New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-01-21
THE COURTS.

SELLING THE CONTROL OF RAILROAD.
ANoTnrR SUIT GROWING OUT pr THE HAvrMEYER
TRANSACTIONS IN LONG ISLAND RAILROAD STOCK.
One OF series of suits by the legatees ana
administrators of the late Albert havemeyer against
Henry Havemcyer and John c. Hayemeyer, to recover
for the violation certain alleged agreements WIN re-
gard to the purchase and control OF Long Island RAN
road stock brought for trial yesterday oeiore
Judge Freedman in the Superior Court. The plainnh
was Henrietta Ha gemeyer the daughter OF Albert Have
never. AT the tine Of the laters death, III August
1874 he was the owner % 1876 shares OF the stocK
Tie total stock amounted $4,000 shares, whose par
value WAS $50 share William A. Havcmeyer ana H.
0. Havemeyer were appointed administrators OF 'he
eli ects 81 Albert IIavemcyer In September, 1874
The averments of the plaintiff, ms presented on Tue
papers aud evidence set forth that until April 1870
the railroad had been under the control OF Oliver Char
LEX that he mismanaged il. and that consequently lts
stock grea y deprecated IN values In February 1870
Albert Havemeyers administrators, as sucn entered
nto an agreement with the defendants for the purpose
OF carrying scheme TO increase the value OF tne
stock belonging both and to get rid of the Charlick
management The defendants were to unite their
ZIG shares ana the II 1876 shares OF the admnisrd
tors with sufficient stock owned by Other persons 10
control the elections BY the election OF their own ON
GERS and proper they expected to raise the
price of their stock in the market But IL WAS agreeu
that neither party should sell stock unless the other
party sold also In accordance with this arrangement
at the annual election in April 1870 the defendant
Henry Hayemeyer elected president OF tue roau'
and the defendant John c. Havemeyer, was made
member OF the executive committee. They thus became
by the help the votes the Albert Hayemeyer stock
virtually the controllers and managers Of the railroad
Acolph Poppcnhuscn this time anxious TO obtain
controlling interest In the road. The administrators
oil ADert Havemcyer entered into negotiations with hni
Ar The transfer him OF the stock belonging 10 pOth
Vic parties the above agreement, at price eqal 10
* per cent Of its par value The fact that MI ppen-
hlsen was willing TO make such bargain was commu-
ucaed defendants Instead OF carrying out tner
agreement IL is alleged that they purchased al low
price other quantity OF STOCK suHlcent VII"
their OWN give Mr.. POppenhusen 30OOO slarrs anu
the control OF road and this Stock which ana nor
comprise any of the Albert Havemeycr STOCK, was sou
10 Mr. POppcnhusen the rate OF 10 per cent OF te par
value The Albert Havemeyer stock was depfeclatee
10 20 per of the value ana the uulnstTatos
claimed damages the defendants amounting TO the
difference between the 20 and the 70 per cent The
plaintiff received her dstrbutiye portion $50 spares,
and therefore demanded $4,000, with interest rom
January, 1876. ~,
The defendants averred that the agreement or feDr
ary 1870 made for the purpose OF getting rd OF te
Charlck acknowledgement and 10 increase the Vdlue OF
The stock and had wider scope. such an arrange
ment as the paintaleged would have been yOh as Pc
ing without against puDlc pOcl Inc
suits were instituted by the administrators VINO were
rival sugar reuprs and personally hostile 10 Tue ue-
valid 1t had been violated by the administrators no
had attempted to sell stock 10 The DISADVANTAGE OF W
defendants, and these sales, u contaminated, W1uu
have resulted in losses to them amounting TO Sl2ZO'o
They therefore pur in cOuuter-c aim for TINS amount
Ii IS expected that the trial OF this case VIII occupy
long time John r. Parsons and Wheeler II. Pecshan
Represent the plaintiff exJudgc john h. Porter ana f.
NJ I,3u.rs e