New-York tribune., 1874-05-08
THELAKE SHORELAWSUIT.
COMPLAINT OF JAMES II. BANKER.

,,,, ,,sr,rr oF HORACE F. CLARK AND CORNELIUS
y,NDppRur. AS PRESIDENT OF LAKE SHORE,
Also srrD-THE AMOUNT FOR WHICH SUIT Is
BROUGHT FIXED AT HALF MILLION OF DOLLARS
II has been no secret in financial circles that since
tbe death of Horace +. Clark, and the subsequent
disruption OF the Lake Shore pool" by the Pani''
there has been feeling of great bitterness IN VIVA,
"a known as the "Yanderbht party
the time of the failure OF ueors' "n
Grinneu & Co. (who afterwaEd so hohoi"'p -
deerped their good name there were many events
which came 10 light rejecting seriously upon may
,,ersons prominent in financial circles Inc o"nA
runtcv proceedings instituted against Grlhnen " w.
5oveloned remarkable facts which excited con-
sternation in the minds Of many persons GTinleI
& Co had over $1,000 shares of Lake shore c"'-irH
g Tho ,oint account of James II. Banker Horace /.
C,,rl and Aupustus Schell which opened the eyes Oh
a. community TO the extent and character OF mucu
90 +bo n, siness transacted in Wall-st. Commodore
Vanderbilts election 10 the Presidency OF tne Lahc
shore Railroad Company did not create frlendHer
s,;-it or,orr the survivors Of the tTiumyirate III
tbir relations to himself and bis friends, for almost
r. f-s+ act WAS 10 oblige Schel and BANKER
10 make certain concessions and transfers W
him 10 secure himself and the Lake ShoIe nan
road Company against loss by the operations o4 'no
,oo - Tho transfers of James II. Banker jr., were
lv '''--Nf
were the subicct of general discussion few days
", I'm Tprpr-yr gave history Of the transac-
tjons and Bankers subsequent desire to recover his
nronertv The threat Of prospective legal proceed
mos on tie part of Banker was noticed but was
peDerallv denied 10y the persons most Interested
Iec-I proceedings have now been begun by BANK
fr against the Lake Shore Railroad Company to re-
cover lis property. Notwithstanding the most
strenuous efforts of all either directly OF indirectly
interested to prevent copy of the complaint reach
inc, the ruIlic press THE TRIBUNE Is enabled TO pre-
sent aus readers with the full text. The complaint
sets forth the relations existing between the
members Of the Lake Share pool" and tAe
internal workings of the financial management OF
thcrairoad II details the history Of the formation
pf the rool: their relations to the firm of George
Bird GriIueU & Co.; the subsequent failure and
bankruptcy of that frm the election OF
C.nmod.re Vanderbilt to succeed Horace +.
Clark as PRESIDENT cf the Lake Shore Railroad;
an EXPLANATION Of thc alleged abstraction OF the
so oo0cC0 of tie Lake shore Company's bonds, and
OF the transfer Of the property to secure Tic Com
pany AGAINST loss.
The corDuI,int concludes with tho demand that
nm account may be had between the persons IN
yolved. and that the three notes TO the amount OF
$4,000 b, given until The property be returned to
the plaintiff Banker. as having been given without
adequate consideration
I, view Of the fact that James II. Banker was
omitted from the direction at the annual election OF
tbeIakc shore Railroad, held at Clcvel.nd the re-
suit Of which was given i'm Yesterdays TRIBUNE
tber.rati9ns Of the plaintiff aud defendants may be
readily inferred
Appended is the full text Of the complaint i Is
acc-rpanied by documents in colroborauon Of the
allegations;
sUsrvv- cr-r7 O -1l Count e. Yer To-Rlar@s e. n Ba1ss- ,
g-.a.a. TIE Lsss shore a-. '-l. -'l' ,E y a. ,-.
