New-York tribune., 1875-01-21
BANKING AND FINANCIAL.
THE LAKE SHORE RAILROAD COMPANY. AND RECRN
APPLICATION FOR AN INJUNCTION.

THE LAKE SHORE RAIIROAD COMPANY, AND RECENI
APPLICATION FOR AN INJUNCTION.
TO the EdGtor Of The Tribune.
SIR: The argument recently had in Brooklyn
upon an application made by Jacob Rubino to
Judge Tappen of the Supreme Court for injunc-
ton to restrain the Lake Shore Railroad Company
from the payment OF the recently declared dividend
of 81 per cent having become matter Of public
port as a stock and bondholder of that corporation
beg TO call the attention of your readers to few
facts connection Herewith that have not hitherto
appeared 1t will be borne in mind that in this pro-
ceeding the stock and bondholders of the Lake
Shore Railroad Company arraign the officers of that
Company for not having complied with the terms of
q certain contract whereby they were required to
pay annually into the Union Trust Company
S25OOOO per year since July 1879, making a total
to date of $10O0.00O, before they can make any dv
dend TO the shareholders The Lake Shore Com
pany was represented by very able counsel, Mr.
Burrill, who moved to have the injunction
dissolved on the ground that the plaintiff
held only a small amount of stock, that
lie had come only recently in possession
of such securities. and that he was a tool Of Wall
st. Spectators. Judge Tappen desired to know
from the Lake Shore Company whether or not they
had discharged this sinking fund obligation prompt
ly, and in response Mr.. Burrill read an affidavit,
signed by Mr.. King of tho Union Trust Company,
that the Lake Shoro Railroad Company had paid
into the Union Trust Company $500 bonds Of
the Painesville and Ashtabua Railroad and S51 900
cash, without, however, stating whom such payment
was made. Well, Mr. Editor. these bonds and cash
were paid into the Union Trust Company last Mon
day, all at one time thus showing plainly that but
for this suit the sinking fund would never have
been satisfied. Here the question arises, How was
this money paid and by whom There was present
in court on Tuesday Mr.. Augustus Schell, who has
been for some time and is now an executive officer
OF both the Lake Shore and the Union Trust Com
panies. and who il will be Iecollected was largely
held responsible for the suspension of the latter
Company in the panic lSeptemberl of 1873 in conse-
quence Of his having Withdrawn sinking fund
bonds of the Lake Shore Company to the
amount of S3,000OOO 10 deposit with the
Union Trust Company TO serve private interests
then imperiled, fact which was freely canyassed
i'll Wall-st. at tho time, and caused serious embar-
rassment both TO Lake Shore and Commodore Van.
derbilt, is stiu recollected. This same MI Au-
gustus schel through his counsel wants TO dictate
to ,he Court that it has Jurisdiction to compel
the ulhllment Of an agreement entered into by tho
Lake Shore direction. representing the stockhod-
ers and the bondholdeTs OF that corporation. and
submits the affidavit of Mr. King President of the
Union Trust Company. that the sinking fund has
been satisfied by the deposit Of $is9 900 bonds end
S5llOOO cash, as before mentioned, without giving
the date of such deposit 1t certainly looks as il
this Mondays payment was another movement of
hr. ScbelPs. who understands cross entries SO we'll
tlese two eomDapies occuDyipG the one ofiee-a