The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-06-18
SUPREME cuuRr-spECNL TEEN.
Extensive Operations in Real Estate.
Before Judge Daniels

Extensive Operations In Real Estate.
Before Judge Daniels
James 8. LIBBY H. H. Rosetrdss, Alert n. Cheney,
the Adirondack Estae and Raiiroad Company and John
A. Dir and John H. White, R<ceipesof the Adirondack
Company This before this court yesterday
demurrer ntcrposed by the defendants E. H. Rose
krans and John H. White, Receiver The complaint
alleges that prior TO 1850 the Adirondack Estate and
Railroad Company was organized and sue
ceeded to the franchises aud rights OF the Hudson
River and Lake Ontario Railroad Company; the latter
company having acquired by purchase 100000
Of land situated in th great wilderness Of North
ern New York, and having constructed thirty miles OF
railroad bed, at outlay OF s. 600; that, after the
organization Of the Adirondack Estate and Railroad
Company, the defendants Rosekrans and Cheney, by
contract sold TO the last named company over one hun
dred thousand OF other land adjoining the land OF
the projected road for which the last named company
$500 and Upwards that the contract bore date oc
ober $780, that tho company after having paid $500
upon each OF said contracts omitted TO pay the install
ments which had become due up to the LIST day OF January
1862 amounting to $229 000 including the interest upon
the whole that .hereupon several actions, in the
BY Rosokrans and Cheney in the Fourth Ju-
dcla district OF this state against the Adirondack Es
tate and Railroad Company, in which action the COM
pauy appeared By its attorney, aud Rosekrans and
Cheney, upon application 10 the supreme Court IN that
district succeeded IN striking out the answers of tho
company; the company claimed that the contracts
made with their authority by Edwards their
engineer. and thereupon recovered two several judg
LIST Of January 1852 with the direction Of the Court that
the company pay the two other instruments 70 become
January /. 1894 EXECUTIONS were Immediately issued
upon the judgments and were returned nuud BONO and
thereupon an application was made in that district for
the appointment Of receiver Of the property OF the
company and ono Edison Sheldon was appointed re-
celver upon the Judgment obtained by Cheney Shortly
afterwards upon judgment obtained by one Chadwick,
in Oneida county, similar application made before
Judge Of the Supreme Court In the Fifth Judicial
srct1 wherein Alexander Seward was appointed
hat hnth
Of -, said receivers e, qualified and entered upon
the court appointed Andrew Dexter in his stead that
application made about that time in the Fourth
district to of the judges Of the Supreme Court for
rondack Estate and Railroad Company and tho plaintiff
alleges that the petition for such instructions being
and the SeoOn Sy Sm
said Rosekraus being meantime OF the Justices Of
the Supreme Court and being prohibited by law from act
court that the order giving instructions TO the
authorized him 70 sell the property Of the Adirondack
Estate and Railroad Company 70 satisfy the of $685.
600, whereas It urged that the OF granting
such order the OF S229 OOO thcreabouts only
duo upon both Judgments Of Rosekrans and Cheney,
which they had obtained order directing the
ceiver might apply any bid which Cheney might make
upon the sale Al public auction Of the land and property
OF the company, upon the two judgments above men,
toned 1t is furthermore charged that the appointment
Of such receiver was accomplished by col
sde that one johnson and Others acting MS the AGENTS
OF the company, conspired together and that Edison
troll Of Rosekrans aud Cheney; that under that order
the property Of the company without the knowledge OF
the stockholders, was advertised for sale at No Ill
broadway In this city, the said Rosekraus and Cheney
being present that tho interests a tho company under
tue contracts and against which judgment OF 100000
aud upwards then due and to become due, and which
Judgment had been obtained by Cheney and Rose
krans, was first put under the hammer and bid In by
Cheney sum OF s4oo that the five hundred thou
land and the railroad bed which had cost
So 900 600, next offered for sale and bid OF by
Cheney Of the sum Of sa7oooo upon which Rosckrans
nd fnefr aiufa IN tho tl.o
other receiver Dexter uniting In the same and thus
exunguishina the judgments Of Rosekans aud Cheney
II is alleged that this report OF the Afterwards
made to the Supreme Court Of the Fourth Judicial
district, confirmed and that Cheney thereby
the plaintiff further claims and alleges that after
Cheney had in this acquired title convey the
half interest TO osckrAns and soon after this purchase
a company organized, known as the Adiron-
dack Company, which ~ in existence, and that TO
this company Cheney and Roseknns sold the whole
property upon IN agreement that for their lands
which they had bid In ut 500, they should receive
$40o, 600; that Upon agreement they received
100000 cash, and $500 600 secured by mortgage on
the Same lands; and for the 500 600 acres OF land
including the Hudson River and Lake Ontario
Railroad bed they we're 70 receive 100000
and 100000 worth OF the stock Of the company The
complaint then goes on to allcge that difficulties have
Rosekrans and Cheney out Of which receivers hostile to
each other have been appointed, viz John A. Dix for
representing the Ro-ckrans and Cheney interests that
the Adirondack Company stl holds the greater part Of
the bonds and stock set apart TO Rosekans and Cheney
they not yet having been delivered.
The plaintiff brings this action behalf OF himself
claiming 10 be stakeholder In the OF SOL 600 and
Ia behalf OF all others similarly situated who choose
10 contribute 70 the prescott OF the and
that while he aside tho sale made by Roso
krans and Cheney to the present company no and his
associates should be entitled 70 have the profits adj
vantages acquired by Rosekrans and Cheney Ia tho
sale 10 the company beyond the amount of the
Rosekrans aud Cheney Judgments alleging that the
order OF Instructions 10 the receiver, requiring
him to make s3os 600 out Of the property OF the
old company which would be 100000 10 excess Of
what was due az the time Of the SALE oppressive
and void. and was obtained by undue influence the
part OF Rosekrans; and furthermore, that the sale
conducted, being cousivc, Rosckrans that account
should not be allowed TO reap the advantage which ne
holds against tho plaintiff other
aud that plaintiff and other stockholders should he sub
roes,ed 20 hts rights.
The Court took the papers and reserved its decision
For the plsintln, T. W Dodge and James Brady for
the defendant, Mr.. Mott
SUPREME couaI-cIaCuI-pARI l.