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Show r MINORITY STOCKHOLDERS BRING SUIT AGAINST NEW HAVEN CO. Action Is Filed in Supreme Court by Attorneys Proceedings Designed to Force Restitution of Funds Alleged to Have Been Illegally Expended in Building Up Railroad j - " System Appointment of Receiver Is Demanded. CLAIMS AMOUNT TO $306,000,000 . lAttorneys' Action "In Behalf of Themselves and All Other Stockholders of Corporation Who May Become Parties" Funds Illegally Withdrawn, $162,000,000 $ Losses Sustained, $102,000,000 Complain- I ants Entitled to Recover Under Federal Law. Boston, July 17. The appointment f a receiver, special master or other efflef.il to prosecute claims amounting to $306,000,000 against defendant directors di-rectors and state officers of the New Haven road is asked for In a suit filed In the supreme court today. The hrCon is Drought by Whipple, Sears ' and Ogden, representing minority cwners of the stock The suit in which the attorneys re- ceuth demanded that the directors Join, is designed to force restitution from those responsible, of funds alleged al-leged to have been Illegally expend-rd expend-rd in building up the New Haven system. Receivership Demand. i Judge Brady issued an order of no tice lf lurnable next Friday to show eiuse why a recpiver should not be oppo;ntrd and why an injunction lagviinst the disposition of the, defendants de-fendants stocks should not be Issued. The litigation is in the form of an equity action entered Into by the at- 1 torney as trustees under the will of Olea Pull Vaughn They own fifty hares of New Haven stork and bring ! the i.etion "in behalf of themselves , end nil other stockholders of said cor poration who may become parties " The bill of complaint declares that the defendants on account of breach of director's duty, chiefly through causing the New Haven to acquire j Illegal!) its Boston &- Maine, trolley fttid steamship properties, are bound to eiv to the New Haven S162.000,-000 S162.000,-000 withdrawn therefrom illegally.'' 1 It is alleged that the losses result ing from these acquisitions approximate approxi-mate M 02.000.000 and that under federal fed-eral finti-trust laws the New Haven 1 entitled to recover from the defendants de-fendants threefold that sum or $3u6 .00 0,000. Government to Begin Suit. "Washington, July 17 After two hours conference today between At-tcrnr At-tcrnr v General McRevnolds and T W. Gregory, special assistant in charge of ihr New Haven case, it seemed practically certain that negotiation has :;iled and the department of justice jus-tice would begin its Sherman law fcuii o dissolve the New Haven system sys-tem within the next few days The attorney general and Mr. Gregory had before them official notice no-tice from the New Haven board of dl factors that it cannot accept the terms imposed by Massachusetts on t!;e sale of its Boston and Maine railroad rail-road stock. Department officials are ma id to now consider a Sherman law nit their only course |