The New York herald., 1876-11-15
THE COURTS.
New and important Phase in the Great
Railroad War.
Measures to Arrest the Suicidal
Controversy.
Inspection Of Transfer Books Of The Lake Shore
and Michigan Southern Railroad.

A suit brought by the stockholders OF the Lake
Ehore and Michigan Southern Railroad Company, in
volvng does various other railroad corporations
In the litigation. promises 10 occupy for some time 10
largely The attention OF the courts The suit Is
10 compel the Farmers Loan and Trust Company, the
local transfer OF the Lake shore and Michigan
Southern Railroad Company TO show tho transfer
books and list OF the stockholders OF the road which, Il
appears refused through failure TO obtain the per-
mission to do OF William II. Vanderbilt, Vice Presi-
dent OF the railroad company. Tho up IN
Supreme Court, Chambers, yesterday before Judge
Lawrence, application made on behalf of Russell
Sage, Rufus IIatcn Cammann x Co.. Morris 4 Co. and
others stockholders OF the Lake Shore and Michigan
Southern Railroad Company, order ulrDg the
Farmers Loan and Trust Company, William II. Wander
b and others, directors OF the same, to show
why they should exhibit to the piaints the
fer books OF the railroad company. Accompany ing Tho
TO show cause is an affidavit by Ruins
Hatch, setting forth the objects OF tho lie
says that he and hr. A. ) Peabody, stockholders,
waited upon tho President OF the Farmers Loan and
rrust Company and requested 10 be shown the trans
fer books list OF the stockholders OF tho railroad
company, which refused unless they could obtain
the authorization oil Vice President William IL. Van
dcrbilt; that thcreupon they wrote 10 Sir. Vanderbilt
stating that, owing the depreciation their secu-
rifles caused by The suicidal railroad prose-
cuicd they wished TO communicate with tae other
stockholders with view ol taxing
such course OF Sction; that Mr.. Vanderbilt wrote
reply, declining TO give such authorization, chiefly
the ground that large proportion OF tho stockholders
did not wish TO have tneir known pub ished
that they wrote again. insisting that their request was
legal anu proper that they represented over 10000
oi The stock; that they DAD not want TO pubish The
names and the stockholders had right TO facilities
confer with each other. Alter giving subsequent
correspondence with Sir. Vanderbilt. who still declined
10 give The required permission. the affidavit goes
10 state that Mr. vanderbilt occupies similar posi-
ton in the New York Central ana Hudson River
Eaiirsa Company, the Interests OF which, at
present managed, are IN conflict with ana adverse 10
those OF the Lake Shore ana Michigan Southern Rail-
road Company; that Mr. yauderoit IS largely inter-
ested as proprietor IN the New York Central and
Hudson River Railroad and us dcpunent believes owns
seventy per cent OF It's entire capital stock ana
but small interest IN tue Lake Shore ana Michigan
Southern Railroad Company that deponcnt ana his
associates believe ana he AYERS, Mr.. Vanderbilt
nsing his power Vice presiscn, OF both companies
to ADVANCE tho interests OF the the sacrifice
Of the latter; that The plaintiffs OBJECT is to commu
nicate with the shareholders that they may consult
together 10 protect their property iron iurthcr
prrciation that theNew York Central engaged in
var Of nvalry witi the Pennsylvania. Baltimore aad
mo conf anes, ana IS undcrDiddng The others in
a. attcmpt,.to get the largest share OF through
,ssengcrst and lrcighi and that tho Lake Shore
no advantage, but Is suffering from The contest
luat Mr. Vanderbilt, notwithstanding, is carrying
lhe through freight and passengers transferred from
The New York Central by tho Lake Shore dispropor
tonate and losing rates. In order the through
passengers and freight Tor the New FORK Central
troportonately high rates; that the New orK Cen. .
tral, by this unjust discrimination IN It's
favor, receives more than lis proportion of
through rates while the receipts or through rates
the Lake Shore are correspondingly diminished, and
that from the pronts OF this unjust DIVISION the New
York Central Is ablo 10 maintain It's regular eight per
cent DIVIDEND while the Lake Shore has been forced
paying lis regular eight per dividend, as
heretofore and can pay but nominal dividend; but
The plaintiffs furnished with the names
the stockholders will be taken to pre-
further depreciation and tho so 10
manage as 10 make the stock eight per
cent paying security.
The order was granted and the made rcturnaolo
the goth oil November, when the whole case will
doubtless be argued at length on It's merits.