Delaware tribune. [volume] (Wilmington, Del.) 1867-1877, 1875-04-22
sNs pOrlanl Railroad Gaze.

VITAL QUESTION TO THE INrEREsTs OF MoRToA-
GEES AND BoNDHoLDERs-oAN THE CITIZEN OF
ORE STATE ATTACH THE RAILROAD PROPERTY IN
coRPoRArED ny TWO STATES.
In the United States Circuit Court on satur-
day. before Judges McKennan and Cadwalader,a
Q suit which involved considerations OF tho
greatest Importance to persons interested in the
railroads OF this State came up on the hearing Of
motions in equity, and the Judges, contrary to
their usage, sat until 3 late hour in the after
The suit was brought by Henry Dupont a
citizen Of the State Of Delaware, in behalf OF
himself and all other persons creditors of the
Wilmington and Reading Railroad, against Jacob
and Henry Bushong, partners under the name
and involved the default made by the Whining
ton and Reading Railroad Company, incorporat-
ed by statutes OF Delaware and Pennsylvania, in
the payment Of interest on the bond which fell
due January I, 1874. Both parties being holders
OF these bonds, Bushong Brothers brought suit
sssinst the company in the Court of Common
Pleas OF Derks county, obtained Judgment
for $4,000, and issued an execution
under which the Sheriff Of that coun-
ty levied upon all the property OF
sylvAnia, and advertised the same to be sold on
the 22d Of the present month. Mr.. Dupont
takes the position that all the bondholders have
q common interest in the mortgage security Tor
their claims, and agreed to abide by the means
| therein provided for enforcing payment and
that no one should use security 10 the injury Of
| the other that the sale under this execution
would vest the part OF the road lying in this
State in parties different from and independent
OF those owning it in Delaware, and division
in ownership and control would destroy the val.
| ue and usefulness OF the whole
Again, the effect of this sale, II permitted, viii
| be ruinous to the security for the bonds, as the
title to much Of the road and its franchises as
lies within the limits of this State will be divest
ed Of the lien Of the mortgage, and the value OF
both portions, ~ we'll that within ~ that without
the State, will be destroyed and rendered value
less. II the course adopted by Messrs. Bushone
was warranted by the laws OF Ponnsylvania, AnG
the world knew this was Pennsylvania law, inc
credit OF our railroads would vanish in An In
slant. The complainant WAS represented by Il.
&. McMurtrie, Esq.
The Judges seemed to be impressed with the
gravity Of the question, and were satisfied thai
Mr.. Dupont had strong equity, but had Sc
rious doubts Of their Jurisdiction, inasmuch u
the jurisdiction Of State Court had already 1t
tached. There wAs much speculation AZ to th'
extent to which different acts Of Congress ha'
enlarged the Chancery powers Of the Fedora
Courts, but nothing was said to show cearl
that they possessed the authority to interfer
with the enforcement OF Judgment OF a Stat
Court whose Jurisdiction had first fallen upo
the subject matter. 1t was suggested that til
appointment Of . receiver might be the mean
Of protecting the interests of all parties.
Mr. Bullitt, Of this city, and Mr.. Bser, OF Res
| ding, representing the defendants and . lArg
, proportion OF the bondholdera, expressed them
selves IS entirely willing TO adopt this innm,
ton, adding that their principals, being dissa
isfied with the present mAnAg gsment OF the roat
we're proceeding thus for the purpose Of chang
ing the management, and that, 80 far were the
from desiring to injure Mr. Dupont or any otl
|, or bondholder, that they would willingly co-op'
,, rate in the appointment OF . receiver, III
!. !. Court should think it possessed power to NAL
auch an appointment, a. to which Mr.. Menu
!, the expressed doubts. It wAs finally agree
; that Messrs. Bullitt and Baer would come
= court this week and move for the Appointmel
I | OF q receyer.-Phiiada. Times.