The Bridgeport evening farmer., 1911-01-03
MRS. HODGE
SUES SUTRO
FOR MILLIONS
w. X. Vanderbilt and Other
Prominent 'Conspirators'
Alleged In Suit to Re-
cover So, ,250,000
Administrators Of Hodge
Estate, Boston, Allege that
They Were Ousted from
Profitable Railroad Trans
action In Canada.

action In CanaQa.
With prominent New York railroad
financiers named as conspirators, fol-
lowing the Juggling of the Canadian
courts. and the swapping back ano
forth of stocks and bonds, the largest
damage suit ever brought in this
county, was filed today in the, Super
ior court. The suit is for $2,250,00C
and is brought by Frank D. White OF
Rutland, VT, and Nellie c. Hodge
of Boston, Mass administrators OF
the estate Of Hiram A. Hodge against
Richard Sutro Of Greenwich. Papers
in the suit were served on Sutro by
Sheriff Richie Of Greenwich.
Mentioned as "conspiratOrs' in the
suit are w. Seward Weff, Henry L.
Srague and Arthur T. Meyer, presi-
dent, ce-president and treasurer OF
the Dominion Securities Co. of New
York, William K. Vanderbilt of New
Of the Standard Trust Co. Webb is
brother-in-law Of Vanderbilt.
In August 1901, Webb, Meyer and
Sprague as officers Of the Dominion
Securities Co., came to acquire GER
tain rights in the South Shore Rail-
way Co. Of Canada. In September
1901, the three caused to be sold all
the interests Of the Dominion Secur-
tiles Co. in the South Shore road to a
syndicate known as the ''South Shore
Railway Syndicate of which Meyer
was made manager. Certificates of
interest were made out 100 In all, to
be sold at $500 each to purchase
capital stock of the South Shore
road. Between Aug. 20, 1901, and jan
ard Trust Co. to the credit of Meyer,
SO certificates OF interest.
On Oct. 16. 1901. Hiram A. Hodge
and the plaintiff. Frank D. White.
were the sole owners Of the entire out
standing stock of the Quebec South
ern Railway Co. On that da1e Meyer
and Hodge, acting for their companies.
gamlation of the two railways or the
sale of the South Shore road to the
Quebec Southern On Oct. IT, 1901.
the boards of directors OF the two
railroads met. according to the ANAL
gaImation. Meyer resigned as presi-
dent of the South Shore and Hodge
was elected to the presidency. Ed
ward Barr resigned as secretary of, the
South Shore and Frank D. White, one
Of the plaintiffs. elected ITO the. office.
The an1algamariOn was completed Jan.
4, 1902. and approved by the govern
ment of the Dominion of Canada. On
Aug. 1. 1902, the Quebec Southern exc
cuted and delivered to the National
Trust Co. of Montreal indenture of
to secure issuance of first
mortgage bonds.
In the early part of May. 1902. the
Dominion Securities Co. became finan-
cially embarrassed. while the officers.
Webb. Meyer and Sprdgue became Sc
riolsly involved pecuniarily. because
Of their conduct OF the business of the
company. The Standard Trust Co.
was pecuniarily interested in dealings
with the Dominion Co. on loans to
It's officers. and as collateral held GER
road. The defendant. Richard Sutro,
was also interested in the South
Shore. holding three certificates of in
terest acquired from Meyer.
In June, 1902. a Protection commit
5ee of the stockholders Of the Domin-
on Co. was formed. Of which James
;. Cannon was made chairman. The
IF w. Seward sWebb from the obdiga-
ions and nquidations' in which he was
involved, and also in the requirement
n this connection Of the interests Of
Webb and William K. Vanaderbilt,
his brotfer-il-law. of various collat-
erals including stocks in the Rutland
Railway Co.. corportion in which
Webb was also interested. Wander
,ilt and Webb procured 81. 1000. 900 which
he committee used for the retirement
# the loans and hduidations which
rad been obtained by Meyers. Sprague
south Shore Railway Syndicate certi-
icates of interest The committee
the ownership of rs of the
certificates.
In July. 1902. it is alleged further.
hat the defendant, Sutro. confederated
ind conspired with Vanderbilt. Webb,
cannon. Meyer. Sprague and the SIAN
lard Trust Co. with the object and in
ention of avoiding carrying out the
of the contract entered into
IN Oct 16 1901. and the amalgama-
ion agreement of July "a. 1902. and for
he purpose Of ousting Hodge and
White from the control Of the prop
anne property for the interests OF
Webb and Vanderbilt, or some rail-
Dad conducted by them. all confeder-
Icing and conspiring in refusing to
larry out the agreements.
Securing control of number OF the
certificates of interest, Surto and the
caused suits to be lnst1-
uted against the South Shore which
we're without legal foundation, not be-
ng brought in good faith and were
Intended for the purpose of harrassing
nd embarrassing the management OF
ne AI1ldlRdHldCGQ 1lOdu anu IO
is credit; the conspirators also caus-
d notices to be served on contrac-
ors with whom the railroad had bus
ness in relation to repairs and ex-
ensionS, stating to them that the
was illegal and also no
flied the National Trust Co. of Mon
real, falsely stating that the ANAL
,amation was Illegal.
BY reason of the institution of the
uits, the contractors declined to pro-
eed with the furtherance Of their
ontracts, the National Trust Co. de-
lined to certify the bonds Of the
Amalgamated, a strike. was precipi-
ated among the employees of the road,
nd the credit of the officers was Sc
erely injured.
Thereby all eliminated in the bring
ng of petition by Meyers and other
olders of certificates of interest Of
he South Shore to the Courts of Can
da for the appointment of a receiver
the affairs of the road.
By reason Of the defrauding acts of
utro and the conspirators, the Que
ec Southern was made unable to
meet it's obligations as they accrued,
y reason Of which inability they
5ere unable to carry out their SER
ice to the public and were on March
1. 1904, placed in the hands of a re-
eiver, and on Nov g. 1905, sold by
By Exechequer Courts of Canada.
n Aug, 1910, Hodge died,