The New York herald., 1869-02-27
ANOTHER RAILROAD NAR.
Atlantic and Great Western vs..
New York and Erie.
A Quarrel in the "Brvad
GaUge" Family.
The Sterling BOndholders Charge MiSap-
preparation Of Funds.

suit has been brought by John r. Pean, the tTus-
tee OF the fsoooo 900 sterling loan OF the Atlantic
and Great Western Railroad COMPANY, against the
directors OF that company and the Erie Railway
Company to compel the Erie Railway Company TO
appropriate tho money due under a lease from the
Atlantic to the Erie Railway Company 10 the pay
ment OF the interest and principal OF the mortgages
on the Atlantic and Great western Company The
complaint in the case with the exception OF the ex-
hibs is as follows, and IN injunction was granted,
as prayed for:-
John Il. Penn, TRUSTEE, p,ainttG rs The Atlantic
and great Western haittruy Company. Henry G..
.Seob',ss, EdaoaTds Per1epon5 Andretc ~ Green, 4.
Weston, Z. " KeaRGfd, r. l.. eating, John ID.
Prince, r. McDeIaoH Mortimer Z. Mackenzie j.
r. Fsia'aes, John Gduaer Wsaitlrorth H,tysite Rush
c. HGscairs, W. 4lclslau ODotefTy, 7attotc Jack
son, Wtlit0fR RuSSeu, Joln Flies E. L. s Ridsdcle,
j. Chdytor, Paul kdTGetson r. W. Oeare7, The Erie
RdlIcdy Company ana James McHsfiy the defend
ans The plaintiff complains and aleges:-
j. That the Atlantic and Great Western Railway
Company Is corporation created under the laws OF
this STATE and also under the laws OF the States
PENNSYLVANIA aud Ohio, and having for ifs principal
object the maintenance ana operation OF a railway
State, to Dayton in the state OF ohio, with varcns
branches and having It's principal oaice and place
OF business IN the Guy Of New York.
III. TDat Henry G. Steboins. Edwards Pierrepont
Andrew h. Green, +. Weston. 4. w. Kennard, K. L.
Cutting John ID. Prince, Z. McDermett Mortimer l..
Mackenzie, J. P. Fennes, John Gardner wentworth
Huvslie, Rush @. hawkins, w. Arcbdali OiDoherty.
Tatlow Jackson. William Russell John Fildes, T. l..
s. Ridsdae, J. Chaytor Paul Margetson and +. w.
Oewe are the directors or the Atlantic and Great
Western Railway Company OF whom the Last six,
as the plaintiff Is informed and believes, DO not re-
SIDE IN the United States and never attend the meet
tngs OF the board OF directors.
Ill. That the Erie Railway Company is CORPORA
tion created under tine laws OF tins State and hav
ing for It's principal object the maintenance and
operation OF railway In said STATE and other
States, which connect at Salamanca aforesaid with
the said railway OF tne Atlantic and Great Western
RAILWAY COmDanv.
". That the property OF the said Atlantic and
Great western Railway Company was formerly
owned by three corporations; that is TO say, the
property situated in this State was owned by "the
Atlantic and Great Western Railroad Company in
New York;" the property situated lii Pennsylvania
was owned BY "ihe Atlantic and Great Western
Railroad Company OF Pennsylvania" and the pro-
perty situated in Ohio was owned by "thc Atlantic
and Great Western Railroad Company OF 0hio;n
each OF the SAID companies being corporation
created under the laws OF the State In which its
V. That, as the plaintln is informed end believes,
while the three companies last named were the
owners OF the property Aforesaid the sald Atlantic
and Great western Railroad Company In New York
executed two mortgages upon all Its property to
cure the paym mt OF certain negotiable bonds
OF that company to the amount OF ST. 500, ,000 which
bonds 10 the amount OF ST. 500, were issued to
holders IN good faith and for vaue; the said
Atlantic and Great Western Railroad Company
OF Pennsylvania executed two mortgages upon
al iIs property TO secure the payment
OF certain negotiable bonds OF that company
70 the AMOUNT OF So, ,00o which bonds, to the
amount Of o0S 900, were issued holders in good
faith and for value and also executed a mortrave
Ipon part oi iIs property known as the Franklin
gcuaCIe hc:js OK that company, for e52so00, which
bones, 70 the amount Of S349.ooo were issued TO
holders IN good faith and for value; and that the
SAID Atlantic and Great western Railroad Company
IN ONO executed three mortgages upon It's property
70 secure the payment OF It's negotiable bonds for
Ss,3Oo0Oo which bonds, TO the amount OF So 800
were issued to holders IN good faith and FOR value.
