New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-24
THE COURTS.
NETWORK, BOSTON AND MONTREAL RAIL
WAY.

TON By TIE MANAGERS OF TIE ENrEKh.sh-
HE NETWORK AND BOSTON, DUfciifss AND
CoIUMBIA, AND HARLEM TXIENsIoN ROADS DE-
CIARFDTO HAVE BgEY BANKRUPT At THE TIME
OF THE cONsouDATIOS-RELIEF PRAYED FOR
QUESTIONS CONCERNING DEFAULT IN Nihhisi
AND INSOLVENCY.
The Banque -Egyptienne; Edward
Heutsch, August Heutsch. and Andre Lutschen' eopo
ipg the firm of Heutsch, Lutschcr Co.; Abraham bo
Cauapdo and Nisine DE Cmando, composing the firm 81
T. Carpaudo Coz the soc6te Generate De Creilt INDUS
triel ct Commercial; Joseph f. GunLburg ana hor"o'
Gmzburg composing the firm Of J. T. Gunzourg; Leon
Gay aud Albert Ros,and. composing tue firm Oh Gay
Eoetlni Il Co.; Levy Cr6mieu, Freres & Co., ana u.
Aer 4 Coz all Of Paris, behalf of themselves ahd OF
an other persons similarly situated, who hold any 81 the
- 600 900 Of the socaed first mortgage bonds of e
New-York Boston and Montreal Railway Company hf'e-
matter referred 70. and who shall be enntied W
ayai Themselves OF the benefit OF this suit have heu III
the United states Circut Court through their attorneys
Evarfs, soutlmayd Z CbOate, bill IN equity asuins'
John Crosby Brown william Watts Sherman. jesse seig-
man. William Butler Duncan, James Brown ana 'e"Is'
H. Brown OF New York; Tenor w. Park of Vermont e
New-YorI, Boston and Montreal Hallway Compah! Her-
man II. Batter and william G. looks of New orN'
Frederick Adams OF New-Jcssey and the Farmers Loan
and Trust Company.
The following are the main points OF the b: When the
Plaintiffs respectively became Subscribers for what aie
called nfs nor gage bonds Of the Newly ork, Boston ana
Montreal Railway Company, aud took ana p'u lot INC
they had knowledge respecting the value OF the
bonds or respecting circumstances or ecnd-
ton Of The riiroad enterprises upon which they were
ALLEGED I'D ne secured other than the representations con
! famed IN the prospectus, statements and map oi
/ hat railway. On March If, 1879 there were
of red for public subscription at London, England'
through Messrs Bischofsheim & GoidschIndt pdiheI'
OF that city sG25OoOO worth Of the so-caied nfs'
mortgage Lons which ,pr scented to be portion
80 fhof- bond
gaze CT tie railway company, "and To amount to-elh'f
H. not more than $4,000 said bonds for each we "a
SAID Company. railway covered h. the sad m"r'S's
In the prospectus referred repres nted mat
/ the Ncw-York Boston aud Montreal Railway COMPANY
Wa. formed by the consolidation OF the Ne"-l"A az"
p,stgu Railroad Company. the P-e Plains and Albany
/ Railroad Company. the Putnam and Dutche-s Railroad
Comuanv the Dutchcss aud Columbia Railroad C1npihy'
and The Harlem Exteu. cu harOad Company; that ~
tits consolidation AMI by works IN progress THESE 1871
w.r- formed u1e, including branches 900 niles IA
lengtl; taat 200 niles OF the road were '1Sn
/ in orer3tion: that 80 miles would be
in v,arkn order b. June. and that the whole WIS III
tended 70 completed ia 1873; that the Fri" Railway
| Company considering alliance with the N'W-forh
30. en-. and Montreal Railway Company hdi-l" h'""i'
Tor developing is ia.c with Boston and lie great man
I uf,cfnriug towns Of N-w-Enlltnd, had entered lh'"
working arrangements With that ComuanJ for ~ mrs.
