New-York tribune., 1874-12-11
RAILWAY COMPLICATIONS.
ERIE SUED BY THE ATrORNEY-GENERAL
PRESIDENT JEwErr's SALARY, THE SARATOGA COM


OF OBSERVATION-DISCLOSURES SALE OF THE GRAND
OPERA HOUSE TO A. 7. STEWART.
Another suit is added to the volume OF Erie
litigation The Attorney General caused papers 10 DC
served yesterday on President Jewett and Treasurer
Shearman In the su OF The People agt The Eric hai-
way Company. The principal acts recited I'D tne co
paint as Illegal the combination OF the Erie WIN
the other trunk railroads In "pooir2' the h'es'o'A
earnings the Saratoga compact and lastly the extraor
dinary contract whereby President Jewett receives
$4,000 year for ten years. s75OO0 being payable the
first year.
meeting OF the directors OF the Erie Railway was
held yesterday at the Office OF the Co npany There was
a full attendance OF the directors and Hugh D. Jewett'
the president occupied the chair Tae greater portion
OF the business Of routine character having no
general interest. The report Of John A. C. Gray VINO
was appointed go abroad to negotiate the bonds OF the
Company. read and referred to special COMMITTEE
The directors declined to allow tho report 10 oe auo
public. the ground that 1t was matter purely oi
private nature in which the public had no interest,"
They refused to allow tho purport OF the doe
ument TO be made known. The Offices Of the Company
will be removed during the remainder OF the present
month to the old Erie building at wcst-st and Duane
and hopes are entertained that tho whole OF the Ds
department Of the Erie Railway will be carriea v"
In that building and after the beginning of 1870
1t was reported down town yesterday that the Erie
Railway Company had sold the Grand Opera House u
A. T. Stewart for 81 and that he intended 10 con
into great westside retail drygoods store. INC
Erie directors said that such not the case the com
mittee having charge of the matter having mace no
report. The committee stated that offers had been
made for the property without result as yet The STOCK
advanced however, on the strength of the reports
The following is the complaint the new litigation:
THE COMPLAINT
~ Y. Supreme Court: Toe People OF the state OF
New York agt. Hugh j. Jewett and the Erie Railway
The people of the State of New-York plaintiff by
Daniel Pratt, their Attorney General hereby com
PLAN of the defendants and allese upon aiorn a''oh
l. That the Erie Railway Company is corporation
duly authorized and organized under and by virtue OF
OF the Legislature Of the state, the irst OF
which is entitled An act relating to the foreclosure OF
The New-York and Eie Railroad, passed Apnl !, 1860
of which is act entitled "An act IN ad
dtlon to an act RELAXING 20 the foreclosure ana sio "
act entitled IAN act ia relation to the Ere
Railway Company" passed March 2S. 1852; ana that
herein stated operated railroad between the City of
Npw-York and Dunkirk in this State; and :. ,oo,
H. That ever since SAID organization 10 mas pefh
and st is possible quaicatiOn Of any person ior ihc
office of President OF SAID Company that lie should p th
Director thereof and that that office as well as tne
Office of Director thereof must be flied by election IRON
to year each holding the oico Ior one year ana
Ill That n or about the month of July. 1874 tho de-
fepnan Jewett duly elected Director o sald Com
pauy for the period OF one year an no iohf ana ,a
he tnen upon the duties and rustsof tnat o1c
and still such Director; that Immediately there
after ne was elected President of sli Company, 10
hold his office for the term of one year ana no loDger
tue duties OF said otce o. PreSldent' and Sui Is sueh
President. . .- ...o. ,u,or
malion aud belief that about me same line tue
ant Jewett being dlrectorof SAID Company mie Ger
tain contract with IL represented by It's then Boird OF
directors whereby he in form became bound to serve
said Company President for the term OF ten years
from his said election, and SAID Company IN form De
came bound accept his service in that capacity for
that term, and TO pay him therefor the sum ot Ho'OJ
form 10 pay to him ON Of his said salary tho
