New-York tribune., 1869-02-27
ANOTHER RAILROAD CASE.

A suit has been brought by John II. Penn,
the Trustee OF the SOOOOOO sterling loan Of the Atlantic
and Great western Railroad Company against the Di.
rectors OF that Company and the Erie Railway Company
TO compel the Erie Railway Company TO appropriate the
money due under lease from the Atanticto the Erie
Railway Company to the payment Of the interest and
principal OF tho mortgages OF the Atlantic and Great
Western Company. The complaint in the case with the
exception of the exhibits, is substantially as follows
and injunction granted prayed for:
The defendants the Atlantic and Great Western Rail
pont Andrew H. Green. L. Weston. T. W. Kennard. r. L.
Cutting. John ID. Prince. l. McDermott, Mortimer l..
Mackeuzie, J. 7. Fennes John Gardner, Wentworth
Huyshe, Rush c Hawkins W. Archda O'Dohcry. Tat
low Jackson. VIM Russell John Fdes, L. L. s. Rdsdale,
The allegations OF plaintiff that previous 20 the
soldatog the Atlantic and Great Western Railway In
NewYork, tle Atlantic and Great western Railway OF
Pennsylvania. and tho Atlantic aud Great Western Rail
way of Ohio the HewYork branch executed two mort.
aH saseS S%R III boPGs to- e 70 o Wc
bonds to the Of 800 issued 10 holders
In good faith and for value; the Pennsylynnia branch
executed two mortgages upon nl is property to
secure the payment OF certain negotiable bonds 10
the amount Of S.DG.OoO which bonds TO the amount
of q OsOOO issued 10 holders. aud also executed
mortgage upon part OF ITS property known ns Tho
negotiable bon0s OF that Company for S2sOoo which
and that the Ohio Branch executed three mortgages
upon IT'S property 70 secure the payment upon IFS nego
able bends for = 800 OO which bonds. 10 the amount OF
S63509OQ, were ISSUED TO holders The paintih believes
that the property OF the Company In these several states
which prior the mortgages held 10y The plaintiff
the consolidated roads This mortgage is Tor tOoOO0p
and was executed october, 1862 when the Company
issued bUnds for the named, agreeing 10 pay
per cent interest on tho same. The complaint sets
forth tbRt for two years past none OF the
these bonds excepting $4,000 wOrhl has been
paid; that the affairs Of the Company went into the
hands OF a In April, 1867 and remained until
December The plaintiff believes that the property
the Company has greatly decreased IN value since the
execution OF the mortgage 10 him. and that 10 and
still is entirely insufficient security for the mortgages
with winch II Is incumbered; that It's earnings nsuf
aiufer fleb md l4ft
has been wholly nSOlyeut; that Erie Railway Com
pany has paid 10 the Atlantic aud Great Western
Company 100000 account OF lease; and that
none OF ths applied the payment Of the IN
the mortgages other Just debts OF the
Company, having been claimed by Mclienry and other
Directors as payment for debts due 20 themselves.
ODOherty, OF the defendants, Is alleged 10 have de-
mandod from the Erie Railway Company 100000 on
count OF under the lease OF portion Of the road,
and the plaintiff alleges that this II received. will not
be devoted TO the payment OF tho interest on the
alleges that the Directors will attempt 10 annul said
lease winch he considers is highly beneficial 10 the At
lantc and Great Western Railway. He therefore, prays
that the Erie Railway Company be required TO appro
pirate all money due 10 become due 10 the Great West
efn Atlantic Railway 20 the payment Of the interest
on the bonds held by him; that the Directors Of tho
Company he defendants be required To account % this
Court for all monies received by them account Of the
Road that the Erie Railway Company DO enj0ned not
pay any monies to tho defendants account OF the
said lease and that the defendants bo restrained from
procuring any forfeiture OF the the said Erie
Railway, or obtaining possession OF the property
held the said Railway.