The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-11-25
UNDAY MORNING, NOVEMBER IS, 1884,

two of the trustees as well as of the tho
q well a. the dement's advantages Of his contract
with the government In danger Of being lost and
destroyed and great and rreparabs damage sustained
unless receiver appointed to take charge Of the
ships their freight, mail pay, and their earnings to
copper the Ohio and comply In ell other respects with
bill then prsys for account that Law two
Of the trustees be removed from their trust that be
referred to master to appoint two other At persons
ceivsr be appointed to take charge Of the
contract with the government and possession Of our
ships Ohio and Georgia and to finish them under the
direction OF the Court to take charge Of the Falcon
until the be supplied by another to be built
and to receive the earnings of these ships and sppro
pirate the the Court may direct that the
gitry Of the Ohio be set aside and the ship registered
In the Of the receiver Of the when sp
pointed that the contract Of the with the
complainant be snnuled and account taken OF their
advances towards the construction Of the ships and
on being refunded BY the complainant the property Of
the mortgage Of the government; or, that Q specific
Of their contract be decreed by the Court
and that If they neglect or refuse to proceed, and
forthwith construct sad ships, that the complainant
be construct and complete them at his
EXPENSE and stand the place Of the in
respect to the benefits and advantages or the contract
that injunction issue against the dssndants to
strain them from conveying away the Falcon and from
veyipg away the Ohio under the fraudulent registry
and from preventing the return Of the Ohio aud
Ss ss srsca to
with and construct and complete the ships in full
flment Of the contract with the government, ut
the cost and expense Of the complainant and out Of
funds to be furnished him for that purpose and out
Of the earnings to be received from the employment Of
the ships and also that Law, Roberts and Wetnors
the whose names the Ohio is registered
be restrained from conveying away the same, pre-
venting her return to the port Of New York and from
interfering with the receiver appointed to take charge
of her We have stated large the substance Of
the bill and grounds Of complaint, arising out of al
legged of the contract Of the nth Aug lS7
which the defendants bound themselves for consider
atoms therein stated to construct and complete the
I'VE steamships and in all other respects perform the
duties and obligations OF the complainant in his
tract with the Of the 10th OF april Of the
same ear; and also the charges and grounds of
plant sgantt the trustees II that contract and Of the
ships TO be constructed and completed ready for
ali Of which put forth as the foundation for the
summary Of the court to prevent great
and irrepsrsbe loss and damage to the complainant
TO this end we are ssked-l. TO remove two of the
trustees, and in the meantime, until others are ap
pointed In their places, according to the ordinary
of the court to appoint to take
the contract With the government and the dsfen
ships constructed in the process of construction
ana to complete the same; and Ia s other respects
to proceed under the direction of the and carry
into complete execution the terms and conditions Of the
aforesaid contracts and To eDjoin the defendants
from inter ferng with the receiver thus appointed
with the ships, earnings of the ships and from
veyipg away either the same as to prevent the
receiver from taking them into his possession. The
grounds upon which we asked to remove the trus-
tees are list. That the two, Law and Roberts who
also parties In interest the construction Of the
ships and In the funebt in all other respects of the
= IL.
cuded their cotruses McllvsiDe who represents his
interest In the ships, their earnings and In tbs proper
management of the joint concern from any particpa-
ton in the same that they have denied the complain
ante interest and right of his act In the pre-
mes and collecting and appropristing to their
benefit the earnings Of the said and moneys
received from the government for the mail service;
That they have repudiated the trust by frxudusnty
procuring the ship Ohio TO be registered in their own
names individually and not trustees excluding the
Of the other trustee, Mcllvsns; aud 80, That
they have neglected and refused TO render to the
psinsnt account OF the moneys received from the
earnings OF the Falcon and Ohio including comps
ton for the mail service, and are appropriting the
same TO their bensnt, in disregard OF the trust
These the grounds mainly relied on In support Of
this preliminary motion to remove the two trustees
and appoint q receiver; and It 10 apparent that In
order to comprehend their force and effect for the pur
pose claimed must FIRST ascertain the precise powers
and duties belonging to the trustees under the
spect to which breach and misfsasance have been
charged They prescribed In the contract Of the
18th August, and to that, therefore, we must apply
Upon careful examination Of this contract IL will
will be that the trustees have nothing to do with
contracts for building the funds to BE- provided in
the superntendsnce and drestisn in any way, In the
process Of construction and equipment. These are
obligations and responsibilities resting exclusively
upon the other defendants, which they assumed
upon themselves, and are bound TO discharge ;
the principal for which 10 their interest,"
A Eliminated in the assigned contract and
in the other earnings Of the ships while engaged In the
mail ssrvce There are other advantages provided for
main considerations for the undertaking. These de-
fsndants took the place Of the complainant the
tractor with the government so far related to the
construction and equipment Of the Ave ships; and
subject only to the superintendence and direction OF
the naval constructor In the employ OF the navy de-
psItment-a power reserved by the Secretary. The
trust remains entirely passive until the ships,
Of them, constructed and ready to enter upon
the mail Service II IL then provided that the trustess
to whom the government contract had already been as
signed shs them to be registered in their Names
and that they shall thereafter have the sole
nd nj shins nd Of m
mept &C. In the mail service In carrying freight and
psssepgersin collecting and receiving the sarnings
including the moneys received from the government
in the asbursement OF expenses and shall and
pay the pett earnings according to the directions
and in the proportion: specially pointed out In tbs
and tball hereafter consider have been un
able resist the conclusion, that according to the
pain and obvious import Of the contract Of the 18th
August the trust therein created does begin to
operate become active until the ships OF some OF
them have been built and pstey equipped, ready
for the mail service and have been accepted BY the
Navy depsrtmentthat down to that time II Is passive
ana imperative ss no power lie conferred, or duty en-
jeiDed upon the trustees In respect 70 the ships until
accepted and prepared to commence IN. mail service
There H. sbothsr view arising out Of the provisions OF
useS s..n. 70 ss ,ass1 s.eye Th.
In the ships between the parties does not arise until
they are accepted under the government contract.
there is no stipulation or arrangement agreed
upon for their empoyme out Of this service; on
the contrary, the whole sgrssment is based upon
thrown back upon IN. bands Of the defendants. aud
remain their property subject to the mortgage They
must make the best the ships are the only secu-
rity they have for the outlays In the contraction II
loss 10 sustained In the building they alone must bear
Neither the complainant or the trustees are at ell
concerned was supposed on the argument that the
advance Of the money BY the government, under the
act Of Congress- I'D Aug 1s4s, sess L. CHI 12l) opera
ted 70 vest interest in the complainant In the ships
but this IL an obvions napprehension. The only ss-
cury for the repayment Of that advance IL the ships
and In the event Of their not being accepted by the
government the above defendants stand alone
bic; for must be repaid by them or be realized W at
all cut of the ships which their property. Again
the interest of the complainant In the earnings OF the
vsss.lssnd vhich II Is admitted creates an equitable
right In the ships and direct interest In their proper
management does not begin until they are accepted
and have entered upon the performance Of the mail
service Till then, BY express provision OF the go
verDment contract compeDsstionis 20 be paid aud
the provisions In the contract 9TH the defendants re-
gustibg the receipts and disbursements Of the earn
iDgs and the duty oftbe trustees to account therefor
al ba cd upon the employ ofth vessels In this
service There joint accounts OF s'nt Interest
spotsn Of OF provided for, until that begins then this
partnership interest commences aud 10 placed IN
der the active and control Of the trustees
This conclusion H.. also supported by the general
structure msut of the articles OF agree