The New York herald., 1868-03-22
NEW YORK CITY.
THE COURTS.
UNITED STATES DISTRICT COURT.

The Chicago and Rock Island Railroad Case
Before Judge Blatchfotd.
Rig1ts Hatch u.s. The Chicago, Rock Island and
t7actec Railroad Conapanv.-Ths case which has
come into the federal courts on motion, was re
s'umed yesterday morning by plaintiff to appoint Q
receiver The motion was opposed by the defendants
MI. Charles Tracy, counsel for defendants pro
ceeded TO read the dispositions OF several parties in
serested in the Chicago and Rock Island Railroad
ana Ia the sale and transfer 0f forty thousand
shares in that corporation. Those documents were
tne amdavls Of directors, officers and stock owners
cnora Sho among these were William and John Tracy
S. Sturgess and several Others. In these
allidavlts the deponents testified to the neces-
nr Ra0n to Of the stae cour e
In one Of those atfdayits the deponent
testified to the unsound management. and the
the New York Stock Exchange, the fluctuations in
which during the month OF December last ranged
!irom p3 to 99I per share. Counsel read the deed Of
CONSOLIDATION entered into by the Chicago and Rock
Island Railroad Company and the Chicago, Rock
ISLAND ana Pacific Railroad Company, by which it
was cOvenanted by and between these two railroad
companies corporations, that the capital stock OF
the two companies should become consolidated into
like manner all debts and liabilities to which each
company might have been Liable should become con.
solidated and become the debts and liabilities Of the
one cempany-namely, the Chicago, Rock Island and
Pacific Railroad Company-and In like manner all
debts and contracts, and all materials and items
"a pAOpCAtyy VI WudiSOfcT nature OF klnQ nltnertO
duo to or In any way belonging to either company
respectively, should become consolidated and be
the property OF the consolidated company OF the
Chicago, Rock Island and Pacific Railroad COMPANY
and that this consolidated company should be
managed by one board OF directors, consisting of
thirteen members duly elected from the stockholders
of the consolidated company
Mr. Burrill, counsel for plaintiff, then proceeded
70 read series Of afdavs, in some OF which it was
: alleged that the consolidated company herein
!. mentioned was governed and controlled and
managed solely by one or two OF the present
directors. The reading OF these documents occu.
pied the court considerable time, they being
series OF depostions bearing on various questions In
y connection with the formation and management of
the companies separate and distinct as they were
before, and consolidated and absorbed into after
the deed OF consolidation. In one Of those deposi-
tons some interrOgatories replied TO with the
WORDS II decline to answer" Those interrogatories
IN general had reference to the finances of the CON-
pany, as to how they were received and how dis
Chicago and Rock Island Railroad Company never
nad secretary, nor secretary's Office In
Chicago, nor In any other place In Illinois; the
once OF secretary, II was alleged, was held
IN the city OF New York, where the directors met
and conducted the business Of the company. Coun.
gel read the afidavt Of Rufus Hatch, the plaintiff In
this case, IN which he deposed to the formation Of
the Chicago and Rock Island Railroad Company and
to the consolidation Of the Chicago and Rock Island
and Chicago Rock Island and Pacific Railroad CON-
pany on the 9th OF February, 1851 by which 1t was
provided by the statute OF incorporation that the
original capital, $300, ,000 should be increased to
three millions OF dollars and that the number Of d.
. full board
AT the conclusion OF very lengthy argument
!euge Blatchford took the papers, reserving judg
EAeat