, 1874-11-19

A4oNa-A AoEAA-MoAI4AaED CONCERN.
6pect0l Disnatch 10 Tbs Chicago Tribune,
RICHMOND, lud.. Nov. 18.--To-dav being til,
time designated for the herring Of tho question
aa to whethor or not the order issued few dayl
since by Judge Kibbey, Of the Wayne Circuit
Court, appointing Receivers for tho Fort Wayne
Muncio & Cincinnati Railroad, should be He
aside. Both sides appeared On the ground
carrying immense 1oads of afidavits auG
Other legal documents. Tho magnitude o! inter.
eats involved. the deep, shrewd gamc played BY
plaintiffs In their efforts to pet possession of val
liable railroad property, fact that upon the
decision OF the caRo largely depends tho ultimate
prosperity Of several connecting limos oporated
BY the Joy interest," has caused tho suit to assume
great Importance. Heavy legal guns on both
elies arc employed, Gen. Ben Hnrrison aud ",
Il. II. Miller, Of Indianapolis; H. G. Fox, or
Richmond, and L, II. Ninde, Of Fort Wayne N.
poaring for the plaintiff George ". Baldwin, OF
Boston; Judge John Morris. ". Il. CoouDs, ind
%. Bell, of Fort Wayne, for defendants.
This morning when the Court opened, plain
tlf1s' counsel mnde
An 1SEEFEoruAL ATTENrT 70 GET 4 POSTPONE
MEET.
Defendants then proceeded to submit thelr an
s"er to tho original complaint, which WAS fully
telegraphed to The TRIBUNE. Tie answer il
very lcngthy, filling about seventy pages Of closo-
ly-written manuscript and is sworn to by Charles
t. Dalton, Of Boston. President OF tho Munc.e
Railroad Company. The answer rofors 10 oyorv
point made In tho original complaint, aud gives
HISTORY OF THE OPERATIONS AND MANAGEMENT
OF THE Road
from the inception Of tho enterprise to Tho nreH-
ont tt1ne. Uefendanta state in brief thnt, pftar
the organization Of tile Muncie Company.
and sale Of 100000 t1rst-mortgago bonda'
tho other -S1.0u0.O60 Of frst-mortgago bonds.
were transferred to tue Cincinnati d Indlanapo-
LII ENtI '.t
the mai aior,ty of the capital sto6k Of tie Com.
rany, In consideration of tho litter Company
puilulng and equlprlng the rondt and tl,gclarc-
iing all lta liabilities; that this Company, finding
to the aeIeenentt, sold the bonds to dofondants
tot S1uo,o aud transferred the Btook 10 them;
that they took charge Of tho road, and for tic
purpose OF completing iss construction and equip
Mens, issued SGoo oou ond.mortgaga bonds, Of
which they took s5uo, ,oo0 the baIance ploy.ug
unnegotiable;.that, hnaipg it impossible 10 meet
Lie interest on hrot.mortgago bon6s, falling duo
April i le!3, they made proposition to tho
Ioidors t, Of tho bonds to contribute 10 per cent
pf the par ynluo Of tho bonds in cash for tic
payment Ut tho coupons thoa due taking there
for scrip, hoating 10 per cent interest, secured
by coupons which were placed in the hands OF a
T;rostoo, ;;sa e. t1 e. bo cancelled upon the, redomp-
fourth mortgage; tat aubssqaontly ssaue y {boa
Ing against tho road OF whicI pl they
lad no previous knowledge and, tho proceeds Of
the pd-morlgago bonds proving insufficient
for the equipment Of the road, they issued $245,-
200 iii bouds, which they took at co aud G5 cents,
tlo proceeds Of which were used tor the purchase
Df roliing-stock, the title to which was vested
In company styled the Muucio Transportation
Company. Bald rolling-stock they leased to the
railroad company at an aunuai rontal equivalent
to per cent interest on the bonds, tho rolling
Btock to becomo the property Of the railroad
sompsay on payment Of the bouds.
3 Defendants a!so assert thas tho clear.
their antic'pations, owing to thu Chicago line,
which divorced lumber from the Saginaw Valley
pn which they largely depended. The panic also
injured tue Company severely.
Their proceedings arc claimed to have been
open to all intol eBted parties, and they daolaro
Aas they acted in good faith throughout.
NUMEROUS OTHER ALLEGATIONS
Aha statements we're made, Of minor oonne-
qnence. Datton's sta.omeat is supported By
%aindayiss % OF George Tyson. John W. Brooks,
dwight Foster, John H., Forbes, John a.
HuFnham, Henry s. Russell. mud H. H. Hun
newell, Ct Boston; John Jacob Astor,
Barring Bros. 4 Co., Of New York,
my other prominent Eastern capitalists
n!ateyted me- IN the road also hy IN affidavit Of
sworo TINT. In Ills belief, tho proceedings we're |
bg bpsoagat without authority Of tho German bond
noiaofe, hnd IN the intetcat Of tho Whitewater
sa4ley RAILROAD Company. Several |
LKfrEhs FROM GERMAN nosDuoLoERs |
*efe submitted, expressing satisfaction with the |
management Of tue road
rue proceedings were continued until to-mor- |
the most important Of tue kind oyor tried IN tho
btate, and n some features IL without preoedeot |
Ia the legal history Of Indiana. ~~~
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