tary petition in bankruptcy fled on
Monday wherein three of the silver
mine stockholders charged that Froth-
ingham had transferred about $780,
900 in securities and personal prop
erty to his wife and preferred cred
itors. The petitioners set UP that they
had a legitimate claim against the
property. alleging that they were in
duced under false representations to
buy the mining stock, which they de-
clare is valueless.
OF the rockingham interests assert
that the FL Salvador enterprise was
entirely proper and legitimate and
that those who purchased the stock
cannot participate as parties in the
bankruptcy proceeding. This question
Is to be determined before referee to
be named by Judge Hand.
wife Rich Lawyers Daughter.
Mrs. rockingham. who is named In
the papers as having received sub
stantial part OF the securities. Is the
daughter of the late Henry Reese Hoyt,
prominent and wealthy lawyer. who was
a partner In the firm OF DAILY. Hoyt q
Mason. Many of the persons to appear
as Ell Salvador investors are well known.
The creditors ask for an accounting
OF the funds realized from the sale of
Mr.. Frothinghani's stock Exchange seat
for $4,000; of about 100000 from the
sale Of his home at Far Hills. y. j.. and
of securities said to be valued at more
than s1,000.000 which were involved In
the transactions. One OF the articles or
personal property said to have been put
I'D as security for the benefit OF the
creditors Is a pearl necklace valued at
$4,000, which was the property OF Mrs.
rockingham.
Ferris & Ansbacher of 2 Rector street
apps ared for the Salvador mine in
vestors, only three of whom are named
In the bankruptcy petition. They are
Frank ID. Lackey, Harry NJ. Pierce and
James S. Stirling of Wilmington. Del.
fr-i.x 1f oil atl m
are practically Identical. They assert
that fraudulent stock in the mine.
which was worth next to nothing. was
sold to them and that none OF the repre-
sentatIons made to them was true.
Frothingham. as promoter of the mine.
sold the stock to them, they state. and
therefore they seek to recover their In
vestment
I.ackey bought 10000 shares of the
stock at 81 share from FrothtnBham.
the petition states. and although the
$4,000 was paid the stock was not de-
liyered. Mr.. Lackey states that the
representations regarding the mine were
false and known to be false" at the time
the sale was made. Pierce purchased
5000 shares at 81 a share and Stirling
paid $3.50 for 1000 shares. the papers
set forth.
Partner In brokerage Firm.
F'rothingham was a partner IN the
brokerage firm of Potter Brothers Co.
Counsel for the petitioners set up that
more than s2.oo0.o 900 I'm securities were
put up by relatives Of the broker when
he had finapcial troubles. II Is now
asserted that the bankruptcy proceeding
seeks TO protect THESE relatives and tiose
who claim right TO share In the settle
r1ent are demanding to know what be-
came OF all Of the money involved.
Peter n. Olney has been narned referee
to hear the evidence presented by the
three claimants who filed the involun-
tary petition. The hearing was set for
this forenoon. but will be postponed In
view of the action before Judge Hand.
George A. Ferris. lawyer. and his as
sociate counsel have made an tnvestiga-
lion of the Salvador mine. the stock sales
IN connection with its promotion and the
investments made by at least forty In
vestorg who now cry fraud. They assert
that the mine was not legitimate prop
erty for promotion when the $l,00o.0 900
worth Of stock was put out by Frothing-
ham and declare they are prepared TO
prove the transaction was based on
fraud.
In October, 1921. when he was insolv-
inghani paid 70 Potter Bros. & co. the
sum OF s4sf.945 ito prefer them over
other creditors OF the same class" At
the same time, IL Is charged, Frothing-
ham made an assignment for the benefit
OF creditors TO William r. Perkins and
Charles Il. Caldwell as trustees for the
preferred creditors.
Property Transfers Disputed.
Within four months thereafter and
while still insolvent. II Is further
charged, rockingham transferred prac-
tically all his property and assets
valued at more than s1,oo0.000 to the
trustees under deed or trust. whereby
they were to pay the proceeds TO A. Nj.
Continued on Page Four.
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