1905-02-21-New York Times-Threat To Expose Ship Deal
New York Times
21 February 1905, page 14
THREAT TO EXPOSE SHIP DEAL
Mrs. Wood's $220,000 Suit Against Trust Promoters Up for Trial.
A case involving a decision of the courts upon the methods of promotion used in launching the Shipbuilding Trust will come before Justice Garretson in the Supreme Court at Mineola, L. I. He will decide whether the suit of Ida E. Wood against the Commonwealth Trust Company, formerly the Trust Company of the Republic, shall go before a jury at the present term or wait until June. Body attachments will be asked for John W. Young, a promoter, and Alvin W. Krech, President of the Equitable Trust Company, and formerly Vice President of the Mercantile Trust Company, who failed to respond to subpoenas yesterday.
Mrs. Wood is the widow of Benjamin Wood, who once owned The Daily News. She seeks to recover $220,000, alleging fraudulent representations in the prospectus.
Mrs. Wood, on the sale of The Daily News to Frank A. Munsey, received $450,000, it was reported, but her counsel said that her investment in the Shipbuilding securities represented all she had. In June, 1902,the complaint says, Mrs. Wood saw an advertisement in a newspaper which prompted her to send for a prospectus of the United States Shipbuilding Company, which held forth such inducements, subsequently proved to be fraudulent and deceitful, that she went to the Trust Company of the Republic and paid $195,000 for 200 first mortgage 5 per cent gold bonds of the Shipbuilding Trust. She sues for this amount and interest.
When the case was called on trial calendar yesterday, many of the counsel argued on its legal complications and technicalities. It was contended that the suit would sidetrack everything on the calendar and that at the least it would take three weeks. It was further maintained by the defense that the case should not be heard before a decision on the appeal from the decision of Justice Kelly against the demurrer of certain of the defendants was rendered.
