The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-08-17
Suits Against Erb, Bradford
and Other Former G., c. 4
/. Officials Prove to Be
Quite Sensational.
ASK RESTITUTION OF
THE FORMER TRUSTEE
Erb Charged With Using His
Position to Divert Assets Of
the Road for His Own Ag-
qrandizement.

grandizement.
Cincinnati, Aug. 17.-Both remark
able and serious are the allegations
set forth in three suits filed In tho
superior court yesterday BY Rudolph
and Leopold Kleybolte Two q the
suits are against Newman Erb. & ~
tired New York attorney and Z rail-
road financier. individually. and the
third Is against Newman Erh. the
Chesapeake and Ohio Railway CON
pany, William a. Bradford, formeg
president and director Of the Chicago,
Cincinnati and Louisville Railroad
company, now taken over by the G.
and O.. and the Chesapeake and Ohic
Railway company Of indiana, the new
holding company Of the old G., G. and
L. Railway company.
The action dates hack to the finan.
cial depression Of 1905 and 1907, when
the old firm OF Rudolph Kleyt0lts =
Co, felt the effects OF the strinEenCy
Of the money market, and, n order
to conserve its interests and to pro
tect the memberA Of the fiYm ana III
creditors. placed its affairs d ne
hands Of trustees. Of which Erh va
the managing trustee and allegsd rsp
resentative OF the Klsyboltss.
The trial Of the case II expoc1o4 10
disclose to the public H. wb0le In
sides OF remazkable caso Of railway
financing and bring Into the limsaight
some persons of whose part the public
has not been Informed.
1t IL alleged that Erb used informay
tion which he derived through M
position ~ trustee 10 speculato IN
and upon" the bonds. stocks and -
curities belonging to the Kleybo1ts1
and covered by the trust nroetant.
he taking advantage Of the dopcoood
condition OF business affairs. a1d ~
the powers and position" given q
him by his trusteeship, It II ALLEGED,
to purchase In his own name 9t0chN
and bonds and securities Of the COM
panies and railroads IN which tho
trust estate was interested. includins
collateral securities held by creditors
Of the Kleyboltes. at sums Tar below
at q greatly advanced price and real.
lied large profits, thus cutting OF III
the Kleyboltes' equity in the stock %
well as the trustee estates equity.
In addition 1t ID alleged that Erb
permitted the sale Of 81 .708. 900 worth
OF trust notes OF the Detroit, ToJedo
and Ironton Railroad company. With
cost them $1,141.560. and accrued n
forest. for the small sum ~ 41o0. 0.O0o,
the purchasers being the holders a
the note for which the securities were
collateral.
Million u Demanded.
Upon the first suit an accounting y
demanded and . receiver Il aalcoA to
take charge Of al the profits Drb -
alleged 70 have derived. whtle Il he
second suit judgment 10 asked fof ~.
100. 900 with interest from ssptsmbee
10, 1908.
In the third suit, which II aSninst
Erb. Bradford and the, two railrOaA
companies, II II alleged that the
Kleyboltes held 1881. 900 Of Tho et0ck
Of the c., C. Z L railroad, which cost
them 31,z60.O0O and which was plods.
cd to various creditors and repfeoent-
ed part Of the trust fund placol n
the hands Of the trustees This vas
one-third Of the stock of tho C- 9. y
=. and Bradford held tho ba10nes.
The allegation y that Erb aaA Drad-
ford entered into nm asreean1at