The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-01-07
GIGANTIC FRAUD
CHARGE AGAINST
RYAN INTERESTS
| They Are Asked to Dis
gorge Alleged Ille-
gal Profits.
SUIT is BROUGHT
10 RECOVER LOOT
Action Sensational as Any in
"Met" Manipulation-Plair1-
tiffs Sue for Millions Said
to Have Been Taken
From New York City
Railway Company.
fspecial to The ,rimes-Dispatoh.

Railway Company.
Especial TO The ,rimes-Dispatoh.1
New YORK. January 6.-As sensa-
tional as any developme ent In the Me-
.tropoltan street Railway manipula-
tion by the Ryan interests Is the suit
brought In the United States court
to recover $2.797.2o0. which, 1t Is
charged, was taken from the New
York City Railway Company without
any consideration. The papers have
been carefully kept from public gazs
in the hope that this money would
be refunded without litigation. But
efforts to this end apparently have
failed, and the suit will be called on
Monday next before Judge Ray.
The directors who are legally asked
to refund this large sum are Thomas
F. Ryan, the retiring multi-millionnire
.financler. of Fifth Avenue, snffern, N.
y, and Oak Ridge. Va, former partner
OF the late William c. Whitney.
Mortimer L. schieff son OF Jacob
Schief. and member of the banking
house of Kuhn Loeb Il Co.
Peter a. B. Wfdener. multi-miilion-
aire fnancier. of Philadelphia
John y. Crimmins. contractor and
philanthropist, OF New York City.
q Edward j. Berwind, fnancier and
coal operator and associate OF Ryan
in the latter's banks and trust com
panies.
Thomas z. Fowler, railroad presi-
dent and insurance trustee,
Paul u. Crayath, personal counsel to
Ryan on the traction firing line.
Herbert II. Vreeland, former presi-
dent of the Metropolitan system.
I0o1an of I3Ii1o.
delphia. an associate Of Widener.
Is: y W. SAYS minor Mesropolitau
officer
Charge of Conspiracy.
The charge as made In the com
plant is phrased as follows:
"On or shortly prior to February I 8.
1902. the defendants and certain of
them entered into a combination and
conspiracy to appropriate to the use Of
the metropolitan Securities Company
large sums of money out of the capital
of the New York City Railway COM
pany. without the Metropolitan Securi-
ties Company giving any consideration
therefore. in which conspiracy all of
the defendants. either at the time or
subsequently. Joined and participated
with full knowledge OF the nature and
purpose of said conspiracy. Pursuant
to said combination and Conspiracy and
with the purpose Of intent aforesaid.
the said defendants concocted and con-
summated the wrongful and Illegal
scheme hereafter set forth. by means
of which, under tile guise of financing
the S23,O0o.000 payment to be made by
the New York City Railway Company
to the metropolitan Securities Conn
pany. they as directors Of the New
York City Railway Company, paid over
fn 10 olv 7or al F%tx1
Metropolitan Securities Company. ana
to that company, large sums Of money.
amounting in the aggregate to at least
S9.79I200. which were taken out or
the capital OF the New York City Rail
way Company and paid over without
the recent by the New York City Rail-
way Company. or any consideration
5Whateyer.,' sd ys1ft
The PLAINTIFFS.
me suit is brought by Adrian II.
HJollne. former receiver OF the New
YORK CITY halfway Company and pres
ent receiver of the metropolitan Street
Railway company; Douglas Robinson.
former receiver of the New York city
hallway Company and present re-
ceiver of the Metropolitan Street Rail-
way Company, and William wv. I.add.
present receiver of the New York City
Railway Company.
The penal code reads: "a director
of a stock corporation. who concurs
III any Vote or act Of the directors
Of such corporation, or any OF them
by which it is intended to make a
dividend except from the surplus
profits arising from the business OF
the corporation, and in the cases and
manner allowed by law. Is guilty Of
a misdemeanor." ~
IL ~,
prosecutors this statute has run for
all the accused. Al 3f|
The New York City Railway Com
pany once owned and operated two
miles of single track In Mount YER
non. Its Importance comes from the
fact that It has been changed with
being the medium through which un-8
earned dividends We're paid on the
stock of the Metropolitan Street Rail-
Way Company. 1t guaranteed the
famous Z per cent. dividend on the
S52,oO0O0o OF Metropolitan stock--nowr
lnter-Met. Common--and also guaran
Bteed dividends at various rates on all
the leased companies of tha system
,netore she destruction as try OF the Traction
Sodom and Gomorrha, as the "Aret,,
and Third Avenue systems arc now
facetiously called.
On the other hand, the equity action
was to force the directors Of the Net
ropolitan Securitlss Company to make
an accounting insrespeet 10 the trans
actions whereby the New York City
notes to the Metropo1fs fsan Securities
Company ..sat ~ per cent. aot their face
value. and redeemed shens from the
Metropolitan Securities Company an
par. Ths.same mon or their dummies.
were ydirectors OF both companies,
VT rnunfifsrfS. vprnud ~
n After setting forth9the dataiis OF the
alleged conspiracy the complaints say:
''The aforesaid acts OF the defendants
constitnte, In contemplation OF law att
fraud upon the rights or all persons
and Corporations 10 whom tho New
York City Railway Company had iMs,