The first real Lithuanian mussar style Yeshivah in America was started by HaGaon Rav Yehudah Levenberg and HaGaon Rav Sheftel Kramer in New Haven in the 20's.
Eventually it moved to Cleveland along with Rav Levenberg's new Rabbanus position and became known as "Yeshivah D'New Haven, Ka'ays B'Cleveland". During this period Rav Ruderman (Rav Sheftel's son-in-law) joined the Yeshivah.
When Rav Levenberg's new position did not work out and he was offered his old position back he wanted to move the Yeshivah back to New Haven. Rav Sheftel felt that this would be detrimental to the Yeshivah and the first Mahlokes in a Yeshivah in America was born!
Rav Leizer Silver sat as the Av Beis Din and the decision was reached to split the Yeshivah.
Rav Sheftel continued with Rav Ruderman and half of the original Talmidim. While on a fundraising trip to Baltimore, Rav Ruderman was offered to start a Yeshivah there. He asked Rav Sheftel permission and Rav Sheftel gave him some of his top students. That is how Yeshivas Ner Yisrael was born. The New Haven Yeshivah Ka'ays B'Cleveland did not last much longer.
I just heard another postscript to this saga:
Some time after the Din Torah, one day when Rav Sheftel was learning in the empty Beis HaMedrash, a young man walked in. Rav Sheftel gave him sholom and asked him his name. He replied "Moshe Feinstein". (!) Rav Sheftel asked him what he was doing in Cleveland and he replied that he had accepted the position of Rosh HaYeshiva in that Yeshivah. Without saying anything about his position and authority in the Yeshivah, Rav Sheftel picked himself up, took his seforim and left the building. When Rav Moshe found out that he had been used as a pawn in a low-down trick, he left and went on to become the Rosh HaYeshivah of MTJ.