Smyrna times., 1872-01-10
announcement.

The JUNCTION & BREAKwATER RAILROAD
MUDDLE.-The muddle existing in the affairs
OF the Junction and Breakwater Railroad is the
engrossing subject in this State. The stock
holders are at logger heads, as between SamI
Sinclair and Rich H. Bovine, on the one side
and Thomas Baumgardner, John NJ. Barry.
and John A. Sheaf on the other. The for
mer are the New York stockholders; the lat
ter are the parties wh) built the portion of the
road from Georgetown to Lewes, and the peir.
For doing this work the latter received Sl76..
0JO0O in State Bonds, or So, ,O00. 90 more than
1t was worth it is said, aud In addition thereto
they received six thousand shares of the com
pany stock, half Of all that has been ISSUED
Mr.. Baumgardner came in possession of this
stock, which gives him the control of the COR
poratlon, 1t being majority of all the stock so
lar Issued. He voted this stock for the first
time last year. Things went on swimmin ,lv
Tor time. A new engine and cars were
purchased, and other improvements made hut
1t involved the company in debt. A minority
OF the board of Directors wished to pav tbi,
Indebtedness by selling the remaining stock
considered OF no value to the people. 1t is
SAID that this would have more than paid every
dollar OF the cOmpany's liabilities-except the
state mortgage not due for several years-and
placed the road beyond the reach of embar.
rassment for the future; but Mr.. B. and his
friends, having controlling vote, voted the
proposition down, because, it is aledged, Mr.
* moi o,Nkt
would be the case if these shares were sold) till
he has sold his stock on his own terms. The
majority would not, and the minority couId
not make arrangements to meet the liabilities
consequently, Baird 4 Co., of Phila.. have
MED petition in the U. S. District Court. in
wilmington to force the company into invol-
untary bankruptcy or pay is liabilities. This
actlon on the part Of Messrs. Baird g. Co.. to
whom the road is Indebted about slI. 600 oo
has been anticipated for some time.
In addition to this petition. bill WAS filed
before the SAM totu 9n Friday last, by the
New York stockholders named above. aski,o
an injunction a,t'r-. r. .,r. R,u,no,rl,or
OF Lancaster. f. ,.,rt,...r, -
james NJ. Barry d Co., restraining him from
using the 5000 shares of stock in his posses
sion on the ground that it was frAsdulentlv oh
tained. The hearing was before Judge Brad.
ford on Wednesday last Charles Gibbons. Of
Philadelphia, and Anthony Higgins, U. S.
DIST Att, for plaintiffs, VIM. G. Spruanc,
and w. G. Whiteley for defendants
Judge Bradford, on Saturday, delivered hi
decision, denying the injunction, on the g1onnC
that the plaintiffs had utterly failed in hi
opinion to either prove the frauds or defen
dants' knowledge of any fraud, but it had 0,
the contrary been fOrcbly argued that the de
PENDANTS themselves, owning half the stock o
the Company would have been greatly tn
sufferers by any such fraud as that alleged
This dlsposes Of the case until next June whe
1t may come before the Circuit Court. Th
special charges against Barry & Co., (for whor
Btumgardner was capitalst) was that the iro
they furnished was of inferior quality, and
now nearly worn out; is unfit for use, and vi
safe, and that they knew of this inferiorit,
aud bought the iron at low rates, and thr
knowingly grossly defrauded the Company.
A number of the Sussex people, includin
alcssr'. Burton, Stockley and Kitchens, thre
OF the Directors of the Company, side wit
Mr.. Baumgardner The Sussex Journal al,
lndorses Baumgardner 1t says:
"in January OF last year, James Gibbon
VINO represented or assumed to represent tl
Rev York interest, purchased (or contracte
~ D0Felasej the interest OF Baumgardener