New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-27

eXccltlOn thercOf,
sovency of the Atlantic and Great Western karoasa
Company and the appointment OF receiver OF It's road
nmoaSy cams and insists uon tho validity OF the
lease that the same did 70 into effect ana oper4on Anu
that large sum OF money Is due IRON t G tat
this pretended lease should be adudged to 90 yold anu
that accounting should be lad in respect OF any t
actions had under the same. M
The Erie hallway Company on or about NOV,
of per cent on the preferred of the Company and
issued therefor certain scrip, bearing interest anu Pnl
able at tain time therein named The plaintIu IS III
formed and believes that no dividend within the trre
Intent and meaning OF the law had been earned on tn
said preferred stocx and that thu scrip so issued was anu
Illegal and void; that an accounting should nc n' n
the premises. the holders OF tue -cTip When
should be made parties 10 this action, ana the scrp uo
nyered up to be Cancelled. .,
The directors of tine Company. or about Feb H.
Gd aecs sa - " s Of the company
amounting 20 S29s.791 %, and a dividend or ls pei
pany amounting to 81 1865 900 The plaintiff is Informed
and believes that these dividends were not earned anu
properly declared and he is advised that tere
should be an accounting In the premises III oruer W..
may be- made known whether the dividends were declared
should appear whether the sums so paid can anu
should he restored TO the treasury OF the company.
The plaintiff further alleges that the current net IN
come OF the said Company, from the earnings of its rn
road and property for many years last past mas NOT
the current obligations of the said Company az they
matllrcd that these obligations have from time 70 ~
temporary loans, known as CAL loans, on Wlc an ea
orbant rate OF interest has been regularly PAID, ana
which las been rendered much ETtdcT .inu Hi"iN
burdensome by the necessity of frequently renew
ing the loans, and in the next place place sd ny
to the discharge Of current obligations That, in
consequence of this mode OF dealing with the ndeDed
been discharged and diminished to any extent bat on the
contrary been continued at enormous expense 70
in the aggrcee The CAPITAL stock Of the Company has
not been purchased and held for Investment but mas
been dealt by the public for speculative purposes
merely consequence of the stock being 30 used ana
dealt with large number OF persons are constantly III
attacking the credit OF the Company, promoting
hostile and publications. and by hostile litigation
otherwise damaging its credit and njuring s business
The unfavorab!e influence OF this class OF persons Is not
counteractsd neurazed by the influence OF anotner
class of SPECTATORS whose interest II Is from time to time
to enhance the value OF STOCK. ,.,. n, a.,
efforts Of the President and Directors OF tine Company To
maintain the credit and promote the prosperity Oh ue
Company, tue Company has, in TACT been lisoyeht ~
more than one wear last past, and has, In fact not paid
its current Indebtedness but has merely chan ed the FORM
and character thereof as lereneofe sac1n anu tIi
danger OF sustaining irreparaDle damage by thc waste
and destruction of its property The net earnings Of the
Company since the annual election, in July, Isl J. to the
154 10 Dnn the same time the current cations of
the Company for interest and rental have amounted to
abOut 81 7S4911. In addition 10 such obligations Tue
boating debt of the Company unsecured and maturing
from time to was at the date last annual cleo
ton. in July, 1874 about s3OOO,0OO In the moan time
tnc boating debt of the Company has been somewhat re-
duced but not from and by the application OF earnings
but from and by tho application CT the proceeds OF
bonds sold the rate and sacrifice herenbefore stated
by reason whereof the debt OF the Company. though
changed FORM has not been diminished. but, on the
contrary. has been increased IN amount And AT no time
during The period aforesaid, period long anterior
thereto has the Company been In financial condition 10
pay its current Obligations OF various kinds Is thcy ma
tllfed
The amount now due to tho servants, employees, and
agents of Company represented by the payrols OF
the company is about the sum OF 81 Os6,S9l 81 which
amount includes and salaries due from March OF
