The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-04
NEW HAVEN HEADS
SUED FOR MILLIONS
Stakeholder Demands Account
ing Of Morgan Estate, Re-
ceivers and Directors.
HELD PERSONALLY LIABLE
Complaint Charges Attempt of
"Triumvirate" to Build
Up Monopoly.

A stockholders suit wns f'led in the
United States District Court yesterday
asking that tho estate OF ]. p. Morgan
and the receivers and officers as well as
some OF the former receivers OF the New
Haven railroad be forced to mako an
accounting for mo many millions of
dollars alleged to have been misappro-
priated by the New Haven in acquiring
subsidiary railroads, steamship lines and
trolley lines
The complaint asks that a receiver be
appointed, not for tho New Haven cor
poration. but to take charge OF tho dis
bursement to stockholders OF any moneys
that may be recovered by the New Haven
stockholders through the suit. The action
Is virtually designed TO hold tho directors
responsible according TO the suggestion of
the Interstate Commerce Commission In
it's report on tho New Haven road re-
Gently.
Holds Directors Liable.
The directors, the complaint alleges
were we'll aware Of the Significance of all
tho acts by which they permitted the mis-
approp q tons Unless restrained by u
court injunction. the complaint says the
directors are now likely to authorize the
further diversion OF $3.64s, 600 of tlbs
funds OF the road in order TO make mp
deficit in the fixed charges and operating
expenses of the New York, Westchester and
Boston Railroad and the Councillor, ana
Rhode Island trolley lines. The compla int
alleges that these corporations are now
insolvent and that tho disbursements will
be a total loss 10 the road.
In addition the complaint asks that
M TOD Ia hA al n
OF other transportation companies be de-
clared null and void,
The complaint lays the financial DIM
culties of the road to the door OF what
II styles the "triumvirate." consisting Of
the late j. T. Morgan, Charles s. Mellen
and William Rockefeller who according
to the complaint. consplred in violation
" the Sherman law to secure a monopoly
Of transportation facilities in New Eng
land TO the detriment OF the New Haven
stockholders whose money was used in tho
con seQuent purchases.
s7,SOO,OOO Profit Charged.
The firm of j. r. Morgan. during the
life OF ts founder. the complaint says
profited to the extent of at least $500. 900
in the Misrepresentation OF New Haven
This money was "set or to the
estate OF the late J. T. Morgan after the
latter died, tho complaint says. For this
rea son the present j. y. Morgan, Lewis
rass Ledyard. William G. Hamilton and
Herbert c. Satterlee. executors under the
will Of the late J. p. Morgan. are named
Is defendants.
The plaintiff In the suit is T1sla D.
Clark. a resident Of New Jersey, who
owns twenty shores OF the capital stock
" the New Haven company. He filed the
suit through his attorney. Thomas &.
Spelling OF lis Broadway. The main de-
'endants are the New Haven road the
estate OF J. p. Morgan, William Rookie
feller. Howard Elliott and other direc-
.ors and officers OF tho road. who have
been named as defendants In the Govern
nent's dissolution suit The former d.
'ectors named are Edwin Miner. Ma
haniel Thayer. Charles s. Mellen. II.
Mex. Twombly. George y. Miller. r. W.
Cheney, J. II. Whtttemore. T.. ID. Robbins
and Lewis Cass Ledyard
The directors, according TO tho COM
,lalnt acquiesced In tho distribution Of
'lO.o0O,000 10 agents OF the "triumvirate"
Who aided in carrying out the alleged mo-
'opol!stic conspiracy. such as politicians,
managers, polltica! bosses, GO
unidentified emissaries, dunn
mics press agNnts, publishers OF news
papers. secret service men. lobbyists and
attorneys.