New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-20
INTERESTS or THE RAILWAYS.

A SUIT AGAINST Mr.. JEWETT AND ERIE.
CHARGES BY TWO STOCKHOLDERS OF THE sUsPEN-
SION BRIDGE AND ERIE JUNCTION RAILROAD.
William II. Barr and Myr0n p Bush, owners
OF about 800 shares the capital stock OF the Suspen
sion Bridge and Erie Junction Railroad Company, OBJ
tanned yesterday from Justice Daniels in Chambers,
through Elihu Root their attorney. leave to sue Hugh
j. Jewett. as receiver OF the Erie Railway Company
upon the cause of action set forth III the complaint
The defendants in the action Mr. Jewett. receiver
Of the Erie Railway, the NewYOrk, Lake Erie and West
ern Railway Company, and the Suspension Bridge and
Erie Junction Railroad Company.
The plaintiffs that the formation OF the Bridge
Company promoted oy those in the interest of the
Erie Railway Company and the intention that the
Bridge Company should make road between Buffalo
and the Suspension Bridge that should be available for
the advancement part OF the business interests of the
Eric Railway Company" On June 7, 1870, the Bridge
Company made contract with Mortimer Smith for the
building OF the proposed road. The Bride Company
agreed mortgage its road to secure S1,000OOO OF
bonds and the bonds to Mortimer Smith in part
payment for the work. and 100000 IN the captaof the
company which bonds and stock were to be the eonsd
Grafton for the execution OF the contract
The plaintiffs further aege that soon thereafter the
Ere Railway leased tho franchises and road OF the
Bridge Company agreeing to pay as rent 30 per cent OF
its earnings and that the rent that should be paid
IN each year should not be less than S05 900. which the
lessee aRfeeu RDsOiuteIy toTaJ Jeul' "oh"o
above mentioned guaranteed by the Erie Railway,
and the interest thereon regularly paid by that com
pany until Mr. Jewett appointed receiver in 1870
He receiver, did not pay and wronguly refused to
pay the required to be paid under said guarantee
on said stock certificates, ana wrongfully refused
more than $4,000 per year Of said rent, and kept
and wronguly retained the $4,000 per residue OF
said rent"
II IA averred further that the Erie Company ana It's
representatives the purpose OF enabling IL or tnem
a said Bridge Company STOCK at q low fgurc,
coDspred together TO compel tie holders ot SAID etOcK
part with the for less than Its par or true Vaue
and tna said conspiracy and wrongful eort nave oeen
and now are by the other defendants; the
said Bridge Company being now and FORA long time
past the control Of the said Erie Railway Company
or of tne other defendants Of some OF them.
And 80 successful the efforts OF said conspra
tors TO depress said stock and get control OF the same
after they had acquired large part tIefr0I tnat not
wthsandng the Board Of Directors OF the Erie Railway
on the 9th OF May 1874 authorized the purchase OF the
same up TO an average rate 90 per cent or the par
VA ne thereof SAID company and its officers repre-
senatves compelled the sale thereof at prices as low
as 10 per cent said par value, which the largest
sum ley will now pay 10 either Of SAID plaintiffs for
their stock though said Erie Railway Company had
once agreed To pay the plaintiff several times that
price Tor the stock he now holds"
In conclusion it is alleged that 1t was
violation OF duty on me part OF
ton and distribution In dividends OF the fu, rent ana
tla the lessee the add the defendants have
earnings Of the Bridge Company Of Its road under tue
lease whereby IL is made difficult TO determine what
cent of the value the and that Tor the proper
protection of these plaintiffs In the future II Is necess sary
tha iu and clear OF such earnings should be
kept The plaintiffs demand therefore. that an account
Tx be mad OF the earnings OF the leased road
hands OF the Erie Road that the defendants IN future
he rraulTed keep unS tnat snail snow nc gross
annual earnings OF me leased properly ennt sE D,se &
Company be required from time 10 tnie 10 conect Tue
rent and aud distribute proper dVldeIs; ana
tho NewYork Lake Erie and western kaiiroad
ing 10 the full terms of the lease.