sum S75ooo during tue rst OF sad ten years In IN
Ia Hp
time curing the month OF September, 1884, the rst sum
OF $4,000 to DC drawn IN equal monthly iIstanents
throush its payroll aud he bllaIce IN hve promssory
notes or accepances Of said Company OF sGD each TO
ature respectively al two iour sA' e'sh'' anu Ten
v And plaintiffs further allece and aver that said
contract was and is illegal. colusye. fraudulent, and
void that said salary n itself was and is grossly up-
Sy Which aud properly said
shall unawully alenated and paid out to the said
vi And plaintiffs further aege and aver, upon infor
nation and belief that notwithstanding tho illcgaly
and other wrong in said pretended contract, said Com
pany and said Jewett have proceeded to execute the
sae aud SAID Company has actually PAID 10 saId Jewett
tho sum OF SIS 900 cash. thereby provided 10 D PAID; aud
las also made and delivered to said Jewett i've prOms
sorry notes or acceptance whereby IN eaen 1t promised
len months, Sept H. 1874 the sum OF $4,000 and
wit the maturing az TWO Iohtns' as dlOresai ana
mas actually permitted said Jcwet to draw from lts
staments in that nealf provided by SAID pretended
contract. and that the defendant threatened 10 execute
al
.5OOO and unless restrained In that behalf WILL exc
cute same.
Jewett doing the acts and tninSs Aforesaid unusty
and unawfully acquired the property OF SAID Company
for himself and has suffered tue property be wasted,
and been aud Is gdily OF gross misconduct IN tle
office of director ana in the office OF president OF sad
Cnmpany and In those respects has abused his said
trusts will continue his said unjust misconduct ana
unjust acquisition and tGe abuses Of ms trust unless re-
strained ny this honorable cour and suspended IVOn
said utfces and each thereof
viii Aud plaintiffs ther acge and that leave
ed y
the ree hereby sought aud such otner aud rtner re-
lief in the premises as may be equitable AM just
TX Aud for further secured aud separate eanse OF
action plaintiffs alege and aver upon Information
and belief that the several alleged in the Erst
and third paragraphs OF this complaint are true and
that the said Erie Rilwdy Company ana the New-iork
corporation organized aud existing under the laws OF
TINS State, In about the month or July, 1874 enefed
into combination and agreement whereby, among
other things it agreed that tue rates for the raDs
portaton OF 1--we stock over and upon their SAID roads
should be made UNIFORM, aud that each OF said com,
panies after certain time. should Increase ts said
rates and that the earnings OF each OF said companies
should be divided aud shared between them and oiners;
aud that aterward tine fact Of said agreement aDd CON-
bnaion together with the fact that 1t provided Tor
division Of such earnings, became known 10 tnesdid
defendant Jewett.
x. And Plaintiffs further aege and aver thatlsaid
agreement and Is wholly Illegal and against public
policy and the interests and rights of the piintn ana
pressiy prohibited by law to the 10 be in-
terestcd any such scheme but that notwithstanding
the said egality ana wrong, the said Jewett AS d.
rector aud as President of said Erie Railway Company.
has long me to Wit ever since the monh o1 Juy'
been aiding and aOettlng the shiu cOnolnahop'
mt aud has been executing the same
aud unless restrained aud eDjoned from further execu
ting the same will continue his said wrong ana the
wrong Of SAID Company In that behalf. Aud the pam,
ts further allege aud that IN doing the aforesaid
acts said Jewet guilty of misconduct In Ills
said offices respectively ana abused his trusts.
XII. And tor further. third and separate cause OF
elton plaintiffs alege and aver upon Information
and belief that the several matters alleged In the first
and third paragraphs OF this complaint are true, ana
taat certain OF officers OF said Erie Railway Com
pauy and the officers Of said NewYOrk Central and
Hudson River Railroad COmpany-a corporation duIy
and vtQfin fhp
the Pennsylvania Railroad Company another railroad
OF said corporations being competing
lines between the City Of NewYork and the CITY OF
Rufalo in this and railroad cen