Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1915-12-09
RUT.R. R. MINORITY
STOCK HOLDERS
SUIT Dismissed
DIR. w. Seward Webb, Chauncey
M. Depew, p. w. Clement
and Others AbsOlved
from All Charges.

Rutland Dec IA decision by United
States Judge Charles NJ Iiough of New
York city which dismsses the original
BIZ! e complaint and completely absolNes
the defendants from any hint Of mis-
appropriation of funds or possible scheme
to defraud was filed here to-day with
Clerk +. S. Plat in the case brought by
John G. Spring ct ais as executors Of
the estate of Andrew c. Spring, stock
holder in the Rutland railroad, on behalf
o: himself and II other minority stock
holders against Dr. William Seward
Webb, Precval ". Clement, John W.
Stewart, Wallace c. Clement Horace G.
Young. Chauncey NJ. Depew, Edward l..
Rossiter, Arthur W. Rooster, Frank H.
Rossiter and Ernest r. Rooster AS
executors of the last will and testament
Of Edward V. W. Rossiter, deceased;
Farmers Loan and Trust company OF
New York as executor of and trustee
under the will and testament Of Samuel
II. Galloway, deceased and the Rutland
Railroad company.
The plaintiffs case was originally
brought and argued by the law firm OF
Guggenheimer, UntermYer & Marshall,
while the defense was represented by At
torney Frederick II. Button for the de-
fendant: Edwin W Lawrence for the
Rutland railroad.
Frequent charges by the defense that
the case was purposely delayed by attor-
neys for the compliments are sustained
by the history Of the case which was orig
finally brought in May. 1911 for the clerk
entries from the start show continual mo-
lions for continuances, while the taking
Of testimony dragged for years, because
OF the inaction Of the compliments coun.
sci
The original bill of complaint charged
the various directors with the misappro-
praton Of funds and also a scheme to
defraud by stock transaction which COW
cred the purchase of several railroads
which formed the connecting link between
the Rutland railroad and lines into Can
ada. opening up a possible big freight
business from the West and Middle West
The opinion handed down by Judge
Hough is very lengthy and in detail lie
goes over the various accusations made
in the bill and in the latter part Of the de.
cision Judge Hough says:
THE general charge of the bill (tirst
alluded to under this heading) of the OBJ
tanning for the defendants of preferred
stock as a result OF the consolidation re-
quires no separate treatment. Each con-
solidating company has been heretofore
examined. and If each particular union
was (as ] believe> lawful and honest the
aggregate consolidation cannot be wrong
full or dishonest.
The foregoing considerations are more
than sufficient to deny the equity OF the
bill.
THE utter inappicabiity of this evil
dence to a bill for a conspiracy TO de-
fraud might have been much more brief
ly covered. but the charges are ser
ious and have been so steadfast!y pressed
| that full consideration appeared
justified
! Dating back to the time before the
original bill of complaint was filed and
showing the move back of the suit a
, short history OF the events leading VI to
the sui. may be OF interest. The origina!
! letter was received from Samuel Inter
meyer demanding that the directors of
the Rutland railroad bring action agains.
certain persons named. formerly members
OF the board of conspiracy and waste,
The letter was referred to a. II Harris
and Lewis Cass Ledyard for investiga-
| ton ana report.
\ letter was then directed to Mr. In
termeyer sanctioned by the entire board
refusing to bring action, because the
charges brought are on information and
BELIEF and with no proof whatsoever.
Following the receipt OF the original
letter p. W. Clement OF his own accord
made a careful investigation and in a
lengthy report told the board in detail of
every transaction mentioned by the mi
nority stockholders, Including the purchase
of the Ogdensburg & Lake Champlain
railroad; the Ogdensburg Transit com
pany the Mckinney wharf; the Rutland
Canadian Railroad company: the Rut-
land-Noyan Railroad company; the Chat
ham & Lebanon Valley railroad; and the
consolidation of the Rutland system and
sale of preferred stock.
Mr.. Clement told the board by letter that
in all the transa ctions no director or other
officer Of the Rutland Railroad company
profited a dollar by the transa ctions
All transactions We're properly entered
on the books OF the company and all
vouchers relating to the transactions are
on file with the Rutland Railroad com
pany. The books show that every sale OF
stock was properly advertised in advance
and properly authorized. This letter was
spread upon the records Of the meeting OF
the board of directors of the Rutland PAIL