The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-06-06
supHfM Ne COURT.

Tho Atlantic MnI Steamship CemDany-An
Action Instituted by the stale 60 Aunul it's
franchise.
Before Judge Barnard.
ne People Of The State Of Neo York ns The Atlantic Ran
Sssosasatp corapang. -The motion make permanent
tho injunction obtained by the Attorney General which
ycrained the directors of the Atlantic Mail Steamship
Company from aisp0sng OF my OF the steamships or
sther property Of the company during tho progress OF
thAs action and from removing the books and papers,
came before the Court this morning. The action has
been commenced by tho Attorney General 10 dissolve
Abe company and annul its charter for various alleged
ssfs Of the directors which claimed TO be direct
violation OF ,s corporate authority and also for tho APP
posntmen OF receiver OF the property aud OF the
company, who shall take charge OF ils affairs until its
dissolution as asked for, is completed preliminary
injunction has been issued restraining the directors OF
the company, and the Attorney General now seeks to
render that injunction perpetual
The complaint is very voluminous and charges,
among other acts that in 1895 The Atlantic Mail Steam
nhip Company which Incorporated for the purpose
Of running between Now York and AspInwal, and
Panama and San Francesca, sold all steamships and
property other than cash TO the Pacific Mail Steamship
Company, receiving IN pay therefor ten thousand
shares full paid and shares of
stock of the Pacific Mail Steamship Company which by
agreement 10 be sold until December 1858, and
yev0cable proxies to vote which held by trustees
nominated by the Pacific Nal Steamship Company 1t
- Also alleged that making this sale the Atlantic Mail
Steamship Company agreed with tho Pacific Mail Steam
ship Company not 10 run any steamers between
shs Attorney General claims amount to a sur
render OF ita charter. IL is also alleged that
tho Atlantic Mail Steamship Company has for more
thAu one year past suspended It's ordinary business
which was tbat OF running line Of steamships between
New York and Aspnwali, such suspension alone, il is
held bcing declared by statute be u sufficient
for dissolution and further that tho greater part OF
capital has been in violation Of law Withdrawn from the
legitimate purposes for which the company ncorpo
ssaed and has been invested in the stock OF other
Enasons, which IL for the purpose OF aiding ia
maintaining the monopoly Of the Pacific Mail Steamship
Conpanysin the California trade II s further alleged
thai the Atlantic Nail Steamship Company is largely in
viewed In debt and the stock for which II sold its
property hypohecaed for money borrowed by il, to
Ne amount Of two millions OF dollars, and the
Arges part Of which Indebtedness Incurred IN the
purchase Of Stocks The following is the substance OF
Tho demands made BY the Attorney General IN hts
complaint
'That the said the Atlantic Mail Steamship Company,
The defendant herein, be excluded from ts corporate
Nights privileges and franchises, and be dissolved and
thai ts existence corporation be annulled that
ety real and personal wheresoever situated and Of
books, papers, effects and chooses In action that such
scccver may apply the proceeds or such property,
after paying hereost The costs and expenses OF this
nay direct 70 the payment Of the debts OF
tho defendant and that the surplus OF said proceeds
may be distributed, under the direction Of this
Court among the stockholders OF the efendsnt That
Atlantic Mail Steamship Company, its directors, off,
cesr agents and attorneys may be restrained and
3onsd by order OF Injunction from transferring dis
pcstng Of OF the steamships other properly Of
removed. from tho oise Of the defendant any OF It's
books. papers and securities and from paying out
q she funds or property OF said defendant as dividend
70 IL stockholders"
Aursday. i3ih INST, at o'clock, and the mi
tjon meantime remains in force.