The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-12


suit Against Cornelius Vanderbilt for tho Re-
covery Of Four and a Half Millions Of Dol.
lars-Settling Up Old Grudges.
The following is the complaint OF the Erie RAILWAY
Company against Cornelius Vanderbilt, which, hay
ing been threatened for the past two weeks has
been served upon the defendant and makes ono
more tange In the already Gordian knot Of Erie
Railway anairs:-
The Erie RGGltc0y Company, Plaintiff Us. Cor
neli,ts Vanderbilt, Defenddat.-The Erie Railway
Company, plaintiff, complains and aeges:-
FHst-That In February and March, 1885, several
actions were commenced against this plaintih and
certain Of its officers, In which the c0mplainants
alleged various acts on the part OF officers OF this
plaintiff, ana particularly on the part OF Daniel
drew, the then treasurer OF this plaintiff which the
said compliments asserted to be in fraud Of this
plaintiff and Of It's stockholders.
Second.That the said complaints all purported to
be brought for the protection OF the stockholders OF
this plaintiff, az SUCH and prayed for no damages
against the plaintiff but only for such relief II
therein GAINED would be Tor the advantage OF the
plaintiff.
Thiyu-That the defendant herein was not party
Of record IN any OF the said actions and publicly
denied that he had any interest in or control over
them.
Fourth-That in July, 1868. compromise Of the
said actions was effected between John ). Eldrdge.
the president Of this plaintiff and Daniel Drew, then
Its treasurer, on the one part, and Richard Schell
and Frank Work. on the other part, by which it was
that the said Schell should receive 429 shares and
$3.50 or more from this PLAINTIFF that the defendant
stock OF this plaintiff in the hereinafter de-
scribed, and should receive 81 000 00O and that the
directors OF this plantT should purchase for its
count bonds OF the Boston, Hartford and Erie Rail-
road Company for $1,000 0OO at eighty per cent. and
that the plaintiff should pay the interest thereon
Flfth-That on or about the nth day Of July, 1853,
at the city OF New York. the said agreement was car
ried into effect and IN pursuance thereof the officers
then having charge OF the pantu's funds, acting in
obedience to the orders or the directors Of this plain
tiff majority Of whom were then under the con-
troll influence Of the said Edridgc and Drew. paid
caused to be paid 10 the defendant 81, 900 in
cash. and also bonds OF the said Boston, Hartford and
Erie Railroad Company 10 the amount OF S1,250o00
belonging Us this Plaintiff ana endorsed by the Pres
dent and Secretary OF this plaintiff in Its name, In
consideration OF so, 900 shares Of the plaintiffs own
capital stock, which were then transferred by the de-
PENDANT to the plaintiff; and the said officers in like
obedience To the order OF the said directors, ut the
same time aud place, paid to the defendant the ad-
ditona sum Of 81 600 900 In cash out OF this plain
trs funds without any lawful, valuable or sufficient
consideration.
.SirtI,- That at the time OF making the compromise
aforesaid the said Eldridge was president OF the
said Boston, Hartford and Erie Railroad Company
and had large interest therein stakeholder and
Otherwise and had great personal advantage to gain
by dlsposng OF the said bonds to this plaintiff and
by procuring the plaintiffs endorsement thereon and
the said Drew largely indebted to this plaintiff;
and In one OF the actions aforesaid injunction had
been granted by this court restraining the directors
of this plaintiff from endorsing any oil the said bonds
and from compromising the claim OF this plaintiff
against the said Drew.
Srenth-That the object and motive OF the said
said was to put an end to the said injunction and the
object OF the said Schell and Work was to mako
money for themselves, and all the said parties In
tn all OF which was ~ the time OF the transaction
betweenfhe plantf and the defendant as aforesaid,
well known to the defendant.
Eghth--That the defendant, at the time OF the
transaction aforesaid between him and the plaintiff.
claimed to have control over the actions aforesaid
and over the said Schel and Work, and induced the
said Edridge and Drew to use their influence with
the other directors OF the plaintiff to complete the
nha1n nF 90 afnnlr
actions aforesaid should be discontinued II such pur
chase were made.
Nint.-That the plaintiff had no authority under
it, charter to purchase the said shares OF It's own
stock, any Of them had II any occasion or use
for any OF them, nor had II any advantage 10 gain
from such purchase. and the price paid by " as
aforesaid to the defendant was at least 100000
more than the defendant could have obtained IN the
market for the SAID shares, all Of which was we'll
known the defendant at the time OF the said trans
actions.
said shares are negotiable in FORM and the defend
ant intends to dispose OF some or all OF them TO per-
sons who viii be purchasers In good faith and for
value
Eierept,--That before the commencement OF this
action the plant rendered TO the defendant so. 600
shares OF is capital stock and demanded the return
from him OF the money and bonds received by him,
but he would not return the same nor any part
thereof.
7treinh--That the plaintiff Il now and always has
been ready end willing to return to the defendant
the so 900 shares Aforesaid upon receiving from him
the money and bonds paid for the same:-
Wherefore the plaintiI demands judgment.
|. That thc defendant be restrained by Injunction
from selling or otherwise dlsposng OF any Of Tue
bonds or the Boston, Hartford and Erie Railroad
Company received by him from the plaintiff.
2. THAT the defendant be required to deliver 70 tho
plaintiff the bonds aforesaid.
3. That n the defendant Ii unable to deliver al inc
bonds aforesaid he be required TO give good anu SUE
ncieni security for the protection oil tne Pla,hun
against all claims OF purchasers thereon ana also 70
paw TO the plaintiff the value OF the bonds not de-
vered by him.
4. That the defendant pay 10 the plaintiff the sum
OF sb0O0o0 VITA interest from the lltn day OF JuV,
1865. YIELD SHEAhMAN,
Plaintiffs Attorneys.
tWV AMI f0Untg ~ Ne,r TOt'k.--James FISK. 1T,
being sworn saya that be IL one OF the Directors OF
the plaintiff aud that the foregoing complaint Is true
OF hs own knowledge, except as 10 the matters
which are therein stated upon information and te-
lief and that ~ 80 those matterslhc believes u 70 10
true JAMES FISH ".
sworn December 10. 1868, before me-MoRrtMER
GAflrIi Notary pnhlic. NnX YORK.