The Sun.
London, England, 1859-12-28 00:00:00

elected a senator, from Kentucky, in the place of
Mr. Crittenden, will be found to be a strong man.
The following extract from a Pittsburg journal
explains the present legal position of the Pittsburg
Fort Wayne, and Chicago Railroad, of which the
bondholders made a badly managed attempt to got
the exclusive possession, through the action of the

Federal Courts :
" On Tuesday of this week Messrs. Moran and
Von Hoffman, of New York, representing certain
persons holding bonds issued by the Ohio and Penn-
sylvania Railroad Company, made application to the
United States' District Court for the Northern Dis•
trict of Ohio for an injunction and receiver for the
Pittsburg, Fort Wayne, and Chicago Railroad. On
this ex parte application the Court on Wednesday
granted the injunction, and named Mr. J. K. Ed-
gerton, of Fort Wayne, Indiana, and the vicepresi-
dent of the company receiver. As these proceedings
were without notice to the company, and of course
no counsel was present to represent them, tie Court
made a preliminary decree, with leave upon the part
of the company to move for the vacation of the
present receiver and the modification of the decree,
the whole proceedings being without prejudice to
the rights of the company. Domestic creditors
here, having judgments against the company, hear-
ing of the above proceedings. and being apprehen-
sive that their rights might be sacrificed, yesterday
applied to the District Court for a sequestrator.
The application was made by Messrs. Park, M'Curdy
ant Co., and others, and granted by the Court, ap-
vointing Mr. T. Haskins Du Puy sequestrator. This
prompt movement on the part of Park, M'Curdy and
co,, and otbers will prevent the bondholders seizing
upon the roan, to their prejudice and to the preju-
dice of this city'. If the receiver appointed by the
United States' District Court in Ohio should under-
take to obtain possessi.7n of the road in this State
we prenime our State Courts would resist to the
last extent of their authority. We understand that
the officerof the company here, not being advised
of the dispoeition of the earnings of the road by the
decree of the Ohio Court, did not feel warranted in
opposing the deoestie creditors, as they might
thereby do great injastice.
This line unfortunately runs through several States,
the Courts in which do not seem disposed to pay the
same regard to the Courts of their neighbours that
was paid in the case of the Erie receivership.
The affairs of the Chicago, Alton, and St. Louis
Railroad are in a fair way of adjustment: Mr.
James Robb (formerly of New Orleans) and Mr.
Charles Congdor, of New York, have been appointed
by the Federal Court receivers, under an agree-
ment with the bondholders, by which certain claims
are recognised as entitled to immediate payment
out of the earnings ; and there is now every reason
to hope that the earnings may soon be made appli-
cable to the bands, unless the hostility of some
leading New York creditors, who have up to this
time succeeded in thwarting the efforts of the mort-
gage creditors, shall continue to prevail. I can
scarcely think that such will be the case.
There has been a brisk discussion about Erie
affairs within the week. The second mortgage
trustees, notwithstanding the expression of a wish
by the majority of the bondholders that no suit
should be begun, have commenced proceedings to
foreclose that mortgage. Had they remained quiet
the mortgage would undoubtedly have been paid off
by the company. Their action, however, may
render it necessary to make the payment through
them. I cannot see that it will make any other
difference. At any rate, it results that it is abso-
lutely necessary to make immediate provision for
their payment. There is a scheme maturing in the
I street, which will probably soon be brought before
the board of directors, to authorise the opening of
a subscription by holders of Erie stock and secu-
rities, to pay off that debt. The whole debt is
4,000,000 dols. The proposition will be to take
third mortgage bonds at 80 to that amount, and
the balance in fourth mortgage bonds at par. If
carried out, this frees the company of all debts
except the fourth mortgage bonds and the 75 bonds,
and the interest in arrear, and reduces the directors'
plan to a provision for these liabilities. The work
upon the Long Dock Tunnel is steadily progress-
ing. The means provided by the contract with
Mr. Stevens will, it is estimated, enable the com-
pany to complete the tunnel by the Ist of April.
1,000,000 dollars judiciously spent between now
and then upon the piers and sheds and is the pre-
paration of a road bed and track to either end of
the tunnel will, in that case, enable the receiver
, by the 15th "of April to run his cars to the end of
, the pier, and bring his freight, as well as passen-
, gem., directly to tide-water, opposite to the city of
,1 New York.
Le