The New York herald., 1868-06-20


1854 was such amount as they had agreed to issue,
and was only such amount, after that time, as was
to be issued in exchange for the shares Of
preferred capital stock issued by the respective
panies prior to their becoming merged In one as pro-
vided In the act of consultations that after this
consolidation the amount OF preferred stock created
and issued was 1892 7s all created and issued
In 1884, that after the consolidation the amount OF
capital STOCK became nxed and determined,
ana was OF TWO kinds, viZ.:-First, preferred
stock, which amounted to about the sum OF
ss,e2l.47l 70, and did not exceed the sum OF
at that time the company had large
Indebtedness against equal to or greater than the
amount OF lts capital stock and that afterwards and
prior to May 81 1865 the Indebtedness and STOCK had
been pGIeayged yNanS to The. The following amoantsmThe
sl2e2O ,4s2 81; the noating or untunded debt
amounted to the sum Of sS25, ,S9S 24 the preferred
capital stock amounted to the sum OF Sl2 s9 l9 79
Of l3160,921 49, That between the3lst of Nav 1865
and the 3ist Of May, 1885, the debt and stock were
amounted to the sum OF sl4,O5l, 900; the pre-
:erred capital stock amounted to the sum Of
slsoi9,oSS 70, ana the common capital stock
Of the said bonded Indebtedness the sum of
100 consisted OF the said consolidated sinking
fund bonds Of the defendant; that between the lat
ter date and May 81 1857 the preferred CAPITAL stock
was further increased TO $l4 1884, 1926, being an in
crease within the year Of $l773,O6a sa, OF which
was created ana issued for the payment OF a dlvi-
dend of seven per cent upon the preferred stock be-
IOTc lsSucu, WHICH uViuenu was fnaQe IrOu ana paid
preferred stock instead of being paid i'm cash and
from the yearly earnings that this increase OF
SsS2 900 for that purpose was beyond the power and
authority OF the company and Illegal but that 1t
issued and Is now mingled and distributed that ir
cannot be distinguished from bona de preferred stock
of the company that the company has increased its
funded Indebtedness since Nav. 1857. by about a..
100000, and that after paying its total Indebtedness
OF operating expenses, rents improvements, &C.,
the company had not on the 10th Of May 1858, funds
remaining from its earnings to declare and pay a
dividend upon its preferred capital stock; but that
Its directors determined to increase the total capital
stock 30 as to make dividend Of ten per cent upon
its common and preferred stock payable IN capital
stock, which they had not power to do; that the
OF the common capital stock, Of the par value
OF S!oo per , share, and Of one Of the con-
convertible into preferred stock at par at option
and at any time before May 1870 in like manner us
as all similar bonds OF this fund, which amount in
is the holder and owner Of stock and bonds to
the same amount that about May l5 1885, the direc-
tors resolved TO do, and made dividend OF ten per
cent as above stated and directed that the transfer
books, then closed, should be opened Monday May g.
and closed on Wednesday, the 18th, and reopened
on Monday June 20; that plaintiis believe that the
books will be so opened and closed, and that the de
fendants will 1t to be done against the rights
interests and equities Of the plaintiffs, and Of
of the company; and the plaintiffs specially claim
that the company has no power or authority to IN
means for Its payment; nor to declare or make div-
dends upon its capital stock payable in capital stock
nor TO make any ulVluenu except money anu from
the net earnings or profits; nor to increase its pre-
ferred capital stock for any purpose except the
conversion Of the bonds Of the company; to in
crease its preferred stock create any such for the
payment Of any dividend upon preferred stock, &C.;
and further alege that they apprehend the removal
OF the transfer books &c by the defendants, unless
perpetually enjOined, to place beyond the jurisdic
ton OF this court and for the purpose of earring out
their determination.
Joined from doing those acts; that all proceedings
had by defendants with the view OF completing thus
scheme be declared null and void &c.
Upon this complaint Judge lngraham on WedneS-
day last granted an order to show cause why the
perpetual Injunction should not be granted and fur
ther ordering ''that until cause shall have been SO
shown and until the order of the court thereupon
the defendants in this action and each OF them and
their attorneys, agents and officers, do absolutely
fran from creating or issuing any capital stock OF
the Chicago and Northwestern Railway Company
for the purpose Of making, appOrttOning or paving
DIVIDEND or DIVIDENDS upon It's present existing capt.
tai stock, and also from making appOri0nlng any
dividend upon the present preferred capital stock Of
SAID company payable in such preferred capital
Corpus.
IN the Matter Of Mary Ann Smith on Ha6eas
Co1pus.-Ths case came before this court yesterday
morning on the return Of writ Of habeas corpus,
directed to the Lady Superior Of the Convent of the
Good Shepherd, and requiring her to produce the
body Of Mary Ann Smith, minor, sixteen years Of
age, whO 1t claimed by the petitioner, Mr.. Jesse
S. Gilbert, involuntarily restrained of her ber
ty. The petition set out that there was no further
cause for the detention of Miss Smith than the fact
that her family were members Of the Roman Catho-
lie Church and that she had recently united herself
with the Methodist Episcopal Church.
family Of Mr. Gilbert. Who is Mehodist and D. that t
while In his service she also joined that church.
The 'return'' OF the respondent to the writ of
nabeas corpus denied that the girl was enjOned OF
her liberty through any religious opinions or incna-
IONS she might entertain the institution being,
though under the direction OF the Roman Catholic
Church. nOn-sectarian) but says that she placed
under the charge OF the asylum at the request of her
father, as precautionary measure against certain
evidences OF inclihatiOns which, II unrestrained,
would prove runOus or prejudicia to her moral and
individual welfare. The court denied the motion to
discharge and the petitioner elected to traverse the
return. The case was accordingly adjourned until
Wednesday next to enable the testimony on the ira
verse to be TAKEN
The Sioux City md Pacific Railroad Litiga.
tiOn-NIotiOn to Continue Injunction.
Before Judge Cardozo.
Ld7n6drd rs. The SiOuI City ana Pacific Rnnrond
Company ct al.-This is the suit already reported in
which plaintiff alleges that he with eight other per-
sons formed the organization represented by the de-
PENDANTS, with coequal interests and provision in
the agreement by the terms Of which If any of the
members retired their interests to be purchased
for the joint and several interest of the remaining
members. That during plantfs absence in Europe
three members retired, and that on his return the
naming five refused TO acknowledge his claim TO
more than one-ninth of the original stock capital OF
$4,000 900, although they had purchased the interest
OF the retiring members and doubled the stock TO
900.
lie further alleges that 81 300 900 in United States
bonds have been received by defendants as govern
men subsidy to the road, and that all but $4,000
worth has been disposed of and the proceeds depos
tied in various banks In this city; also that the de-
PENDANTS are about to Issue bonds, which yet un
signed, to the amount OF 81, 100000.
He sues for an accounting OF his interests under
the special agreement, and for an Injunction to
twin fna from v,nrft rNyith
ang the United States bonds the proceeds of the
bonds sold, and to enjon the engravers from delv-
ering the unsigned bonds OF the company.
The motion TO continue the injunction came before
the court yesterday and was partially argued. Ir
was then adjourned until to. day.