lau. Aaaas se -l Asra L. l5 as e5ssai ~ -1 Angus
Jra,s II - afer. plaintiff compaiH&aS ma 0J ] Jae auo'o
named defendants, shows % i-.S court -It -, g.,
,a. D.e O. ise great lines OF commerce between tlc
Fsr4 me Wssr rho United states Is over the ril
c,trl,rf bv tie Ntw-York Central aud Hdds9n River
~, -orf company and the Lake Shore ana Mcbisan
es4.5r @ ~ il .s railroad now and since 1850 owned
and rrsra.el by she ast named coFptft,.'I' va
bg s-,erli distinct corporatlln9' So
t.rr ~r.I company Che CUtict inc tow RI me l-ist
fia-lee T. Clark who died OF tAe -s.A ll oi J'ISg'
iot,tsd 10 ur.uac Uy the surrogate oI JLe l-tX ana
Cour tv OF Nev-l E ln lhe -'l ] 2 'fcFnE,Gt yT4
s'+,,'',, ,,5.s - serlaT- was appointed and qualified
'.l. .r.L "a .a ... lifeline a lawyer OF signal
and man OF large wealth. and Of rtInaTliaoe
.,, c.rlrIrr ms rlroad manager and director,
c,t,nad ana proved u many railroad e-tti lilsc- ID
,r,.b nv interested For several years ana up 10
G. ~, ee .tir- | noracencat Of the Sewl lor Cen
-r and IluH-oa RIVER Etlraad ollpa' ana We @a-9 @
T.ei..rt of the Tlicr Pacific Railroad Company ana
Ireseat o tie Iiae shore and Michigan southern ha.-
way Company, the c,IehdaE, cor oLtol'''o1' W. ,',
r1qfs ..r- .l- lIle with single pita"' CONTINUOUS
- I~.,,l ..-It. from NeN-Io-l TO California.
,. Il, p .dofil S,l' Wiz Mr. tlirS n these ra.
,.. ....r.Isa.. md voi- with AIm directors ln the
NwYok central aa Had,9n tygf ItG.'d Mr. EJgHP1q{ ,l
vas largely interested ia Organizing q continuous
tl.- t.c prosperity, wealth ald icl'encc Of the
oogrtrv L.r-li-d largely upOH TINS. an mat tAc
tgtI t.r,.-l line would eventually be greatly pro-
llucd ny the commerce whlcn su d through lnc would
,orlh and opers,e such through line 90 The interest
Inrr,cDiors action was required between those Oper
uti.- toe VLo. ..u-ih Oh me iAe, aLd seeh mar
Lor 5f oue ureu the route aad consolidating
rtf Ir o. practicable. To that end he Interested
himself largely I merging thl 60 ny N,los
-,tio1s formerly existing and controlling the roads
between L.l40 -Ad CAic 90 ci9sslAT Il a'e Gu uA5rent rem
S.a-as-a work O. 10 small difficulty. Ihls was, now
eve1, uuaI.y accomplished, ana Ia OF aDoat IsDy the
Lake Shore aud -ae--ia oI,tCIl In,
a. ro several -stas Us single consolidated company
under such corporate uame, WIKI r-e powers ana p1'
T2s road has since owned and operated the entire
-. iriI.,t and remained such tll his death
h. reason of lis connection with the other roads,
win aU .le details of management necessary 10 dcOu-
pi-h tire great plan of nteroce2n COMMUNICATION ~hIcA
lie bad aided I'm bringing into operation but Wllch, DY
reason OF the opposition Of competing railroads, was
fag from perfected, and was continually IN IJqIardy
divert freight embdrTd-e necessary connections,
AR Clark with the consent of the directors had almost
entire control Of the management OF the road, con
fUlrrr from f.rnc 70 time upon questions OF doubt
with AIR S.l. ..d his plantH, who an Executive
Committee 1d interim vested "l.n al Ae TOT ers
OF tae Boa,u q. Directors. but IN al matters where
Mr. Clark deemed the interests or tne roau, ne
acted ruOn biz own responsibility IN behalf or the
r,sf e,iar,.y into contracts other roads 1ur-
chasing whatever was required OF lands, buildings, roll
lu stock Eo. buying stocks or other railroads and cor
pOratous whose control deemed necessary aids
or the Lake shore Road as the Lake Shore
and hcl'-n southern Railway company VIII herein
after u THIS complaint be for convenience called
n-L. ---.-r -.- D.. doomed i.r Lno argest lnlerest