New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1859-05-07
La w INIELLG EIVUlE.
A TWO MILLION DOLLAR SUIT.
THE ACCESSORY TRANSIT COMPANY AGAINST
COMMODORE VANDERBILT.


COMMODORE VANDERBILT.
SUPREME COURT-Gr>ER,L TEsM-M,y 6-Beforr Jgdsss
ROOSEVELT NGRAHAN aud PRATT.
David Golden Murray Receiver OF the Accessory Transit Com
paBy. ag; Cor Ieu. Vanderbilt;
This case involves claim against the defendant to
the amount of s. COO coo, and is sequel to the
Old difficulties Of the Accessory Transit Company.
The complaint which is very yoluninous, covering
over one hundred ioloS first rectes the various suite
which have heretofore been commenced against the
Accessory Transit Company, the recovery OF juig.
meuts return of the executions unsatisfed, and tho
subsequent appointment of the p'aotf in this suit
David Golden Murray-Receiver OF the Company.
II then sets forth that prior TO lSJb, the Company
was engaged IN profitable business in transporting
and conveying passengers, tregs and mails bet seen
New.York and San Francisco, by the way Of the
Isthmus Of Nicaragua; also, between New'0resns
ard San Francisco by the route That the
Company owned the steamers Northern Light, Star
of the West Prometheus, and Daniel Webster, which
sailed on the Atlantic Ocean anc Gulf Of Mexico; and
the Brother Jonathan, Uncle SAM aud Pacidc, which
sailed on the Pacific Occsn. That the Northern
Light. Star If the West, Daniel Webster Prone
the us, Brother Jonathan, Uncle Sam, aud Pacific.
With a steamer named the ). s. Lewis, were pur-
chased of the defendant, Nj. Vanderbilt, in January,
1853 for 81, $50 600.
In June, 1853, the steamer Cortez was purchased
for $5 Geo, to supply the place Of the g. ). Lewis.
which was lost. Considerable money was expended
in repairing aud Improving the steamers, and Ia Jan.
uary 1856 they estimated to have cost 81 3d..
Geo, At tbis time the eLtre property Of the Company
was estimated to he worth 81, 100000, and the
debts were estimated at $550000.
On the 81 of January, 1856, Cornell Vanderbilt
was appointed the general agent, aud on the 30th OF
January he elected aud continues 70 be the Pres
idot Of the Company. On the 18th of February 1885,
Patiici0 Rivas who claimed to be the President of
the State of Nicaragua, issued decree under which
the property of the Company on the I,hmus was
taken, ana from that time forth the Company has
been practically deprived of its transit route through
Nicaragua. On the Eth Of March following, Mr..
Vanderbilt invested by the Company with further
inl powers To conduct such negotiations and to do
such in his Judgment might bo necessary to
ricatc the Company from its difficulties, and to restore
il to It's rights that he then assumed to be, and in
Oct, the sole manager AMI iduclaTy agent trustee
ol the Company, aud was, IN law AMI equity bound to
do all such acts and things as were necessary and
proper to protect and preserve all it, property aat
rehts and In all RESPECTS to conduct its affairs for the
bet interests If liz creditors aud stOckhollers.
Acting under ths power he made scontract With the
fs"ihc Mail Steamship Company aud the United States
Mai. Steamship Company, that, 50 hong as 40 line
shuuld be run between NeW-Yik aud San francisco
by the Transit Company, in opposition to the Pacific
ale puted States Nal Steamship Companies the
latter Compare. would Day the Accessory Tfaust
Company the sum of so 600 noah, viz: $40 V0J for
ench TIP from Newioik Ia San truDcsco, shl SiV,Vvo
from san Frhnci-co 70 New-iork, there bei1z lrQ
monthly trip made between those cities. Plaintiff
GI'ses thai, from the limo Of tbs agreement the
u oril Is payments were ec.iycd by Vanderbilt ald
tL9t the gross sum 50 Received amounts to over
81 ,<M 600, that during Marc, April and May, 1896,
Vanderbilt paid "a the Transit ,Unpa0ythe full sun VI
a. OOs myuth, receiving commission thereon At the
Iaie If - per cent. But the plaintiff complains That
Vanderbilt 10 violation of the trust aud confidence
epust la him. accounted Tor or PAID osefio the
Con pnny the plaintiff, its receiver. any other or
further rum Of the DOneys received by bin. II -
further alleged that Vanderbilt rce yed other large
suu- fl money for freight asi passag, money, for the
Proceeds # Goals, coal buiks, aud other property sold
at San Franc,co kew-Oreans aud New. York, moneys
ped over by agents aud debtors Of the Company,
which be has refused 10 account for.
That shortly after the time If making the contract
defendant continued a scheme Of hegahty, disesuDg
he Company If all its property and r,hts, ani vi AZ
luirilg the same iOr biz and benefit, by OBJ
aiming hens and mortgages and transfers Oi injebtei-
aess real ~ pretended. and asserting AMI enforcing
such eus mortgages All transisrs, aud can.lns Orccd
sales hereunder and fictitious and pretended sales and
transfers NJ runOus rates, when there was nothing or
yeIy much ess than the amount Of sad hsns or mort
"a gcs due by the Company Or when he, defendant,
bad or ought to have had 10 bis own hands sufficient
money belonging 10 the Company 10 pay OF ssii in-
iehtedDess. That. in pursuance Of tins hsninlent
pan. defendant assumed the active management Of,
and the entire dominion and unlimited control over all
the properly Of the Company, governed aud controlled
lee Company As he pleased and shsped, dictated and
every net " the Company, until
L was stripped Of all ia property.
That deie1dant Mingled ell the money and property
# the Company With his O@n never keeping any sep
srstr bank acconut for the Company, but deposting
ii ell times the moneys Of the Company in hls own
name mingliug Il Ia bis bank account with his own
money! That the Indebtedness Of the Company con
sisted in part II Two mortgages upon the eteanships
Norherr Light and Star Of the West, 10 secure the
payIneut Of l20 bonds Of the Company Of 81 900 each,
which bonds with the exception OF two, the detenisnr
purchased Of the holders thus obtaining control Of tho
boufs and the mortgages 10 secure the same That the
COMPANY maze anOther mortgage upon the Daniel
Webster Ia secure the payment Of ten bonds Of the
Company Of $500 each; another upon the steamer
Uncle sam, TO the payment OF - like bonds OF
Is 60 eech all Of which bonds were pure aased Oy
the defendant a, the rate Of 30 per cent by giyngu
credit for ALLEGED sniecedent indebtedness al that rate
That at the time of the seizure of the property OF the
Company il was 10 such condition thai sll It's m
debtedDess might have been paid OF III few non,ns
out Of the monthly payments but tia; instead o. APP
plying the payments 10 that manner, defendant fasey
pretended that the Company was embarrassed and
without means AID needing further osns snd pre-
'ruded 20 make alvauce- 20 the Company, ana took
~ 70 ay aad frauinslt mortgages ani s;caritiesto
F! 81. Il. property. TIA. fsn'ia1t eadssi Ia os
.. .. .xreute Z" himself rrs-sJ 81 ''asilei mort
.i tue s.cggg.s, cat, ~ - "d"h nc p*iH"m