New-York tribune., 1907-12-25
MUST FACE REFEREE.
JACKSON BEGINS SUIT
SUIT
n. Y. c. RmIzeay Directors Ordered
Before John Frankenheim.

m, motion of Herbert R. Iinburg special coun-
sci for the Attorney General, Justice Green uii
issued yesterday an order directing H h freeai'o'
Oren Root and seven other directors Of the Ne"
York City Railway Company TO appear before John
Frsnkenheira as referee for examination IN the
suit of the Attorney General 10 wind up 'he coi =
porate existence OF the railroad company ihes
must produce also for inspection all minute DOORS
containing records Of meetings OF the clrecloiS VI
executive committee since September l. ISo
Hearings before the referee will begin on Docern-
Der 81 In an affidavit fled with the motion OF ms
special counsel the Attorney General declares tat
from the dispositions taken he expects TO prove All
his allegations Of colusion in the federal receiver
shin proceedines and that the company has oeeh
fnsolvent for more than a year, ana SO mas lor-
f,ted IT'S right TO operate under state given fran
chfses
The directors who must be examined. under Jus
tice Greenbaum's order. are h Ii Nreelallu'
Charles E Warren Daniel B. Hasbrouck. De Cht-
ford Moorehead Richard ". Meade Ralph l. An
derton jr. Frank s. Cannon, oren Root ana hd-
ward w Sayre. Mr.. Vreeland was president OF
the company and Mr.. Warren secretary
in his afidavit the Attorney General recites the
happenings in the suits brought by the peSholi
Contracting Company and the Pennsylvania steer
Company which resulted in the appointment OF
Douglas Robinson and Adrian H. Joline by Judge
Iecornbe as receivers for the railroad conpan!-
These proceedings he says. have been aIiese" III
his suit to be collusive and fraudulent anu enc
q <
concerns interested the instance OF the rallfodu
company To prove this the affidavit says SUCH
examination is material and necessary
..The facts with respect TO such colluslon are
peculiarly within the knowledge Of the oei eHoai'
its officers and directors and not within the per
sonal knowledge of deponent, and the flalhtiIis
contention can be established by such examination
IL SAYS in another place. Also. OF the minute
book that such minute book will disclose WhaI
official action. if any, was taken by the de1enoal'
through its directors. in regard to the foregoing
matters
'Deponent is of opinion that plalnths' Without
said examination, cannot safely so to trlal' ana
that the interests OF the plaintiffs require such eX
animation TO be had in advance Of the trial de-
clares the Attorney General. adding that he ex-
poets TO notice this action for trial at the tenroay
term, and TO claim preference for TINS case Sii0e
the people plaintiffs
AS to his charge OF collusion, the Attorney Cen
eraf SAYS he hopes TO prove that part of the ar
rangement was that the Pennsylvania Steel COM
pany and the Degnon Contracting Company, as
simple contract creditors with lien upon the de-
fendant's property and without reducing their
claims to Judgment, should bring an action in
equity in the United States Circuit Court, we'll
knowing that this court had no Jurisdiction and
that the bill Of complaint asking for receiver
was deTnurrable and stated no cause of action In
equity: that the defendant should admit all Of the
allegations of the bn and also apply for the ap-
y,ointrnent of receivers and waive all questions OF
jurisdiction in the United States Circuit Court; that
the defendant should select counsel for the COM
planants and manage not only the defence OF the
action but its prosecution well and pay all the
expenses of the complainents in the action, and
finally that the action, nominally brought In the
name of the complainants, was really brought by
and al the instance OF the New York City Railway
Company. The affidavit continues:
further proposed prove by such ex-
animation that the said arrangement and scheme
carr q
.,ntroversy between the parties in said action i'll
there fictitious controversy, and that the
New York City Railway Company was in truth
and fact both complainant and defendant in said
alleged action; that The said action was colusiVe
and fraudulent and an imposition upon the United
States Circuit Court; that said United States Cir
cult Court. by of said colIsiTeness- had no
jurisdiction in the premises and twas wholly with
jurisdiction 20 appoint receivers Of the prop
eTty Of the defendant railway company.
James l. Quackenbush. attorney for the New
York City Railway Company, would not discuss
this latest phase of the He said the thing
would be thrashed in the regular routine of
legal procedure.