The New York herald., 1921-08-18
BIG MEN ACCUSED
OF FALSE PRETENCE
Conti-">1 from First Page.

for seeking the stock flotation. accord
ing to the complaint. was that the cor
poration wished to buy an interest In
the Colombia Products Corporation and
TO buy two oil burning refrigerator
ships They said the saving in Freight
charges In five to seven years would re-
pay the cost of the vessels. estimated at
81. o2O. 900, the complaint alleges.
All these representations, the plain
tiffs assert. were made In August, 1919.
and resulted In the plaintiffs contract
ing TO purchase stocks, beginning with
10000 shares OF preferred in October.
1919. Purchases continued until May.
1920, by which time the plaintiffs had
acquired $4,000 preferred and 22.S00
common shares. at a total cost Of
s1.440. 900.
BY that time, though, 1t Is alleged,
the plaintiffs discovered the falsity Of
the representations, and also learned
that lot of things had been concealed
from them. Among the hidden details,
they allege. were that the defendant cor
poration had been issuing lot OF its
stock to Its officials for services rem
dered" and had largely overvalued" the
services; that In purchasing property
and land In Paraguay the same had
been largely overvalued, and that a
large part Of It was purchased from
some OF the Individual defendants. "at
great profit to. said defendants"; that
negotiations for the purchase OF the re-
frigerator ships had been carried on in
part through the issue of s636.0oO in
bonds of the International Products
Steamship Company. subsidiary of the
defendant corporation, and had thereby
largely increased the Indebtedness Of the
defendant corporation.
Demand was then made, 1t Is alleged,
for the cancellation OF the contract
whereby the bankers agreed to buy the
stocks and for the return of the pur-
chase price. but no relief was had. Sea-
bury. Massey Il Lowe appear as attor-
neys for the bankers
The defendant corporations interest In
investing s1.25o.o00 in Central Products
Corporation was due to the fact that the
latter body owned valuable concessions
from the Paraguay Government for the
erection OF the packing plant at Asun-
cion. The Colombia Products Corpora
ton, in which 1t desired to purchase an
interest. owns a similar cattle raising
and packing house project In Colombia.
The International Products Company
itself Is subsidiary of the far greater
American International Corporation of
120 Broadway. which Is engaged in de-
velopment activities throughout the
world and which includes among it's di-
rectors Frank A. vanderlip. Otto II.
Kahn, Newcomb Carlton, P. A. S. Frank
lin. John D. Ryan. Albert H. Wiggin,
James A. Stillman, Ambrose Mcneil,
Percy A. Rockefeller, c. A. Stone, Guy
e. Trtpp. Robert f. Herrick, 10. s. Web
ster and Pierre 8. DUPONT
The officers or the International Prod
ucts Corporation are William M. Bald
win. chairman of the board: Messrs
Sulzberger and Farquhar, vice-presi-
dents; Mr.. Stevens, treasurer; Mr.. Olney.
secretary; w. NJ. Baldwins other affilia-
| tions include directorates In the Catalytic
Chemical Company, tho Seaman Waste
Wood Chemical Company and the United
Dyewood Company George ]. Baldwin
Is senior vice-president OF the parent
company. the American International
Corporation. and a director in its other
subsidiaries. Mr.. Keith is vice-president
Of the United Fruit Company. president
Of the Continuous Rail Company and a
director In number OF Latin-American
enterprises.
Mr.. Olney is head OF George II. Olney
& Co., machinery manufacturers Mr..
Farquhar Is president of the Port of
Para, Inc. Mr.. Henry Is a vice-presi-
dent of the American International Cor
po-ation. a trustee of the Rensselaer,
| Polytechnic Institute and of the United
States Savings Bank of the City OF New
York. besides being an officer in various
Latin American ventures. Mr.. Stevens
Is a director In many of the same COM
panies as w. M. Baldwin. Mr.. Streeter
Is also vice-president OF the American
international Corporation and a director
Of @. Amsinck & Co., Of Mexico, a SUB
| siidiary.
Edward ]. Berwind Is a director Of
about fifty corporations, including coal
companies, railroads and steamship
lines. Mr.. Chipp Is treasurer and direc-
tor of half dozen companies engaged
In railroad and building construction
and brokerage businesses In South
American countries.
The International Products Company
was Incorporated In Maryland In 1915
with q capitalization of s6.000.0 900. The
parent company was Incorporated In
New York in 1915 with a capital of
| S5o.00o.0o0. With Its associated COM
panies 1t has 113 branch offices and 125
agencies I'm all parts of the world