Wilmington daily commercial., 1872-01-04
WILMINGTON, DET.
r thursday Afternoon, Jan. q, 1872
SOMETHING IN THE NEW YORK srYLE-A
RAILROAD FIGHT In DELAWARE.

The misfortunes Of railroad built with the
public money are instanced in the case OF the
Junction and Breakwater Railroad, in this State.
It extends from Harrington, "a station on the
Delaware Railroad, about 16 miles South of
Dover,) Eastward to Milford, then South to
Georgetown, then again Eastwardto the Delaware
Bay, at Lewes near the Breakwater."
This road is branch Of the Delaware Railroad,
TO some degree, feeding travel and freights
Northward to this city. but the chief idea OF its
projectors was to carry freghts, chiefly fruit and
oysters, over to Lewes, there to be transshipped
to New York. The road was built mainly by the
State Of Delaware which loaned it s4OO, 200, pay
able in 1890. The stock subscription amounted
to only about $4,000 in cash, of which, parties
in New York, including Horace Greeley and
Samuel Sinclair Of the New York Tribune, and
others Of their personal friends, were induced to
subscribe nearly one-third. (Messrs Greeley and
Sinclair gave $4,000 cash
Built by the State bounty, the road encounter
cd every sort Of trouble, until now, as we stated
on Wednesday, proceedings to force it into bank
ruptcy, have been commenced by Baird L Co.,
the locomotive builders, OF Philadelphia, and,
as we reported fully yesterday certain OF the
New York stockholders are asking for an injunc-
ton from the U. s. Circuit Court, to restrain
others from voting on about one-hslf (6OOO
shArss,) Of the whole capital stock, at the annu-
al meeting on the 8th inst.
In this latter proceeding, it is alleged by those
who apply for the injunction that the contractors
who built the last section Of the road, about II
miles, from Georgetown to Lewes, grossly de-
frauded the Company by laying an inferior quail
ity of iron, which now, in less than two years,
Ia almost worthless, being 50 badly worn as to
render travel over it unsafe, and making an ex-
penditure of 100000 for new rails necessary, at
an early day. 1t is alleged that this fraud was
discovered to the Directors, last summer, but
that majority of them, (thrse Of their number
being the contractors themselyes) refused to
take any steps to secure redress or recompense
for the Company, and it is therefore charged
that this majority of the Board, by this, and
other acts, prove themselves to be in collusion
with the fraud perpetrated
This is the substance Of the complaint, which
it must be borne in mind, is only the allegation
Of ono side. The defendants totally deny any
such fraud, and against the affdayits made tC
prove it, produce counter aiidayits, apperantly
quite as positive, that being the custom Of oul
friends and brethren Of the legal profession.
The case comes up for argument before U. s
Judge Bradford, in the Circuit Court, tomorrow
at 10 O'Clock. Should preliminary injunction
be granted, as asked for, it will restrain thI
parties holding 5000 shares of stock, issued il
part payment for building the lsat section OF the
road, from voting on it next Monday and vii
place the control Of the election for officers il
the hands Of those stockholders who actual
paid cash for their shares. In that case, tn
management Of the road, for the next year a
least would doubtless pass out Of the hands Q
the present majority, and change in its polio
take place.