Omaha daily bee., 1921-11-29
Compromise in
Crande Rail
Suit Expected
Denver and Rio Crande Direc.
tors Sued for Many Mil
lions of Dollars By
Stockholders.
BY HOLLAND.

A little over year ago some OF
the stockholders in the Denver and
Rio Grande Railroad company came
together so that they might organize
stockholders protective commit
tee. Benjamin b. Odell, formerly
governor OF New York, was asked
TO accept the chairmanship OF this
committee. Although much occu-
pied as receiver for large industrial
corporation, Governor Odell did for
a while serve in this capacity. AT
that time it was said that If suit
was brought, and one has within a
day or two begun in this city, and
pressed to trial some Of the evidence
that would be offered will be found
more sensational than any other
testimony heretofore offered or in
troduced in a suit against any Ameri-
can railroad company. Because OF
the magnitude OF the amount in
volved and probably also because oi
the high character of some OF those
who were associated with the Denver
and Rio Grande and the Western
Pacific railroad, an earnest attempt
was made TO bring about compro-
mise of some kind. A veteran
financier, not now actively engaged
in business, was asked to organize
a committee to which would be SUBJ
mittcd all the facts and allegations
lso that in that way compromise
might be reached.
Declined Position.
He consented provided he was per-
mitted to select for that committee some
men OF unimpeached business and per-
sonal character who also possessed high
qualifications for sitting statements and
not permitted to do this. and he there
fore declined to take part in any efforts
to secure compromise and the attempt
was abandoned Then it seemed inevi-
table that suits would be brought against
individual stockholders and these might
amount in the aggregate to 5000. 900
About that time certain minority
stockholders in the New Haven Railroad
company feeling aggrieved at action
taken by the company. decided to sue the
directors. the aggregate amount being
fixed at many million dollars
New Haven Compromised.
The directors OF the New Haven Rail.
road company, who had been sued by
minority stockholders, offered to com
promise and as the offer was accepted.
each one paid over large amount Of
money.
Some Of the men of prominence who
have been made defendants are George ].
Gould, Kingdom Gould. Alvin X. Krech.
James H. Harding. George G. Haven and
Harrison williams. But there are others,
only little less prominent, who have
been made defendants. The litigation Is
due to the charge that certain persons
who were directors OF both the Western
Pacific and the Denver and Rio Grande
railroads so acted as to destroy the H.
nancial strength OF the Denver and Rio
Grande and improperly to secure for the
Western Pacific large amount OF prop
erty which was in the ownership Of the
Denver and Rio Grande.
Trustee IL Involved.
Among the delegations Is one that q
financial institution which was trustee
for certain Eecurities Of which tho Denver |
and Rio Grande was alleged to be the
owner was unfaithful to that trust and |
assisted In the manipulation by means OF |
which the Western Pacific Railroad COM
pany secured property which was In the |
lawful ownership OF the Denver and Rio
Grande.