New-York tribune., 1871-07-11
THE COURTS.
A STRANGE CONTEST BETWEEN SOUTHERN
RAILROAD COMPANIES.

A STRANGE CONTEST BEIWEEN 0o' AiiEiNN
RAILROAD COMPANIES.
r,ouprFrrr TRANSACTIONS OF A RAILWAY PRES
IDENT-A NEW-YORK BANKlNG-HOUoE IN A
SINGULAR PREDICAMENT
The Florida Legislature, during the past two
years has provided fer the consolidation OF several rail-
roads within the State and for the completion Of the un-
ped portion Of the line. To carry out the latter pro-
yisen the Governor was authorized to issue coupon
bonds Of State TO the amount OF $4,000 per mile IN
exchange for first mortgage bonds Of the consolidated
road known as tho Jacksonville, Pensacola and Mobile
Railroad Company In pursuance Of the authority dele
GATED 10 him. the Governor issued, about year ago.
100000 Of eight per cent gold bonds OF the state IN eX
change for 1900 bonds OF the railroad or the denomna
ton of 900 EACH and 81 of the bonds Of the Flor
ida Central Railroad Company. The State issue OF
n 900 600 was placed in the hands OF :. ". Hopkins Co..
bankers of London and this city, be Sold aud the pro-
eeeds applied toward the construction OF the uncom-
pleted portions OF the road Hopkins Co. made con-
tract in Europe dispose Of the bonds, and some OF
them delivered while larger number SIN remain
in their hands,
The President of the Jacksonville and Pensacola Rail-
r,ad Companv Milton s. LiteAeld, had previously been
PRECEDENT Of the North Carolina Railroad Company, sue
cecdng George W. Swepson in October 1862 The North
Carolina Railroad Company claims that SWepson' when
President Of it, misapped large amount Of the North
Carolina State bonds issued 20 enable the Company to
hnild it, road and that he purchased with the msap
ped funds large amount of the shares of the railroad
from jacksonville TO Quincy known as the Florida Cen
fra Railroad beside bonds Of Other portions Of tho con-
sodsied Florida Rshoad that sTspson aiterWard s8d @
Sorth Carolina Railroad Company 70 the same GHIot rs
swePsoH the liability amounting 10 s25aif0 lfe tee Soi a
pauy therefore claim tlat they had Igt 70 taHe a.
many Of the of bonds in the hands OF the bank
ers, Hopkins Co.. as would PSy pay Inat 5 svanaon and
tfleGeld and they were indicted ein North Carolina
Being u fear Of these STfa Win tSe North Carolina
Raroad Company in April and Noyember 1870 giving wing
- o1id nav the 81 496 claimed to have been fraudu
entIy misapproprated. Mr. Uttefeld as President of
North Carolina Road had valid claim upon portion
the bonds, aud directing them 70 pace 20 ne oTr % @ O
coped the order, and ADVANCED npon u 10 Tue NOrtn m
Carolina Company S5516 Inc fIoll1h ~ Ts
agreement was without authority and illegal ana Void
IS the bonds bad been issued for ths sole PnIP3s 2i 9
,tber use Hopkins Co hereupon refused pay over
Inc balance 10 the North Carolina Railroad. Ihat COM
paDy then brought suit In the Supreme Court IN june
asst 10 compel such payment ana an ordet OF atIest Was
granted against s W. Hopkins and the two oher mem EN-
her. of tile firm on the allegation that they held the
bonds or their proceeds the agents or te Norm Cao
lima Railroad and that hey Icuga TO ] eeHtI tpeh Pil
Company then brought counter SUIT recing z an tne
acts and asking Tor an on & 10 Sroceeds 70 the
North Carolina Road. and TO enJon mat rOad rom pros
eciting any suits against Hopkins Co They also ask
st II he decreed that the bonds the property Of the
Florida Road held in trust for the purposes oi
The case came before Judge Cardozo. in the supreme
Court Chambers yesterday, upon motion on tHe paGd
Of the North Carolina Road for Receiver oi the So,U
u bonds in controversy, and an injunction restraining
their transfer while the Florida Road ask Tor an
tion to restrain the other road IRON loseCu e
snif and Hopkins & Co.. who stand between, WITHOUT
any special interest 10 the final determination OF me
coxroyersv seek 10 have the order Of arrest against
Them set aside. o. the part of the Florida koau u was
cjamed that the North Carolina Road did not own the
6onds when they were sold. and owned them
ElgeTnon 5. Sullivan and Mr. Carter represented me
Sartb Carolina Road, and l.. w StOughtOn, A. T. SInC
and Robeit Sewel appeared for the Florida Road ana
Hopkins & Co. Decision reserved.