New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-12-12
THE ERIE WAR.
THE SUIT OF THE ERIE DIRECTORS AGAINST c.
VANDERBILr-FORMAL COMPLAINT FOR THE

/ THE SUIT OF THE ERIE DIRECTORS AGAINST c.
/ VANDERBILT FORMAL COMPLAINT FOR THE
] RECOVERY OF FOUR AND A HALF MILLIONS.
/ SUPREME COURT, CRY AND COUNTY OF NEW
loak-Ihe Ene Railway COMPANY paus AT Cornelius |aaqeT
summoned and repaired the complaint this acton Of which
COPY !. s,'e Pn yCo a %. 't b g NY u ! p
Nvlors CITY within t"er dAys % the eryee hereof exclusive Of
plaintiff viii apply Court for
D' '''' '-''1 FIELD SHE1EIAS Pisatfs AtioisSs
SUPREME COURT. CITY AND COUNTY OF NEw-NoRk-
The Erie Railway Company, plaintiff agt cornelius van
derbit. defendant The Erie Railway Company, plain
! tilt. complains and alleges:
commenced against this plaintiff and certain OF IT'S
officers, in which the compainants alleged various acts
the part Of Daniel Drew the then Treasurer Of this
plaintiff, which the sand complainant asserted to be III
| fraud Of this plaintiff and of It's stockholders.
H. That the said complaints all purported 70 be brought
for the protection Of the stockholders Of this plaintiff az
but Only for such relief it therein claimed would
be for the advantage Of this plaintiff -. -,
III. That the defendant herein not n party or
record IN any OF the said actions and publicly denied tha
he had any interest in or control over them.
" That in July. 1905 compromise or the said actions
effected between John : Edridge, the President Of
this plaintiff and Daniel Drew then its Treasurer the
one part ana Richard Schen and Frank Work, on the
other part Oy when was agreed that the said actions
should be discontinued; that the said scLe should re-
ccive 40 shares and $3.50 from this plaintiffs that
the defendant should be relieved of $1,000 shares OF the
capital stock of this plaintiff IA the manner hereinafter
described, and shoud receive S000O00 and that the d
Ionds of t6e BoSton Hartford and Erie Railroad Com
pany for S5O0OO eighty per cent, and that the plain
tins should pay the interest theron aud indorse
v That on or about the 18th day OF day July lS6s
the CITY Of NewNorl. the said agreement was carried
into effect and In pursuance thereof the officers then
having charge OF the plaintiffs funds acting obedience
orders Of the Directors OF this plaintiff majority
OF whom then under the control OF influence of the
said Eddge and Drew paid caused TO be paid TO the
defendant SoUOOOO cash. and also bonds Of the said
Boston. Hartford and Erie Railroad Company, to the
amount Of sl,25000o belonging to this plaintih,
and Endorsed by the President and Secretary Of this
plaintiff In IT'S name In consideration Of $1,000 shares OF
the plaintiffs own capital stock which were then trans
ferred 10y the defendant 10 the plaintiff; and the SAID
officers in Ike obedience 20 the order OF the said Dlrec
tors a. The same tine ana place pad TO me 2eenqant
tins funds without any lawful, valuable, or sufficient
VI That at the time Of making the compromise afore
said the said Edrdcc President OF the said Boston,
interest therein stakeholder and otherwise and had
great personal advantage 70 gain by disposng Of The said
bonds to this plaintiff ana 10y procuring tAe pHnlH IN
d0rsemeut thereon, and the said Drew largely in-
deoted TO this paiun ana IN one OF the acuos aIoIe-
SAID an lJuhcon Add oee granted ~ tnIs Court re
sfranng the Directors OF this plaintiff from iudOrsnE
any OF the said bonds and from compromising the claim
Of this plaintiff against the said Drew.
VII That the object and motive OF the said Eldridge
and Drew IN making the compromise aforesaid was 70
said scleu and Work 10 make money for themselves
and al the sad parties intended py the SAID compromise
70 defraud this Ilanuh az Of WlcH was at the tlme 81
the transaction between the plaintiff aud the defendant
as aforesaid well known 10 the defendant
VIII That the defendant at the time OF the tranac-
ton aforesaid between him and the pEuntn' claimed 70
have control over the action Qesald ana over the ,ald
Sche and Work, and induced the sA!d Edrdee ana Drew
10 use their influence with the other Directors OF the
uiouttO c0mpetc the said purchase OF his stock by
promising that the actions Aforesaid Should be dscon-
tnued II such purchase were made.
TX That the plaintiff had 10 authority under its char.
ter TO purchase the said shares Of It's stock, OF
theu nor had u any occasion or use for any Of Them nor
had il any advantage gain from such purchase, ana
the prce uad by aforesaid % the defendant was NJ
least $4,000 more than the defendant could have 90
tanned IN market FOR the said shares, all OF which was
ven known 70 the defendant at tie time OF the said trans
actions.
Thst the bonds which we're given FOR the said shares
are negotiable in FORM and the defendant intends 20 dis
pose OF al OF them % persons VINO Will DC puI-
chasers in good faith and for value
NJ That before the commencement ~ THIS acton inc
plaintiff rendered the defendant 5000 shares ~ s capt
tal stock. and demanded The return from him OF the
money and bonds received by an but ne would not re-
turn the same nor any part thereof.
XII. That the plaintiff l. now ana always mas neen
ready and willing the defendant the 5000
shares aforesaid upon receiving from him the money ana
bonds paid FOR the same:
l. That the defendant be rearained by injunction from
selling otherwise dspOsngOf any OF the bonds or the
BOSTON Hartford, and Ere Railroad Company received
By HIM from the plaintiff -,
. That the defendant be required to deliver TO the
plaintiff the bonds aforesaid.
g. That II the defendant is unable 70 deliver h the
bonds aforesaid he be required 70 give good and sufficient
security for the protection Of tho plaintiff against All
aims of purchasers thereof and also 20 pay % the PLAN
I'D the value OF the bonds not delivered by MN.
l. That the defendant pay 70 the plaintiff the sum OF
s3590CO with interest from the llh day ~ July ls-
FIELD & SHEAEM,N, Plaintiffs Attorneys.
C and COUNTY o. Acc lJr. james ts IT, ben sworn safi1d
IL ore oi o the rut ai that tae foregoing
u.at bis kr0g.g e1ce1t as - iia U~s "lr ore
therein stated rcu Information AID belle. tat aI - f. ilos as
b. be eve it O. be- true. JANEs llsEi !.
SvoIn. Dec 10, 100. before ne SO.