Waterbury evening Democrat., 1907-10-16

S1o,UuU lSuE DedI IS or "'i'Iu' "'"
 appropriation of Funds of Corpora
 tion-Directors of 1907 Also Accused.
 New York, Oct. 16.-As a result of the startling testimony of Anthony N. Brady and John B. Mcdonald before the public service commission two suits were started by Daniel w. Bur rows of Chicago against Thomas F. Ryan and his associates in the Metro politan Securities company to compel them to return to the treasury of that corporation almost $1,OOO,0O0. One ae- tion began in the supreme court is for an order compelling Ryan and his part ners in the division of the "melon' in the purchase of the Wall and Cortland Street Ferries company to pay back S7156O7.19 on the ground that the money was stolen by the connivance of the directors of the corporation. Another suit filed in the United States circuit court is for an order compelling either the directors of the company in 1907 or John B. Mcdonald to refund the S25O,OOO which, as Mcdonald tes- tified before the public service con- missioners, was paid to Mcdonald by the Metropolitan Securities company at Ryans order that Mcdonald might re- lease a Ryan syndicate from a con- tract to build subways.
 In the suit for the recovery of mon- ey divided by Ryan, Whitney, Dolan. Widener, Elkins and others Burrows alleges that the directors of the Metro politan Securities company in 1902 ut terly failed to perform their official du- ties and permitted the money of the Metropolitan Securities company to be stolen, wasted and squandered and misapplied in the ostensible purchase of worthless securities in that they ap- proved of the operations whereby such | waste and theft were effected" In the case of the payment of $250000 to Me Donald the directors in 1907 are ac- cused of neglect in permitting the misrepresentation of funds"
 Burrows, who holds 1,4O0 shares of Metropolitan Securities stock, filed a suit several months ago to dissolve the Interborough-Met
 Directors and Beneficiaries.
 The complaint growing out of the 1 Brady deal names as defendants the Metropolitan Securities company, Her. bert H. Vreeland, Edward J. Berwind Paul D. Cravath, Thomas P. Fowler George c. Haven, James H. Hyde, Au. gustus D. Juilliard, Richard W. Meade Edward W. Sayre, Mortimer l.. Schiff as directors of the corporation in 1902 Thomas F. Ryan, Thomas Dolan, P A. B. Widener, Grant B. Schley. Wat son B. Dickerman, Henry P. Chiffon Harry Payne Whitney, as exVutor Of the estate of William c. Whitney, and R. F. Brower as executor of the estate of William L. Elkins.
 The complaint alleges ''on informa ton and belief" that in 1899 Anthony N. Brady acquired all the capital stock and bonds in the Wall and Cortland Street Ferries company; that in June 1902, the franchise of that company was of questionable or no value. be cause an injunction was pending against the company. After telling oi the payment of check for S965, ,607. 1s to Brady for the stock of the company and saying that Brady was entitled rightfully to S250,000 of that amount the complaint alleges that the payment of the entire amount was a trick anC device and part of scheme to chea and defraud the Metropolitan Securi ties company and enable William c Whitney, Thomas F. Ryan. ThOma! Dolan. P. A. B. Widener and William L. Elkins to steal S715. 5.607. 19."
 The complaint alleges that tn, amount taken was divided as follows Grant B. Schley. Watson B. Dicker man and Henry P Chiffon. constitut ing the firm of Moore X Schley, S134, 02S.92: William c. Whitney. $111, 652.TS: Thomas F. Ryan. the same Thomas A. Dolan. the same; r. A. B Widener. the same: William L. Elkins the same" The complaint alleges tha the use of the company's funds to aC quire the securities was unwarranta ble and that such funds were squan dered and that the directors of tn company could have ascertained tha fact. but fraudulentiy or with gros negligence they permitted the funds t be wasted.
 Restitution Demanded.
 The second suit. filed in the Unite' States circuit court, names as defend ; ants the Metropolitan Securities com . nany. Thomas E. Ryan. John B. Me