The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-10-27
Superior Court.

Der as.-Charies Lohman 70. The New York and Erie
hanroaa Con- This was an action of trover
bearing interest at six per cent The following are the
iac-the company for some years previous to ls44 had
these debts they gave their bonds psys
Bile in lsa7 with interest at six per cent They we're Of
and amongst others the paip the ain
bonds in dispute IL will be proper here TO mention that
and that they under law Of the state consol;stsS !;
into 1900 and the stock then called
stock by resolution dated the sh of November Is44
which was entered on the company's books 1t was re-
solved that the interest payable the nds should be
added to the consolidated stock, ard that this stock
should be issued TO eny of the bond holders who might
wish it in lieu of their bonds Some time in the latter
part of the year lsa5. Mr.. Jacob Little and others
entered into contract to sell and deliver 10
certain brokers in Wall street. very large number of
sharsof the consolidated stock fer beyond the number
really in existence, and deliver the same within
given time that is to say 60 days The purchasers fad
ing that Mr. Little had sold than he could by posi-
bty deliver, determined lin Wall street langusge) to
corner him. and to effect their purpose they up the
consolidated stock to $3.50 share, something very
this sum- and made peremptory call for the delivery Of
the entire number of the shares the Sd Of January
isls Mr. Little, who at this time had $4,000 worth Of
tho companys bonds, and director Of the compa
natives either pay $3.50 for each of the shares he had
SOLD over and above what he could produce give up
out of the dle%ms % nMse o. plan 10 &c.
treasurer OF the company, and said he would give him
the $40 coo worth Of bonds he would issue stock and
give II 70 nm Little, to make good his contract at the
board OF stock brokers' the Sd of January. Hero 1t
proper 70 mention that on the 9Th of December, l645,
was and SO entered it the companys books,
that the resolution Of ls4a should be repealed
MI Brown, and the secretary, in compliance with MIR
Les request issued the requisite amount Of shares,
and marked them in the margin stock equal to conso
dated stock" On the LIST of January is4S the plain
tiff gave an order to Messrs VIM. John O'Brien to
purchase sixty shares Of the consolidated stock
him On the ID of January one Of the latter gentlemen
went to the companys Office and asked if he could get
sixty shares of the consolidated stock He was answer
ed that he could or stock equal TO it, upon which Mr.
skadu nnld he
transferred upon that book and the reply the
affirmative. Mr. OBrien then went away, and il tn
course OF the day returned with the plaintiff ana after
some further negotiation between the parties and enter
ing into written agreement that plaintiff did not like
next day. and his bonds would be returned him the
transaction then closed Certificates for sixty shares
consolidated stock" for which he gave his receipt. and
also gave the six bonds in ment the meantime it
difficulty about the stock and it further appearing
that the officers OF the company refused to transfer
the transfer book OF the consolidated stock, but on
separate book procured expressly for the converted,
or the stock equal to the consolidated stock the conse
quence was, became deprecated in the market and
could only be sold at 80 the I'd and Sd January where
the consolidated stock sold the evening Of the ID
for s. and 95 MIR Lehman finding that he could sell
Marsh the Treasurer and Secretary Of the Company,
athafpast three o'clock the Sd January and demand
ed back his bonds upon which Mr. Brown replied that
he too late he should have called at helfpast two
O'clock that being the hour stated in the agreement,
and to take back the stock and return the bonds
Mr.. Lohmsn now brings his action 10 recover their
value.
The defence is two.fold-6rst, that the plaintiff was
sally appiized of the nature of the stock he got full
description oft being given in the certificates and also
in The receipt which he sgned and next that the plain
lid did not es he bound to do by his agreement call
ct halfpest two o'clock The last defence is admitted,
but to the first defence, plaintiffs counsel replies. By
the companys cha Ter directors only are authorized to
issue stock and nasmuch the Secretary and Trea-
alone issued the stock in question without the
knowledge and direction of'e directors, is Illegal and
therefore worthless Adjourned 10 this mo ming.
For the plaintiff, Mr.. F. B. Cutting for DEFENDANTS,
Messrs. Foot and Davies.