, 1866-10-27
END OF Il GREAT LAZY SUIT.
The Corr 1crcinl Bank Of Upper Cam
n&1n W. The Great Western Railway
"A TtCtrry fpr the Former.
IErnfo 3he Toeaatra <slo},.. 0ctohns %


ndn ~. The Great Western Railway
"A ytct~ry for the Former.
rFroEa the Toronto Globe, October :3.1
1t is matter "f sincere qualification that
the long Z, ding case between the CONNER
cia1 Bank and the GpcAt Western Railway
hns been anieably settled. That two such
IN rns:ant corporations should be at logger
Leads for six or seven years, fighting out cx-
rcrsiyc and lruit!css lawsuits, was a
matter which concerned tho pub
lie at large. as vel! as The bank and
effect of the delay, coupled with the doubt
as to the result. WIS certainly iujurions. The
amount OF advances was about 81 900, ,OO0-a
snm which lii Institution could aiEold to be
out Of Tor humber. Of yeaFs. Tue result
somewhat cnrta lled. and SHAREHOLDERS Ind 10
witness the Gradual iall III the value OF their
elares. In 1s5!', Just bcfnse the trouble
with The Great Western Railway be-
gun, Commercial Bunk stock was
up to about III. since then it grad
Tally fell and ROW stands nt about 13. It
has rallied at various times under the intlu-
encc Of what was expected to bc speedy SET
Elements, lnt which also proved lcluslve.
As late as last May, the stock stood at 81 In
the market. and t.ine private sales reached
10. With the fua1 adjustment OF the suit
against the Great Wcstcru-cspecially as j
eat'tfactory arranS eiMent has been conc to-
II may be exrec: cd HAT the stock will spced-
i'y Teco. er itself The position If the Com-
ncrelal Hank IS now most satis:s ctory, aud
having got lid oftkis railway trouble, it will
be able to pursue untramnlcllcd that career
OF usefulness and enterprise which 1t has SO
long maintained.
As it may be the last time that there will
be occasion fuE direct reference to This mat
ter, it may not be nnintcrcsting to fera pitu-
late the chief points Of the dispute. In 1856
and 1866 the Great Western Railway Com-
Tany became so Impressed with TIE ucccs-
sity Of securing the completion and The cou.
tfol Of the Detroit 4 Milwaukee, liuc, as
feeder for their Own. that they made a.
raneetnents with the Michigan company
to complete and equip their line. Money
Wns to be advanced Tor the purpose,
but the expenditure was to be subject
to the Great Western Company. That
d"nc. the rext step was to get lunlS. At a
Efnera! meeting OF the shareholders in Eug-
iand in 1siA', loan OF .l50, Coo sterling was
authorized to be contracted !; and Tue year
following, n further loan of :n10O, ,Ooo-all to
lc applied TO the Detroit & Milwaukee line.
Tie Great Western, in September. 1857,
transferred their accounts from the Bunk OF
Upper Canada to the Commercial, and
quircd for the Detroit { Milwaukee.
On December 50 the account
was opened, and advances contin-
ued to Le made up to the end Of Dec cmher,
| AS1tt JN9% WV EaIet - uEl lkC U4Qh ClAll1Eu
settlement, and, until that was had, re-
fused to make further advances. The Great
Western demurrcd to payment, alleging that
the Michigan line was liable Want oT pro-
| per written guarantees and some confusion
in the account keeping, rendered it some
Great Western, and c1nrts at settlement
proved Of no avail. 4 suit was insti.
tuted in the Court Of Queens Beuch,
In May, 1850, which resulted fl.
vorably for the bank. The actual
amount Of over advances, We may state, that
had been made when the account was closed
IN December, 1889, was very nearly $350, 900.
The railway company appealed ngainst the
decision, and our court Of error and up
zeal rcy ersed the decision Of the queens
matter vas taken to England, where, after
! some delay, the court in the main
affirmed the conclusion Of the Canadian
court OF appeal, but authorized 4 new trial
to determine certain facts. lustead of
pursuing the matter further, the parties,
items, agreed to settle the matter, and they
have done SO. Excepting then. point Of
| detail, which will not disturb the arrange
| m.nt which ever way settled, a. the great
| million and half bank suit of which We
/ have heard SO much,is now finally set at rest
| The precise details of the settlement have
not been officially made known; but the
! main features arc pretty well understood to
! be as fellows The bank is 10 receive the full
! amount cf its claim, principal aud interest,
| amounting. VIC believe, TO nearly n million
and half Of dollars. 1t gets this in the shape
| OF tWenty-year bonds Of the Detroit and Mil
| wankce lsailroad company. An instalnlcnt OF
s1ce, Geo is to be paid annually ont otthe earn
| ings Of the road, towards the redemption
| Of the tonds, and interest at the rate Of
/ seven rer cent raid IN the balance. II ap-
| pears that The Great Western Railway Com
| pany have very large claim ngairst the
Michigan road: but they agree to give
the Commercial Bank precedence, SO
| that until the latter is paid OFT, tue Great
| Western will get nothing, except interest,
as TO which that company will stand
| on an equal footing with the bank,
| payment to both being in proportion to the
respective amounts Of their claims. The net
/ profits Of the Detroit and Milwaukee last
year amounted to between $500, ,ooo aud
$4,000 and there Is every reason to expect
| that the traffic will continue to sncreasc
With the continued prosperity Of the Michf
gun line, Its bonds will soon command o
go"d market value, but whether they do O,
not, the earnings Of the road are pledged te
4 the bank.