The New York herald., 1876-02-11
MILWAUKEE, AND ST. PAUL RAIL-
ROAD BONDS.

decision was given by Judge Van Brunt, Of the
Court OF Common Pleas, yesterday in the suit brought
by Russell Sage against Washington R. vermlye
David A. Trowbrdge, Latham 4 Fisk Donald Mckay
Luther c. Clark, George V. Clark John d. Maxwell
David Crawford, Harry E. Dodge, George Dennison.
Francis skiddy Sheppard Candy and Levi Parsons The
complainant sets forth that December 1872 Dennison
skddy, Candy and Parsons borrowed from him sixty
1--WE one thousand dollar bonds and seventeen tive thou
sand dollar bonds of the Milwaukee and ST. Paul Rail-
way Company, bearing date July 1861 payable July
l. lS6Si that the bonds wero issued as security on
mortgage another division Of the road that the bor
rowcrs agreed TO return the bonds 10 plantn the io
loving April, with the matured coupons and two and
onehaf per cent commission ior their use
that Il was agreed $ls00oO Missouri, Kansas aud
Texas Railroad Company bonds should be deposited as
security, and In Of default of the agreement that
plaintiff could for any unpaid balance that the Mil
waukee bonds delivered by order of the last mon
toned defendants to David Crawford, one OF the firm OF
Clark, Dodge Co. who knew OF the agreement, to re-
turn them, but that deiendants failed to return
them. Clark Dodge Co., VermIye Co., and
Dennison, Skddy, Candy and Parsons charged with
retaining the bonds in fraud OF the plaintiff, and are
charged with transferring the bonds having coupons
attached, to Vermye Co., the latter giving no con-
sideraton therefor and being of the contract 10
return the bonds to plantff Plaintiff asks for
counting, commission and liberty to sell the col
hterals, SC.
The answer of Clark, Dodge & Co., who are made
the principal defendants, is that Dennfson, Skiddy,
Candy and Parsons the Executive Committee ofthe
Land Grant and Railway Trust Company which was
tnen DululnR tnc MSSOur1, Kansas ana TcxaS roau:
that Crawford, member of the firm OF Clark, Dodge
4 Co, treasurer OF the Land Grant and Railway
Trust Company and, he says he arranged that, as
the bonds OF that railroad company were selling
slowly ho went TO Russell Sage Co. and got loan
OF its bonds OF tho Milwaukee Company, which being
completed road, easier to raise money on; that
tho Executive Committee arranged there should be
such loan and that $50 of the Missouri Kansas and
Texas Company's bonds should be deposited as col
lateras and their own personal notes for
s1500C0 Sage further says that this borrow
ing was TO be met by two and a half
per cent commission, and that there was an
agreement to return these bonds to which Clark,
Dodge Co. not partners They pledged these
bonds with CLARK, Dodge Co for general advances by
that house to the Lana Grant Company and when spring
came around, he Crawford) behalf OF the Land
Grant Company, went around to Sage h Co to allow
the arrangement to stand open, and that Mr. Sage
sented. Clark, Dodge Co. say they were entitled to
plodgc these bonds; had parted with them long
ago; that the Land Grant Company were the only par
ties they knew the transaction and that said parties
owed them $393 900.
on the examination before and trial of Crawford and
Dodge they declined produce their books to show 10
whom these bonds sold for whom they collected
the coupons and Judge Van Brunt directed that If all
this part OF the answer should DO stricken out they
need not answer these questions; otherwise they
allowed. Clark, Dodge Co say the only relation OF
Vermilye Co to the matter Is that when the coupons
were sent TO them for collection IL was thought better
they should collect thom, but that Verhiye Co. have
mover held tho bonds.