The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-28
SAYS SUITS WOULD
Be WASTE OF TIME
President Elliott Declares That
Company Would Gain Nothing
by Legal Action.

NEW HAVEN. Conn, oct. eI.--For the
hrst time in years the annual stock
holders meeting of the New Haven road
held an evening session. The storm cen-
tire OF discussion was about the recom-
mendation in the annual report OF the
board OF directors for the abandonment
of the contemplated suits of the COM
pany against former directors and oth-
ers believed 10 be responsible for finan-
eial losses 10 the road and adjournment
vas taken to count the stock vote after
. lengthy discussion of the issue.
President Howard Elliott stated in his
opening address this afternoon that the
directors had given the matter very
careful consideration before deciding
against the proposition and had only
on advice OF counsel decided that ii
was wise to prosecute one suit. that
against John l.. Billiard of Meriden,
which had already been brought. He
then called on President Arthur 7. Had
ley OF Yale, a director, to explain fur
the just why this action was taken.
The opposition was led by Asa L.
French of Boston, who said he repre-
sented 800 stockholders with $4,000
shares Of stock, and he and his hackers
were IN favor of prosecuting all the
suits. President Elliott stated that there
were IN the possession of the officers of
the company proxies for $40, 900 shares
OF stock. more than a majority of the
stockholders.
In his opening address Mr. Elliott en-
couragcd the stockholders of the road
by assuring them that while the road
could not think OF paying dividend
un'i it was on a firm financial basis
things were looking we'll for the com
hot IA In n..
he believed that the Improvement in
revenues would be at least 30 per cent
R~ceiSership Avrrted.
lie said that only those on the board
o! directors Of the road knew how close
the company came to going into the
hands of a receiver in April. 1914. when
there were notes to be met aggregatins
$50 900 900. the Government suit was
being pressed and the credit Of the COM
piuy was at the lowest ebb. The man
agcmcnt he said, had saved the com
pany and had been chiefly concerned
since that time with the paying of part
o. N" debts of the company. making
plans for future financing and taking
W WITH great particularly the question
as 10 whether or not they had any legal
O. moral right to sue any individuals or
assets that might have been diverted
improperly or unlawfully from the treas
utv Of the compnnv
TIL" first duty of the company, ac-
cordiug to President Elliott was to get
Or sound financial basis and the next
u d" the maximum amount OF business.
he pn Med out that the counpany WAS
UoN confronted with n situation which
PERHAPS no one expected. even six
months ago. namely large earnings due
in large, extent to the extreme activity
in the manufacture of mancrials of one
Nrd nr another needed 10 carry on the
Europeau war. As "A result. ne said. the
facilities of the comnany were seriously
taxed and the comnanv already was
Placing orders for enulnmept argrepat-
ing abp,, $1,000. 900 He pointed out
,hat u order to get ready cash the road
had a,readv sold ss6t. 600 worth of sec
worth of real estate and th4t ncyotia