The sun., 1916-08-31
$160,o00,Ooo ASKED
IN NEW HAVEN SUIT
Stockholders Restitution Ac-
tien Begun Against Former
Heads Of Roads.
CONSPIRACY IS CHARGED
Huge Expenditures Enumcr-
ated in COmplaint-Morgan
Estate a Defendant.

-
A stockholders restitution suit was
begun in the United States District Court
yesterday to recover from the estate Of
tho late J. l.. Morgan and some OF the
former officers and directors Of the New
York. New Haven and Hartford Rail-
road Company more than 100000. 900 Of
the funds alleged to have been wrong
fully diverted from the treasury Of the
road between 1890 and 1914. and used
20 nance n conspiracy to build up n
railroad and water transportation mo-
nopoly. Tho plaintiffs are Ave Massa
chusetts stockholders who hold between
them $1.250.00 worth OF stock.
The complaint In the suit-which In
point of damages is the largest ever filed
In the Federal courts here and probably
the largest ever brought in any court
tn the country with the possible excep-
Zion OF the litigation between the states
of Virginia and West Neutrality-suspicious.
. number OF sensational allegations as
10 the open handed largess with which
tho defendants. or "conspirators, as they
are called In tho complaint, scattered
millions OF dollars throughout the New
England States and In canada. Fore
most among these allegations is one con-
corning the expenditure OF more than
$4,000. 900 in influencing Legislatures and
public officials.
Huge Expenditures Charged.
was spent to keep secret the details OF
the Now Haven-Grand Trunk traffic
agreement and to shield Charles s. Mel
len, former president Of the New Haven,
who was indicted for that traffic deal :
hat $l.500.00 was paid to writers,
magazines and periodicals in a publicity
campaign designed TO deceive the pubic
and the stockholders as to the real aims
OF the conspirators that $1,000, 600 was
paid In the guise OF commissions to
banking houses in which the defendants
were financially interested that $780,
900 was expended in harasslng litigation
designed 20 drive competitive corpora
lions out OF business. and that O.000.-
900 was lost to the company through
acts OF the defendants which made the
securities OF the road unavailable as
savings bank Investments.
The plaintiffs are Edwin Adams,
Julius c. Morse. George C.. Fisk. James
NJ. Ray and Mary NJ. Clark. Their chief
counsel Is former United States Attorney
Henry A. Wise. Assisting the latter are
Asa p. French, Arthur Berenson. Francis
2. Garland. Bernard Berenson and Frank
~. Swsrksr. who "a a speciai Assistant
United States Attorney-General went all
through the Government proceedings
against the New Haven and was the
backbone OF the prosecution In the trial
OF the former New Haven directors h
were charged with conspiracy TO violate
che Sherman aw.
In the criminal proceedings some OF
the defendants Were acquitted and the
fury disagreed as to the others. Mr..
Gwacker's appearance as counsel In the
civil suit In taken by Some as an indica-
ton that the Government has abandoned
its plan OF retrying the defendants in the
criminal proceedings in whose cases the
Jury disagreed.
The Defendants.
The defendants in the restitution suit
are William Rockefeller. CHARLES NJ.
Pratt. Lewis Cass Ledyard. Geor,e Ma
oulloch Miller. James S. Hemingway. A.
Aeaton Robertson, Frederick i. Brew
ster. Charles F. Brooker. James :. Elton.
Henry Il. McHarg. Edward ID. Robbins.
John l.. Billiard. Robert W, Taft and
Charles =. Mel!en. and j. Pierpont Nor
gan. Herbert l.. Satterlee. William p.
Hamilton and Lewis Cass Ledyard as
executors OF the will OF the late J. +.
Morgan, and Florence A. v. Twon.bly as
oxccutriS under the last will and tesla
ment OF Hamilton Nick. Twombly.
The New Haven company Is named as
. defendant because. az the plaintiffs set
forth. Of the refusal Of Its officers and
dlrecto,s to bring u similar suit to hold
the defendants named financially rsspon-
sible for their alleged parts In the so
called conspiracy. a letter dated July 10.
1914. to the directors OF the company In
which the executors Of the estate OF O!ea
Bull Vaughn demanded that such a resti-
tuition suit he started Is cited In the
complaint. which adds that j. H.. Hustis.
then president, Acknowledged receipt OF
the letter and replied that the matter
had been referred to Moorield Storey.
one Of the New Haven attorneys. Moth
ing. the complaint adds. was ever done
about the matter.
The allegations IN the present suit are
based on evidence taken in the Sherman
law criminal prosecution and In the
course OF the preceding hearings before
Investigations made BY various state In
dustrial and railroad commissions. The
Interstate Commerce Commission de-
clared hat the amount of money OK
pended by the New Haven outside OF its
legitimate sphere was approximately
$2O4 .000. 00o. Therefore. after an ac-
counting has been made. the sum asked
In the stockholders restitution suit may
touch tht figure.