The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-17
BIG SUITS INVOLVE
FOUR RAILROADS
Newman Erb of New York Is
Sued In Cincinnati
ACCOUNTING DEMANDED
Account of Deals Whereby Four
Railroad Properties Change
Ownership

Cincinnati, August 16.-Suits for injunc-
tions, accountings and damages totalling
millions of dollars and bringing into ques-
ton deals involving four railroads, were
filed here today by Rudolph and Leopold
Kleybolte, brokers. The suits are chief
ly against Newman Erb, New York at
torney, who, since 1908, has been dis
bursting trustee for the old firm of kley-
bolte & Co, a concern which declared
itself possessed of assets of IS, 100000 when
the liquidation was undertaken. In addi-
ton to Mr. Erb of three suits is di-
rected at the Chesapeake and Ohio rail-
road ard William Bradford, president of
the Chicago, Cincinnati and Louisville
railroad The Kleyboltes charge Erb
with a violation of trust, allege collision
and fraud and that he specialized in
securities held by him as trustee. Three
principal aeeountings are demanded and
a prayer for damages names $1,110,00o as
the amount they desire to recover from
Erh
The damages are asked because 1t is
alleged that Erb. as trustee, permitted
81, 20, 900 par value of Dayton, Toledo
and Ironton railroad stock to be sold at
auction for 100000
The plaintiffs demand an accounting for
over 81, 100000 profit alleged to have been
made by Erb In acquiring control of the
Wisconsin Central railroad and turning
ii over to the Canadian Pacific.
They also ask for an accounting of
the deal whereby the Chesapeake and
Ohio railroad bought the Chicago Gin
cinnati and Louisville, and ask that the
court restrain the payment of the pur-
chase moneys until that accounting is
made.
The third accounting demanded relates
to a deal by which Erb is alleged to
have acquired at a low figure a block
of the Ann Arbor Railroad company,
Erb being chairman Of the board of
directors of that road.
The suit affecting the deal whereby
the Chesapeake and Ohio railroad bought
the Chicago, Cincinnati and Louisville
road asks that an injunction be issued
to rel rain the purchaser from paying
over the moneys for the property. The
Kleybotes assert that they held a one
third interest In the sold road and that
Erb arranged to bring about forced
sale whereby these securities were dis
posed of at less than their par or mar
ket values
In the third suit, which asks generally
for an accounting of alleged profits as
serted to have been made by Erb in
alleged speculation in securities received
by him as trustee, mention is made spe-
officially of the alleged Wisconsin Central
deal and another in which the transfer
of $3.50 shares of the Ann Arbor Railroad
company by the Provident Life and Trust
company of Philadelphia figured. The
profit to Erb of the alleged Wisconsin
Central transaction is said to have been
over s1,000,000.
In the Ann Arbor deal Erb is alleged
to have approached the Philadelphia con-
Germ which was one of the creditors of
the Kleybotes and bought the stock de-
spite an arrangement to pay Off loan
for which the stock had been pledged
When remonstrance was made the plain
tiffs assert Erb offered to turn back the
stock, but at an advanced price over
that which he had paid for It,