New-York tribune., 1906-05-24
mURT HITS TRUESDALE
WESTCOTT WINS CASE.
r,dge Yarns d., L. s w. against
4rousing Public Resentment.


o,inion was handed down in the United
g circuit Court of Appeals yesterday af-
.,,g the finding Of the United States Circuit
-, which awarded judgment TO Robert H.
.ra-.co,t Of S137 .S33 against the Delaware.
,.asavanna & Western Railroad Company for
leach Of contract by that corporation. The
,.,,.iff in the lower court Mr.. Westcott. had a
F.-sct from the road which was abruptly ter
--,,.ted year before its legal termination by
--.s,sent " II Truesdale, OF the railroad COM
INV The court in its opinion. written by Judge
L-.raoe criticises President Truesdale harshly
-. accuses him of having dishonesty termi-
..s5 the westcott contract. and adds that it
Is conduct like that Of Mr.. Truesdales which
sc aroused the spirit of resentment toward
,o-,orations so prevalent to-day.
According 10 the evidence in the case in July,
SOS Arr westcott entered into a contract with
:. Delaware. Lackawanna & Western Rail-
- Conpanv 10 develop the milk business
.,o-, the roads line for which he TO
,s;,,a 90 per cent Of the money paid for milk
,s,ortstion Mr. Westcott was himself 20
,1lsc+ the freight money. returning to the road
de 81 uer cent. He insists that he built cream
cries AZ various points along the road. and in
dave1optng the milk traffic expended S2OO,OOO
If his own money. receiving from freight for
himself up to that time only S155.000 In 1894
bo.b parties, pleased with the fruits of West
,o.+s efforts. entered into supplemental agree
rosn- whereby the contract was renewed for a
-s-io5 Of five years succeeding the termination
n the original ten-year agreement, thus MAX
,ng the life Of the contract fifteen years in all
About this time ". H. Truesdale became the
,,esident Of the Delaware. Lackawanna & West
ern and dspIeased with the terms OF Mr.. West
cotts contract proceeded, ii is oontended, to
terminate IL forthwith. and at the same time
refused to pay the contractor the balance then
sue him on the 20 per cent agreement. Mr..
westcott contended that there was due him at
tbat time S77.6 .64S. the road at that time hav
ing collected the freights. instead of Mr.. West
cott. Is formerly through a concession made
n please Mr. Truesdale Mr.. westcott assigned
his claim TO one Paul. who instituted suit and
obtained judgment for the amount claimed. This
finding was promptly appealed by the road, and
The court above decided against it.
BUILT Up MILK TRAFFIC.
By 1899 3Ir Westcott alleges that he had built
up a milk traffic along the line Of the road
10 such a magnitude that large profits resulted
Extra traffic was obtained. it is further claimed,
through contracts made by Mr.. Westcott with
smaller roads tapping the Delaware, Lacka-
wanna & Western.
In the milk dealing world Westcott had by
tis tine become. il is asserted. a figure of vast
Importance, and was engaged by the New York
Central to develop its milk business along the
lneof the West Shore. which corporation it con-
froLsi About this time Westcott entered into
other contracts, one with the Delaware & Hud-
son, to bring its milk from its Albany & Sus-
quehanna divisions TO New York by way Of
Albany. Contracts were made to turn the Bing-
haInton milk business into the cars OF the Della
ware, Lackawanna & Western Railway. All Of
the latter and other contracts Of Westcott that
in any way directly indirectly diverted traffic
from the Delaware. Lackawanna & Western it
vas claimed by Westcott on the trial of the
original suit. affirmed, We're so made that
they became effective and operative only on the
termination of his original contract with the
Delaware. Lackawanna & Western Railway.
which under its terms. ended February. 1901.
this working. it was claimed. no injury to that
corporation
The road. after concessions on Mr. Westcott's 8
part collected the freights for several months,
and then on February l. 1900. President Trues-
dale regardless Of the supplemental agreement
extending the original contract. informed Mr.
Nestcott his contract had been terminated. The
freight collections had been held from July.
1922, n February l, 1900 Mr.. Westcott's 20
leT cent Of this amounted to S7764S upon
which payment was refused
Offers for A settlement upon reduced per
oentage were ignored. and \ suit was insti-
futed After a long legal fight Mr PauIs
judgment was affirmed and collected Then
followed the suit for the percentages lost
through the abrupt and alleged Illegal breaking
o. the contract. which amounted. it was as
serted To Sl37S53. The lower court after a
Jul hearing allowed the claim of S137, ,S53. with
interest from July !, 1899 10 February !, 1900,
'he GATE Of the contracts illegal ending.
JUDGE WALLACE RAPs DEFENDANT.
'uase Wallace evidently was not much inn
pressed with the defence interposed by the road.
A. lhe opinion handed down he wrote as follows:
jury would have been justified in finding.
-u j IS presumed II found, that the defendant
- -eseaIe had arbitrarily and dishonesty re-
[-d'tl contract which both parties had per-
into Tor six years. then extended for nine
--@cka|anna & Western Railway had regarded
= lar and rea sOnable. when Truesdale. having
ets.eflnined 70 end IL D's-ause IT too profit
e9.e Tor Westcott. and having cast about for an
eAeuse. assigned one unfounded.
u me contract Illegal the defendant was
a. liberty 10 repudiate II. It's conduct des-
Icable in adhering TO the contract when IL was
IIohtabie and Tepudiating II only because II
cogld make money by doing
Inc contract was repudiated from soTdid
motives. and with arrogance born Of scorn
y consequences. The appropriation Of West
cyls percentage which defendant had actually
,s'lected for him, was morally no better than
larceny.
~ those who manage the affairs Of the big
0oFpoFatOns that has aroused the spirit OF re-