and wou d. moreover. by junction with tie Ne"-forA
Boston and Montreal system" at Fishk haze direct
entrance INTO thc city a. Ne~-lofk, III Addition 10 "'
route br way Of jersey City tLai, ~ la Intimate con
ueoion win the NeV-Yorx, Boston and Montreal an"
with the Atlantic an Crct Western, and O. Ccve.-nd
Coiumaus. Cincinnati and indianapolis Railway, ~
Eric R.iiway Company would lave uuedAleI control oi
tine through trlc OF Uued s,a.es between Tue hirI
and West; that local passenger AMI heisht tiiI'
Of tnr .g York Boston and Montreal Railway Company
would Ice very large; the capital of tic %ew-iofa
/ Boston ana Montreal Railway Company enhss'ra ol
= lr,fo .HD ~ first
second mortgage bonl-, and Sl5,OuO,Cn0 OF common
sto, that tie proceeds OF te coufrlnpiitNd l"" q"
sGesO.ooO would d. hold b. the Gc, ndants John
CT, suy Brown. Will Watts sherman and J' sc Song
man, ss trustees for completing tic CONSTRUCTION ana
for ts general purpose Of the consolidated undrrtaliin5
and that rl, balance o. stjOOJOO0 ~ tc list mortgage
bonds ould hot OF red for sut s"riTtoh until tis
MAN !ue from N.-iorh 20 Rutland Ms opened Tor
pubic e. Gle, lut Tat these loads, together "''A
~ -750oo Of second mortgage bonds and the common
.tocl II ta dated company, would D. hed 10y the
same trustees tor the extinction of al outstanding
divisional bond. auA stock OF the hv" consolidated In -
lI Tie surplus thereof WOdld he U-d Tor ITO fdftrr
Development Of tle line; tno'. according 10 The pros
pcct's dated June -. $50, tie estimated annual
r.vue delre from Tie railway woGd BE- S5,l92,oJO
/ OF Il isGO per lille.
4be rr,,icous rs lie plaintiffs informed ard be-
iicyc" Nas made by Tie directors VI tse railway com
Iany aLd plplucci 2eu.rl though fas, impression
uutr tho public mind syol Bile TIE sad railroad enter
prise" Ry and m cnns, nence Il false, exgscrlilvc
anI dec ptvc representations" the plaintiff, "ere DE-
iIded and uciir into subscribing for ana taxing u'
said bonds, ami Icy submit that tic o.4o'us o.
fhesr bonds COR st.cf and te Disposal ~ Tie SINE
/ 10 t'om uAdog Tie circumstances, involved
eross fraud ana imposition upon them on Tie part 81 sad
railway ,.n,lf.sly and On tie part of the said
trustees Aud the plaintiffs AMI other i.ers OF
SAID bonds are entitled reclaim Ike amount which they
/ paid Tor uc sliuc," and 10 have II r.
/ funded with interest. The plaintifs Charge the
/ fict TO bc, thai when the sad prospectus
was issued, AID said bonds were offered
for pubic subscription. The Ne"-i"rS ana
Dastau. al Duchos, aad Columbia. and Harlem EX-
tension Eulgay Companies were nao'cni, aad had
been iusolyent Tor considerable period OF time anterior
10 fhaf event And thr plaintiffs say that the fact NJ
see venry wax concealed frsm them, aud. ~ they
eve from thc oi the SAID bonds. and wac
81 lfey uuknpvu and un-u peced; MID thai "thc TACT
d. s insolvency. al. il c.acealmcut Jy the ohiers 81
the saiu railway company, constituted additional IN
cd,nfs nul their pait in offering the said bonds
! iar public suhscI1 rtion."
after deduct.ng IRON the net proceeds OF the sad
- 100000 bonds tn .nn OF GI.-s-O D. ID pay ah'e
out of sucu proceeds 10 Bcnoaslem Goid-chmdt f'i
,,..,.s ful,ls D. ia iu In anticipation Of the
sud cou oldatc, an 1T the issuing Of the h.t mort
gaze bonds and. cr .escrvug IN tie hands Of Bi'eh"h
sncm 4 Ooldsc uuIdt 4 certain amount out Of tie net
proceeds Oh 81 the Interest Sp"n TIC s4d oOni7
/ to IaD l, 1871, tho sum OF sJiOJ,6-- % ~ tl'
said proceeds ~ds paid over D} achnlS.ci a '"iu
schmidt 10 ami received by John Crosuy Brown. william
Watts Sherman auI jesse .ongni trustees i"r the
disbursement same, N accordance with the ferns
u Tie sad prospectus, v.cn sum VA, Tust iULd ID tiie
hands al tic sail tis't, winch they were hound to ai
Div 40 the construction and cuIprtion of TIE unfinished
trtiis OF the YORK, =, ston and Moatrca Railway
III preference 20 opler raIpose." They applied, Lo"
ever. Only "a CONF lsii4ycly small pOrLOn" OF that
/ am li; lOr tEit iur1",se.
Att,r q, ncly charging ice d-;eatlnts with fraud in