The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-06-26

aware of the nature Of the security on
which the bonds were based other than the
set forth In prospectus
submitted to them. In March, 1873, there
were offered In London, through Messrs.
B,schoffsheim & Goldschmidt, bankers OF
that city, $8,250, 900 worth of such bonds,
secured by the mortgage of the railway
company, and to amount together TO more
than $35, 900 Of said bonds tor each snile
of the railway covered by the mortgage In
the prospectus it was represented that the
railway company was formed by. the con-
solidation of several New York lines, and
that, by this consolidation and other works
in progress, one line was formed $50 miles
in length that 200 miles were then in OPP
GRAFTON that SO miles more would be In
working order by June, and that the whole
would be completed by June, 1878 that
the Erie railway company had formed an
alliance with the line for fifty years, OF u
very advantageous character ; that the
capital of the New York, Boston & Mont
real railway company consisted of $12,-
$50, 900 of first mortgage bonds, $l2, 750,-
900 second mortgage bonds, and $l5, 000,-
900 of common stock that the proceeds
of the issue of $3.50, 900 worth of bonds
would be held by Messrs Brown, Sherman
& Seligman, as trustees, Tor completing
the road, and for general purposes of the
consolidation undertaking, and that the
balance of $4,000, 900 of the first mortgage
bonds would not be offered for subscrip-
ton until the main line from New York to
Rutland was opened for public traffic, but
that they together with $6,575, 900 OF
second mortgage bonds and the common
stock of the consolidated company, would
| be held by the same trustees for the ex-
| tinction of all outstanding divisional bonds
and stock of the separate consolidated
| lines, and the surplus be used for the fur
Their development, of the company's liues
and that, according to the prospectus the
| estimated annual revenue of the railway
would be So, 1872, 900.
The prospectus, the plaintiffs allege, was
made by the directors of the company, anc
| produced general, though false, impress
| ion upon the public mind favorable to the
enterprise, and deceived the plaintiffs into
subscribing for and taking the bonds helt
by them. The sale of the bonds under
these alleged circumstances is denounced
in the bill as gross fraud and imposition
on the part of the railway company, and
is sought to reclaim the amount paid By
plaintiffs for the bonds, with interest. /
is further alleged that when the bond
were issued that the New York and Boston
and Duchess and Columbia and Harlem
Extension railway companies, which wer,
to form portion of the line. were insol
vent, and had been for long time previou
to the issuing of the bonds, and that tn
fact of the insolvency was concealed from
the subscribers for the bonds.
1t is also alleged that $3,405, 6S2.52 o
the net proceeds of the subscriptions wa
paid over by Bischoffsheim & Goldschmid
to Brown, Sherman 81 Seligman,as trustee
for disbursements in accordance with tn
terms of the prospectus, and were not az
piled by them to the purposes intended
The bill closes with a long series of inter
rogatories requiring answers from the dc
PENDANTS in relation to all the matter
charged in the bill