The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1914-07-23
MILLIONS ARE ASKED
OF NEW HAVEN ROAD
Lawyers for Estate Charge
Money Has Been Looted.
SUIT TO START ON JULY "a
Trustees for Late ole Bull Bring Ac-
ton In Supreme Court sin Order
to Enforce Certain
Liabilities.

Boston, July 1S.-The threatened
suit against the New York, New Ha-
ven & Hartford railroad and its d.
rectors to recover millions of dollars
alleged to have been looted from the
stockholders was filed in the Supreme
court by Sherman L. Whipple OF tina
firm OF Whipple, Sears & Ogden. The
action is a bill Of complain brought
by the trustees under the will OF
Olea Bull Vaughan, late OF West Lee
banon, Maine. They are owners OF
SO shares of capital stock Of the
New Haven railroad which belonged
to the deceased daughter of the fa-
nous violinist.
They bring the suit "in order to en-
force certain liabilities which they
are informed and believe have &C.
crued in favor of the corporation
against certain of its present and for
mer directors which claims said direc-
tors OF the corporation have hitherto
failed and neglected and now decline
to protect. They bring this suit in
behalf of all the stockholders Of said
corporation who may desire to join
therein and become parties thereto"
The suit is returnable July "a, when
the defendants are ordered to appear,
show cause why a master should not
be appointed to take charge Of the
New Haven railroad and its affairs
and attachments filed.
Noted Men Defendants.
Among the defendants are Messrs.
Rockefeller, Morgan, Mellen, Brush,
Twombley, Taft, Elton, Hemingway,
Skinner, Hamilton and others, pres
ent and former directors of the rail.
road.
Among other allegations In the suit
are the following:
That about 1904, directors Rookie
Teller, Mellen Brookes, Barney, Skin.
ner, Miner. Brush Twombly, Taft,
Morgan (senior), Miller and /. Dew.
Warner, conceived and entered upon
a plan and scheme to effect a monop-
oily OF all the transportation COM
panies and systems in the New Eng.
land states" that in execution OF
this plan they negotiated for com.
petitive steam and electric railways
and steamship lines, and that, In line
with these acquisitions, these direc-
tors and those associated with them
took about 5000, O0O, 900 from the New
Ravens treasury.
That of this total, approximately
100000 900 has been expended on
street railways, as contrasted with
only $56,000000 fair value thereof,
representing $46,000,000 loss.
That approximately $2S000,O0 has
been taken for steamship lines against
a fair value Of not over $4,000, 900,
representing $l6.OOO.OOO loss.
Bought Boston and Maine.
That about May, 1907, defendants
acquired with cash or its equivalent,
belonging to the New Haven, from
and through defendants Ledyard and
Pratt, who were at the same time
directors OF the Boston and Maine,
about 10000 shares, or practically
a controlling interest In the Boston
and Maine, which was operating
steam road competitive in certain ter.
ritory with the New Haven, especially
in respect to traffic with western
states. A total expenditure OF about
$32,000,000 of Boston and Maine by
the New Haven has been caused by
the defendants and, as its Boston and
Maine shares are worth not over $40.
100000 It has lost approximately 1922.
1000.
The defendants caused about $37,-
500 1000 New Haven funds to be ex-
pended in the New York, Westchester
and Boston proposition, against
value not over s19,500,OO0, represent
ing a direct lose of about $4,000 900.
That in each and every one OF the
transactions defendants failed to exr
srcise sound judgment and reasonable
and prudent discretion to that degree
which the law requires of directors,
especially of directors of a public
service corporation.
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