Wilmington daily commercial., 1875-04-19
FIRST EDITION.
important Railroad Case.

| VITAL QUESTION TO THE INTEREsTB OF hoRToA-
GEES AND BoNDHoLDERs-cAN THE CITIZEN OF
ONE State ATTACH THE RAILROAD PROPERTY IN
CohPoRATED By TWO srATEs.
In the United States Circuit Court on Satur-
day. before Judges McKennan and Cadwalader, a
a suit which involved considerations OF the
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 late hour in the after
noon to give 1t a hearing.
Tho 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
of Bushong Il Brother citizens of Pennsylvania,
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 /, 1874. Both parties being holders
of these bonds, Bushong Brothers brought suit
against the company in the Court OF Common
Pleas OF Berka county, obtained Judgment
under which the Sheriff OF that coun-
ty levied upon all the property OF
the company lying within the State of Penn
sylvania, and advertised the same to be sold on
the 22d of the present month. MIR. Dupont
takes the position that all the bondholders have
their claims, and agreed to abide by the means
therein provided for enforcing payment, and
that no one should use security to 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, If permitted, will
be ruinous to the security for the bonds, as the
la tn an m of a franchises
lies within the limits Of this State will be diyest-
ed of the lien OF the mortgage, and the value OF
both portions,as we'll that within rs that without
the State, will be destroyed and rendered value
less. II the course adopted by Messrs. Bushong
was warranted by the laws of Pennsylvania, and
the world knew this was Pennsylvania law, the
credit of our railroads would vanish in an in
stant The complainant was represented by
$. McMurtrie, Esq.
The Judges seemed to be impressed with the
gravity of the question, and were satisfied that
Mr.. Dupont had strong equity, but had Be-
rous doubts of their jurisdiction, lnasmuch as
the jurisdiction of a State Court had already at
tached. There was much speculation AZ to the
extent to which different acts of Congress had
enlarged the Chancery powers of the Federal
Courts, but nothing WAS eaid to show clearly
that they possessed the authority to Interfere
with the enforcement OF a Judgment OF state
Court whose jurisdiction had first fallen upon
the subject matter 1t was suggested that the
appointment of a receiver might be the means
OF protecting the interests of all parties
Mr.. Bullitt, of this city, and Mr.. Baer, OF lea
ding, representing the defendants and large
proportion of the bondholders, expressed them
selves as entirely willing to adopt this intma-
ton. adding that their principals, being dissat-
isiied with the present management of the road,
were proceeding thus for the purpose OF chang
ing tho management, and that 30 far were they
from desiring to injure Mr.. Dupont or any 9TH
or bondhoder, that they would willingly co.ope-
rate i'll the appointment of receiver, II the
Court should think it possessed power to make
such an appointment. as to which Mr.. McMur-
trie expressed doubts 1t was finally agreed
that Messrs Bulltt and Baer would come in
court this week and move for the appointment
Of a receiyer.--Phiidtd. Times.