The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-09
Another Injunction Against the Company
In the United States Courts.
EARNEST PRAYER BY AN ALABAMIk.Al
The Purchase Of the Line of Steamers and
Grand Opera House Alleged to
Have Been Unauthorized



Another Richmond in the held, and the crv n '-tD
they COME" wailing moan noats up ir ON Ala
bama. 1t Is the OF q disappointed sto ckh0der
but as 1t nears the changed ana eals forth
the defiant blast OF war;
The Of warfare is thus time laid ins the United
States Circuit Court. bill has been 1led IN the
clerks Office by Thomas ST. John, OF Nj Sbe setting
forth that he s the owner OF 800 sharessof preferred
capital stock. which he complains we're rendered
worthless by other issues without ANY provision
being made for the payment OF the al iaends OF the
said stock and that the net earnnsE were used Tor
other purposes than authorizeU 10y the contract
between the shareholders and the company.
After reierrlng at some length to the his
tory OF the road for some ten years past,
with which the pubic doubt
familiar. and particularly the contract by which
the Company first issued its certificates OF preferred
stock, the bill goeson to complain that 1t was the
duty OF the defendant to pay, and 1t was made the
right a. the holders of said preferred stock
dvdeads thereon II earned IN any year out OF sad
net earnings next after the payment Of the mort
gage interest aud before the payment OF interest
any bonds issued by the defendant not secured by
one Of the Ave mortgages upon the Buffalo branch
or the Long Dock property AMI also before the pay
mems OF the rents on any roads leased Dy
the defendant, and Dlfore the payment OF
any bonds guaranteed by the defendant and before
the payment OF any obligations or liabilities IN
Cured by the defendant relative TO any roads lines
Of steamboats, or other property. save the proper
operation OF the main line and the line co Buffalo,
Hnce the creation OF the preferred stock In 1851.
THE CHARGEs-THE STEAMBOATS, AND THE ERIE
BUILDING.
Thomas st. John then goes on to complain that
the defendant aud those controlling It's affairs have
without the assent Of the plaintiff OF the pre-
ferred stockholders who may be parties hereto
made engagements In It's name, AMI which are
claimed &c bind the defendant respect to several
railroad companies III New York, New JERSEY,
Pennsylvania and ONO, have issued q large
amount or unsecured bonds, bearing inter-
est, and have guaranteed other bonds or
coupons in large amounts. have n,ered into various
like or other engagements respect OF lines OF
steamers and 10 extensive building in the city OF
New YORK, ana otherwise have assumed to pay
satisfy and carry INTO eject very expensive opera.
tons, ana the defendant claims the right and
threatens to use any portion al OF said net earn
lngs Oh TIE whole OF sad property ana roatis from
year 10 year, ai.er paving said mortgage interest
ard the expenses OF SAID I'm Of road. 70 when tn
net earnings III said contract referred ana pertain.
without lfst paying or III any way providing ior
any dividend On auy part OF tile preferred STOCK
the painln or OF those VINO may become plaintiffs,
even when suca uiv,oend IS earned and is applica-
Die To SAID contract according TO tue purport
OF SAID contract articles and statutes ana stock
uncaLes OF SAID company
WHERE TAERE'S A WILL THERE'S WAY.
Ana It's Officers oIeniy gave out and Claim that
thy may legally ana Justly all said net earnings
for any purpose aforeslld and In substance clam
aLu act, ana threael to u sad earnings upon tle
theory OF sucn AIN; that all the rights secured 10
said preferred Stockholders BY the SAID contract,
laws articles, stock certificates the right 10
have dvidend on SAID preferred STOCK before ans
dividend shdl DC declared anu paid ON The common
stock oi tue defendant.
Ana the deienuant IS about to enter into other OBJ.
legations and engagements whereby SAID net earn
ings are intended 10 lie and will be devoted 10
making payments to satisfy the ne, and whereby
the paintn and holders OF SAID preferred stock Will
be deprived OF dividend.
THE HAND UPON THE WALL
Ihat the results Oh said engagements and obliga-
nons OF the defendant. and OF said payments aud
diversions OF funds mat should be held applicable
TO said preferred stock, has been To depress ana
now tends further TO depress the OF the said
Stock OF palntin and OF those whj may become
parties hereto; all winch actings, doings and pre-
fences OF the defendant are contrary the equity
and good conscience and will cause rreparab.c IN
jury To the palntlf and the owners OF sad pre-
Ieired stock who shall become parties hereto.
adequate relief except us thus honorable court 10
the end, therefore, may FULL trne, direct and perfect
answer make TO al! and singular the matters
sucn oath beng hereby expressly waved
and That thus court will ascertain and
adJudge the meaning OF said net earnngs the roa is
property and branches TO wnicn they relate the
rights and priority OF the plantn and Of otner pre-
ferred stockholders who may become parties to de.
mand and receive dividends the construction OF
sad contract statutes and certificates aud the duty
OF the defendant In regard to Keeping accounts Oh
earnings AID to paying the same and the order and
priority OF their payment ana that the defendant It's
OIfcerS anu agents may be restrained by inunc-
ton out OF the court from applying anv portion OF
the "a net eal nngs after payment vi interest On
the a oresaid mortgage bonds, any other purpose
than the payment OF dividend on preferred STOCK
according to the intent and purp0rt Of said contract
articles laws and stock certificate as herein stated
ana that your orator may have further or other relief
III the premises as may be agreeable to equity and
good conscience.
INJUNCTION AND WRIT OF SUBPOENA PRAYED FOR
May 1t please your Honors to grant unto your
orator the writ OF injunction lss4hg out Of and
under the seal or this court directed said the
Erie Railway Company. It's officers and agents. COM
mandlng 1t and them 10 deslst and refrain from ap-
plying any portion OF the SAID net earnings after
payment OF Interest on the aforesaid mortgage
BONDS TO any other purpose than the payment or a
dividend ON preferred stock, according to the intent
aud purport Of sad contract, articles, laws and
stock certificate as herein stated, and also the writ
OF subpoena to be drec.e1 10 the said The Erie Rail
way Company thereby commanding IL by q certain
DAY anu under certain penalty therein
20 be inserted, to be and appear before TINS
honorable Court ana then and there FULL true. direct
and perfect answer TO make to all, and singular the
premises, but without oath and further stand 10
and abide such order and decree therein as snail
Ihis ends the complaint OF Thomas ST. John OF
Alabama. and the cierk has accordingly summoned
tne parties interested to atend. THAI there Will be
war " the KNIFE IL reasonably anticipated.