the present year 10 the present time Ihere is 40" que
from Company 10 sundry persons for materials ana
supplies. about the sum of Sl500o0o There is also
owing from the Company TO sndy persons III respect 10
bills payable, called or unsecured floating debt about
the sum OF Ss9o,ls9 81. which said bills payable
intervals The current earnings OF the Com
pany are no more than sufficient to pay current
ated TO the payment OF the indebtedness The Only avail
able for the satisfaction OF the said Indebtedness
any part thereof consists OF stocks ana bonus 70 tne
nominal amount Of about 100000, but OF uncertain
specified, the Company - ndcD IN reSpcct Gi e. o ana
loans called 10 the amount OF about 81
and has deposit with the several creditors OF the
Company in respect Of such Indebtedness securities
OF various kinds mainly IN stocks anu bonds OF
indebtedness but which securities. II sold
corng the tenor OF the pledge FOR default III payment
thereof and II is essential to the interests OF the ON
and to the public mat the said seGrs s 0G
payment OF the respective debts to secure whch the
pledged on the lst OF June next ensuing, ac
mortgage bonds, there will become due and payable
senannua installment of interest, amounting TO S9J3
100 40 being al the rae of seven per cent per ani ON
the dollar Sl44oO,000, OF the bonds actually Is
sued and OF which the company as herenbeore stated,
and fraudulent conduct OF the parties before
mentioned TO whom the negotiation thereof in London
was nrlsted by the said Company. Includ ne the IN
terest last mentioned ard excluding tina "i,.ons OF
the Company hereinbefore specified and presently due
obligations Of the said Company will mature and become
payable between the date hereof and the first las OF
900 600 and the estimated receipts Of the Company,
from earnings and all other sources, according to an es
sum of 81 58l 27l 81. And, consequently, tie rcSo1pts
al the
maturing in the mean time
This Is great measure due to extraordinary
ammunition the current receipts or the Company III
couse1uence of the pgexsing rivalry ana conf ehOh
between the three other great socaed trunk lines OF
railroad all OF which are, from tho situation ana ocy
councillors with and rivals OF the Erie Railway
COMPANY and which rivalry and competition has com
pe,ed the said Company for considerable period last
past transport freight and passengers al
tive rates and also In great measure 10 great GlHh-
ton n Ii g amount of trade and commerce carried or IN
the country generally and especially between Tie Last
sidcred il anfesy appears, and the fact So that tne
defendant the Erie Railway Company is and for more
than ono year past has been wholly in'vent ana
las during that time, within the time intent and Lean
ing of the statute in such Case made and provided ne
Of debt and that re said Company aHt will con,
time De- and that unless the relief hereafter prayed
for he q anted this Court, the public Interest rs wen
as e interest OF all persons being stockholders or cred
itOrs OF the Company, VIII suHer rrclhTipe ZOE an
damage by the waste and destruction OF the property OF
the Company, and the suspension OF the awlui business
thereof. to- .,o. ,horo are
The palntln alleges, anu inc ~ -p, .nos
emnoved In and about the operation OF the said ROAD
more than 900 persons in various capacities AS ser
ants workmen agents. and employees aIri by reason OF
the failure OF the Company TO pay the wages OF the sau
persons according the tenor OF It's obligations TO them
they have threatened leave the service
of the Company thus not only preventing the Company
from performing it's duties TO The public. ana Exposing
the property thereof TO Imminent danger OF waste ana
destrucOn but the additional danger from lawiess
violence at hands Of large body Of suffering and e1
asperated men. 80 =, - ,ors
The Company is nomnally governed by an enormous
capital stock which represents no value ana Is hi eacn
subject 10 the POWER and capriccs Of sreculato
who have no real interest in its welfare, and may DC
gre ATTY benefited by its bankruptcy. 80 -
The COMPANY ON OF being Obliged TO stop pay
ment even in form and Of being obliged to make ceial
in the payment OF interest Its said mortgage bonus
Immediately thereafter the plaintiff Is informed anu
has reason 70 believe multiplicity OF actions OF dneren
kinds and in respect Of ali and singular the premises VIII
rocdaI ne