The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-11-01
END OF A GREAT LAW SUIT.
The Commercial bank OF Upper Canada
VS.. The Great Western Railway.


The Toronto Globe has the followng:-
at is a matter of sincere qualification that the
long-pendlng case between the Commercial
Bank and the Great Western Railway has oeea
amicably settled. That two such importaut
corporations should be at loggerheads for SIX or
seven years. fighting out expensive ana IIuiViess @
lawsuits was a matter which conGerne9 tne te
public at large as well as the Oahh ts anu anu tne ne
railway. As regards the bank, tne enecs OIL
the delay, eoupled with the ,douDt as 10
the result, was certainly injurious; rus ooo Inc
amount of advances was apou! Si,oOg'oVOLa
sum which no institution could afford to be
out of for number OF years. The result
was that the operations OF the bank were
somewhat curtailed, and shareholders had to
witness the gradual fall in the value of their
shares In 1852 just before the trouble with
the Great Western Railway began, Commercial
Bank stock was up to about liz. Since then it
gradually fell, and now stands at about 73. 1t
has rallied at various times under the influence
of what was expected to be speedy settlemen 8,
but which also proved delusive. AS late as last
May the stock stood at 81 in the market, and
some private sales reached 30. With the final
adjustment OF the suit against the Great western
especially as a satisfactory arrangement has
been made-it may be expected that the stock
will speedily recover itself. The position of the
Commercial Bank is now most satisfactory, and
having got rid Of this raj way trouble, it will be
able to pursue untrammelled that career of use
fulness and enterprise which it has so long
maintained.
''As it may be the last time that there will be
occasion for direct reference to this matter, it
may not be uninteresting to recapitulate the
chief points of the dispute. In 1856 and 1858 the
Great Western Railway Company became so
impressed with the necessity of securing the
completion and the control of the Detroit and
Milwaukee line, as feeder for their own, that
they made arrangements with the Michigan
Company to complete and equip their line.
Money was to be advanced for the purpose, but
the expenditure was to be subject to The Great
Western Company. That done, the next step
was TO get funds. At general meeting of the
shareholders in England in 1890, n iOon of
tnr1t. opfhOf IN no nnn
tracted; and the year following further loan
Of flO0, ,OoO-all to be applied to the Detroit and
Milwaukee line
ferred their accounts from the Bank of Upper
Canada to the Commercial, and shortly after
opened negotiations for the purpose OF obtain
ing the funds required for the Detroit and Mil
waukee. On December 80 the account was
opened, and advances continued TO be made
up to the end OF December, 1859, just two
years, when the bank claimed a settlement, and
until that was had refused to make further ad-
Vances. The Great Western demurred to pay
ment, alleging that the Michigan line was liable.
Want of proper, written guarantees and some
confusion in the account keeping, rendered 1t
somewhat difficult 10 fasten legal liability on
the Great Western, and efforts at settlement
proved of no avail
Bench in May, 1862, which resulted favoIably
for the bank. The actual amount of over ad-
vances, we may state, that had been made when
the account was closed in December, in 1859,
was very nearly $3.50, 900. The railway COM
pany appealed against the decision, and our
Court of Error and Appeal reversed the decision
of the Queens Bench. The bank dn turn APP
pealed, and the matter was taken to England,
where after some delay, the Court in the main
affirmed the conclusion of the Canadian Court
of Appeal, but.authoriZed new trial to deter
mine certain facts. Instead of pursuing the
matter further, the parties, after protracted but
concliatory negotiations, agreed to settle the
matter, and they have done so. Excepting
then, point of detail which will not disturb
the arrangement, whichever way settled, the
great million and half bank suit,' of which we
have heard SO much, is now finally set at rest.
1.-THE precise details of the settlement have
not been officially made known; but the main
features are pretty well understood to be as
follOWs:-The bank is to receive the full amount
of its claim, principal and interest, amounting,
we believe, to nearly million and half of
dollars. 1t gets this in the shape of twenty
year bonds of the Detriot and Milwaukee Rail
road Company An Instalment of $780, 600 is to
road towards the redemption of the bonds, and
interest at the rate of seven per cent. paid on
the balance. 1t appears that the Great Western
Railway Company have a very large claim
against the Michigan road; but they agree to
give the Commercial Bank precedence, SO that
until the latter is paid of, the Great Western
will get nothing, except interest, as to which
with the bank, payment to both being in pro-
portion to the respective amounts of their
claims. The net profits of the Detroit and Nil
Waukee last year amounted to between $500, 900
and S4OO 600, and there is every reason to expect
that the trathc will continue to increase. With
the contlnuea prosperity of the Michigan line,
us ponds VIII command good market value
but whether they do or not the earnings of the
road are pledged to the bankn