New-York tribune., 1873-01-03
ERIE TO SUE VANDERBILT.

THE NEW DIRECTORY VIGOROUSLY PRESSING AN
OLD SUIT FOR FOUR AND A HALF MILLIONS
| SKETCH OF THE PROCEEDINGS AND OUT
LINE OF THE COMPLAINT.
The present Erie administration having sue
ceeded so well with Jay Gould in the transfer OF money
and securities held by him President of the Erie Rail-
way Company TO the amount OF S9,5OOOOO is about 10
turn its attention las limited days ago in THE
TRIBUNE) to Commodore Vanderbilt and see what it
can 10 compelling him to refund all or portion
OF the money alleged to have been wrOngfuy obtained
by him from the Company.
The suit was begun time ago, but has suffered
from the usual delays the law and has dropped out
of public notice. Ii was begun In behalf Of the Erie
Railway Company by Messrs Field and Shearman but
the transfer of other business to the administration
Of the Company the legal matters passed into the hands
of Barlow Larocque mcfarland, the present counsel
of the Company, who contemplate pressing the matter
vigorously in view of their recent success with Could
II they should be successful, their efforts will add
O. 10000 to the Erie treasury. The complaint upon
which the action is based sworn to by the late
James Fisk ir., the points of 1t being as follows:
In February March, 1863 several actions were begun
against the Erie Company and several of its officers in
winch the plaintiffs called in question various acts on
the part Of the officers Of the Ere particularly Daniel
Drew the treasurer Of the Company. The complaints
were brought for protection of the stockholders Of
Erie.
In July 1863 a compromise effected between John
s. Eldridge the President of Erie, and Daniel Drew,
Treasurer, side and Richard Schell and Frank
Work on the other, by which agreed that these
actions should be discontinued
The agreement was that Mr.. Schel should receive 429
shares and 25O from Erie; that Commodore Van
derbt should be relieved of shares of the capital
stock of Erie which he carrying and should receive
iii addition 81 100000 that the Ene directors should pur
chase for Its account bonds OF the Boston Hartford and
Erie Railroad Company for s50COOOO at so per cent and
that Erie should pay the interest thereon and indorse
the same.
Fisk in behalf of Erie alleged that this compact
carried into effect about July H. 1868 and that the Drec
tors OF Erie majority OF whom were under the infiu
ence of Edrgde and Drew, caused to be paid to Van
derbt in cash. and bonds Of the Boston, Hart
ford and Erie 10 the amount OF s250o0O belonging TO
Erie and ndored by It's President and secretary in con-
sderaon Of $4,000 shares of Erie stock, which were then
transferred oy Vanderbilt TO Ere and at the same time
they paid TO Vanderbilt 100000 in cash out OF Erie
funds without any adequate or legal consideration.
AT the time OF this compromise 1t Is alleged that FL
bridge was President OF the Boston, Hartford aud Erie
and was largely interested in disposng OF the bonds of
his Company Erie; and in one Of the actions men
toned an injunction had been granted by the Supreme
Court restraining the directors of Erie from ndorsine
any OF his bonds, and preventing the Erie from compro
missing its claims against Drew.
IL was further alleged that the object OF Edrdge and
Drew In compromising was to end the Injunction and
that Of sche and Work 10 make money for themselves
all intending by the compromise to defraud Erie: The
complaint also stated tnat Commodore Vanderbilt nj
the time of compromise, claimed 10 control Sche
Work and induced Drew and EIdrdge TO use Their
influence with the other directors Of Erie ocomplee the
purchae of the promising that the actions OF
himself and associates should be discontinued II tho pur
chase were made. .
II claimed that the Erie had authority under its
charter purchase It's stock and that although III
had for stock yet the price paid by II 10 Com
modore Vanderbilt WAS III least s5O0,OOO more than nc
could have got for 1t m the omen market The complaint
alleges that before the beginning OF the action the Erie
Company rendered the defendant Vanderbilt, 5000
shares OF its capital stock, and demanded the return
from him OF the money and bonds received by him, but
that he would return either.
The complaint concludes with the petition that
Commodore Vanderbilt shall be restrained by injunction
from dkp0sng OF the Boston, Hartford and Erie bonds
and that they with the Of o. shall be restored
10 the Erie Company
The matter was decided against the Erie Company,
but the case was carried 10 a higher court appeal
and under the direction OF 4. Newell Of Barlow, La
ROGUE MacfariaDd, Will he pressed trial. Presi
dent Watson OF Ere has ordered the 10 be printed
and has called for comics Of the COMPLAINT