The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-07-18
LATEST PHASE OF THE NEW
HAVEN GRAFT INVES-
TIGATION
DIRECTORS TO
STAND SUIT
Plaintiffs Allege Loss of $1O2,.
100000 and Ask Damages
Three Times That Amount
(By Associated Pressl

(By Associated Press)
Boston, July ia restitution suit,
whereby minority stockholders seek to
compel former and present directors
to restore to the treasury Of the New
York, New Haven and Hartford rail.
rOnd company. approximately. $102,.
OOO,OOO alleged to have been illegally
used In building up the system, was
begun today In the supreme court.
The complaint alleges that losses
resulting from the acquisition of the
Poston and Main trolley and steam
ship properties by the New Haven
amounted to s102, 100000 and that un-
IT,, federal antitrust act, the New Ha-
ven company is entitled to recover
from the defendants three times that
sum. or $306,000,0O
The plaintiffs, who are trustees Of
the late Ola Bull Vaghan's estate
and own fifty shares of the capital
stock asked, for receiver to take
possession OF all claims in favor of
the defendants, but not to Interfere
with the administration Of the cur
rent affairs Of the New Haven COM
pany.
The suit is against the corporation
and the directors In office from 1904
to 1909. John l.. Billiard, who is said
to have derived a profit, Of 50. .ena
from transactions with, the company
.Was not made n def ndant because he
was not a direct s1a' - period.
Boston. July Il. THE appointment:
OF a receiver, special master. or other
oificiaI to prosecute claims aggregat-
. Ing $S06.000,000 against defendant d.
rectors and estates of directors of the
New York. New. Haven and Hartford
railroad is asked In suit filed in the
supreme court today. The action is
brought by Whipple, Scars & Ogden,
representing minority stockholders Of
the company.
, The suit in which the attorneys re-
Gently demanded that the directors
Join, Is designed to force restitution
from those responsible for funds ailes-
ed to have been illegally expended
In building up the New Haven sys-
TEN.
Judge Brady issued an order of no.
tice returnable next Friday to show
caasc why a receiver should not be
appointed and why an Injunction
against the disposition of the defend
ants stock should not be issued.
Among the defendants, who include
various New Haven directors since
1903, and estates of deceased directors
are:
William Rockefeller, Charles NJ.
Pratt, Lewis Cass Lelyard. H. Nick.
Twomblcy. George McC, Miles Z, George
j. Brush. James 8. Hemingway, James
II. Elton, Henry X. McHarg, Rebert
W. Taft, William Skinner, Charles S.
Mellen, Alexander .ochrane, j. P.
Morgan estate, Edwin Miller estate,
I. Dey. Warner estate.
In addition. the plaintiffs name John
l.. Billiard, George f. Baker, T. De-
Witt Cuyler, Edward Milligan. F. T.
Maxwell, Theodore r.. Vail, s. w.
Winslow. Laurence Afinot, Samuel
Rea. Morton Z. Plant, Dev. H. Warner,
John T. Pratt, Howard Elliott. James
l., Richards, WIN. Crane, A. T. Had
ley, and y. II Hustis, as having been
directors. since 1909, but, ae to wheth-
Z fer their failure to cause the road to
institute restitution suit has made
them liable on account OF negligence
and violation OF flduciary duty, the
plaintiffs state they are not advised.
The litigation, is. I'M the form of an
equity acton entered by. the attorneys
as trustecs under the will Of Ola Bull
Vaughn. t,. VS.
The bill OF complaint declares that
the defendants, on account of breach
Z Of directors' duty, chiefly through
causing the. New Haven to- acquire IL
legally Its Boston and Maino.I trolley
and steamship properties, nre bound
: to pay TO- the New Haven $162 ,000, ,000