New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-16
ERIE LITIGATION.
RECEIVER JEWETT GRANTED MORE POW
Frs

Frs.
NEw PROCEEDING TO PROTECT BoSDBoLDERs-
SUITS To FORECi@sE TIE FIFTH MORTGAGE AND
THc CONSOLIDATED OBSERVATION-DISCLOSURES Oh
DORMaN b. EaTDN-luGH j. JEWEIf Az
POINTED RECEIVER IN THESE SUITS. WITH AID
OPTIONAL RIGHTS
Two suits have been begun against the
Erie Railway 10 forccose Of its mortgages. One is
brought by c. Bancroft Davis, in which only the Eric
Railway. the Farmcrs' Loan and Trust COMPANY and
James Brown are Ioaie defendants. The paintln sues
stee of the fifth mort and Of what Is known us
the supplemental mortgage lie sets forth 1T length the
organization % the Company and rs powers arr extent,
aud ii present business. He then states the original
mortgages which the old Erie Railroad, of which the
present Erie Railway Is the made ne follows
fist mort gage made in 1877, Of which g. ls30oO II
outstanding. .-..
second mortgage made in l. 10. OF which S2.17i,00o
third mortgage made in s53 of which sf,s5e,ooo s
outstanding. .
fourth mortgage made in 1857 of which 81, 927, 900
is outstanding.
OF these last two mortgages plaintiff and James Brown
trustees, hut thea there f.rears After
these mortgages the firth mortgage. for %o,OOo,ooo,
made, OF which plaintiff and James Brown are also
trustees On this S7oo.50) is still outstanding. In aid
Of this supplemental mortgage was issued, milking
the mort gage lieu future acquired property but no
bonds were issued it, Ga this mortgage default has
been made.
On these mort cages foreclosure was had IN 1873; but
after Tire reorganization OF the Company under that fore
closure the mortgages. plaintiff claims, were restored
10 their full position OF liens the whole Of the property
OF the corporation.
Default having been made in the payment OF interest,
aintT prays the trustees be given possession OF the
Iic Railway property that receiver he appointed an
account taken, foreclosure ordered, and such othef
relief granted may be proper. Henry A. Taller appears
for the plaintiff Mr. Brown is made defendant, is de-
clinng Ia join IN the suit
The complaint of the Farmers Loan and Trust Com
pany il not on c hut It's substance appears in an eff
dayit by r. G. Ra-ton. President Of that Company, and
order by Judge Donohue. Following are the main
features OF Mr.. I:alstoD's affidavit:
al giscd by counsel that the rights of The holders
Of bonds secured by the indenes cf The Farmers Loan
and Trust Company are SERIOUSLY imperinu W ,'o ~.
dency Of the suit of tho People 81 The STATE OF Newfoik
against tina, Company The holders Of these pohs re-
Widely sc3ttcroj Fac Fararrs' loan aud Trust
5 g,yp 9s incnbent upon them to take whatever
measures may appear TO bc necessary IN such an "a
gcncy in orr To insure ne protection ana i,,s.i ,,"S
te norgagcd pIcmisos. and t9c due appIic'iion 81
thereof to the purpose for which ,hey Wc" NOR
Tne Company is advised 20 ask leave I" li'liito quo
prosecute Inc ordinary nit Of foreclosure rs being alone
appropriate TO the determination Of ID" Company y gus
a. trustee ia tie premises, and 81 giving Sdch l.i,ei Dc
fhe present Receiver Hugh j. Jewct. may be extended
to and may embrace the action oi foreclosure - pVna
Following is the substance of the order issued by Judge
Donohue:
reasons for Granting the order Dee Gays: ,,,r T.
Now motion OF Mr. Turner attorney Tor pi''n''"'"
J. That the authority of the Hon Hugh Jeweit now G
by him possessed I" "lnI'te ,i' ror 1 ~ lin ~
rcccivorof the samc, be als' possessed ny nun W. ,'n
suit ana as under the two mortgages mrntionah
i'm tlp complaint in this sat FAR Is tn same ah,cts ne
nortgagcd property, rghis o. iiaml''-' NeI'' "'o'
H. That FOR the special protection Of those secured PA
sad mort SHes in tAer ,csd aIu ei''," 'i.'i 9',
j"w,ti is brit by appointed rec aver Oi Vac. ID' pI
er, real ana personal leases, uur a. eos poo"s ana
contract rights, tolls, income ana t;ihrh7'' n 'h
fi1,d covered by either az sad m1tS's = OF upon
which either IS lien; and thai as such receiver hr IS
hereby authezed ~ to denai reeve ,p eniTlgt
60 70 rnn ard oerain the ROAD ana lIso i' '"n'Pl
90 10 preserve ii Posee any S1p III foou ni" ur
l.ci 'itic and dat he paw interest as It
D. cah,s a.e bonds sccU 81 by uora1sc rr.'f Y" S'
he may hlh reasonably mec".fary ana - oismss ~"
.aic 10 To make AMI enforce APPROPRIATE 'ohE'11.'
or limited periods, which siiiil oe "ioP.ei ~ b"'
the oiirui aud economical operation al Tue sa r''H
i!l ;clci and freight baaloe and other cX's' 90 To
take and ins'itutc Is e may d"'I n''iui va ,'"' sl1
a. roc,.tius- he ndy by counsel he raSOnahls ai'i"d
90 hc necessary and proper III the aiPr"p-" us"i"iit
ms any rreeycr. and deen pna rest an, r a
.uth acts an make such pgymon's a. me- b. c,sJIy
pr.,ory tn, CORPORATE existence OF Tie trie Runway
IT, Fla, said receiver nle bond FOR iaii4.a Dis
cl.afec his dntie>l in the sun 81 T"jVOv WIN s"'-
ti"- approved ny u justice OF tni0 court 49,,
~ Thai a. soon practicable after entering upon the
discharge his duty, inc receiver l' an in'e"y "-
be NAV be able, Of al properly rgnts, AM l"'"hi7es
cnNcfcd by said Iogfga.c~, or elmer oil iien. - -,
Tao order directs tnat TIE receiver shaU Keep
Dr.porarcoun directed III ;hc ora appointing LIN
receiver 81 the Erie Ha ivay ompan! INT Jain' (.
spe,c Ia appointed referee 20 pass his accounts "o''
time 10 .imc.
+ similar Or!cr granted IN the first mentioned SUIT
Dorinan y. Eaton has pat IA an answer on behalf Of
the bandhoders under mort ~ the Buffalo, Brad
ford and Pitt shurg Road, Iold substantially blt ana
owned by The Eric Railway, AMI whose bonds were guar
an,eei hy that Company, claiming the protection Of the
Cont FOX the bJnihodeTs Ter the mortgage of that