W. That as the paintin 10 informed, and believes,
the rea and personal property OF the defendant the
Atlantic and Great Western Railway Company. IN
the said states respectively, Is still encum-
bered with the SAID mortgages. and they
have lien upon said property prior to
that OF the plaintiffs mortgage hereafter described.
VII. That, as the pla.ntlG sjInformed and believes
the property OF the Atlantic and Great western Raul
way Company Ia this state, or o considerable part
thereof, Is also incumbered with two mortgages
made TO secure the payment OF $2,0l4000, OF which
SUN el,og6,OOo constitutes valid debt and charge
upon such properly IN favor OF holders OF negotiable
bonds therefor In good faith and for value and the
SAID mortgages have lien upon the property PRIOR 10
that Of the PLAINTIFFS mortgage.
VIII That, as the plaintin is informed and believes
oil the bonds and debt Aforesaid bear interest at the
rate OF seven per cent per annum, payable semi
Annually.
TX. lnat afterward, ana on or about the 5th day
OF october, 1885, at the city OF New York for value
received. the said Atlantic ana Great Western Rail-
way Company executed and issued coOo0 bonds for
tin or the bearer thereof In legal tender
coin Of the United States OF America, or
dollar the 10th day Of October $780, at the city OF
New YORK, with interest thereon In like coin at the
rate oi seven per centum per annum from the 18th
aay Oh OCTOBER, 1862 pay able quarter yearly at the
oince OF the said corporation in the city OF New
1ork. or az It's agency In the city OF London at the
option or the holder, on the presentation aud sur
fehaer OF certain interest coupons attached TO said
bonds respectively.
x Tna on the 5th day OF octobcr 1906, at the city
OF new lorK Tor the purpose OF securing payment OF
e SAID bonds, payable 10 the plalntin as Aforesaid,
the said corporation executed under ITS seal, Ger.
taln instrument OF mortgage to the plaintiff OF which
acopy y hereto annexed, marked ''A.u
~. That as the pl sintin Is informed and believes
~. s.oVo oi the bonds payable 10 the plaintiff as
sioIssaa nave passed into tue hands Of holders in
sood aith and for value, many Vi whom, at q period
moie than twelve months before the com.
Meneeneht Oh THIS action, presented to the
saa corporation at ts once in the city OF New YORK
or al US agency IN the city OF London intcres,
coupons upon said bonds for interest tnen due ana
payable by the terms thereof, and Demanded nav
Eent OF sald interest from the said corporation at
the same time Offering TO surrender TO the said cor
p0fatlon the said coupons upon payment OF the in
tcrest therein specified and agreed to be paid: but
the said corporation refused 70 pay the same.
All. That, as the plaintiff - informed and be-
heyes part OF tae interest upon any OF the bonds
secured as Aforesaid by mortgages upon the prop.
cry q the Atlantic and Great Western Railway
Company has been paid for more than two years
last ast except the interest upon certain bonds for
$4,000 IN al secured by mortgage upon o small
pJrliOn Of the said railway In tins state.
Nil. That in or about April, 1867, In certain actions
conAenced by samuel Gurney and others against
tns @ Atlantic and Great western Railway Company
ant others, one Robert B. Potter was appointed re
ce'er oi All the property OF the said company by the
,n.uFene Court OF tins state the supreme Court OF
ichllHf hEu tue COuTt OF IOlnlnOn
fleas Tor the county OF Trumbull in the state OF
oEl1 ana Tue said receiver took possession or said
p1gkesy aud he'd the same until about the 18th day
OF DeccmDcr, 1885,
NV. That on or about the seventh day OF Decem-
ser, 1905, tne Atlantic and Great western Railway
s0Ipany and the Erie Railway Company executed
usuer Their respective seals O lease OF which COPY
~, Luei9to annexed marked "B,n and at the same
tue the said companies executed under their re-
spetive seals aud the defendant, James Ncfienry,
eAftuied under his hand aud seal. an agreement az
"l1gl copy is hereto annexed marked .'C.1
AN lhat on or about the 18th day OF Dcecn-
DeI, .S55, the Atlantic aud Great Western Rail-
way Company executed aud delivered TO the Erie
hanWf Comp2ny certain instrument OF mort
2aSsf piwhch copy II hereto annexed marked ar -
ANL mat as the plaintiff A. informed and be.
neyes, re property OF the Atlantic and Great WcstA
ctn hallNay Company greatly deprecated In vaue
niter the execution Of the aforesaid mortgages 10
hlI and became and was and still an entirely in
suncient security for the mortgages with which Il is
encnmbered and that the net earnings from the said
ralway on fs branches have long been aud stll are
insuihc ent 70 pay the interest accraiug upon tho
oongs secured by mortgage upon the properly OF the
sal1 company az Aforesaid, and the said company Ia