The New York herald., 1876-10-05
THE RAILROAD WAR.

n T. RAlLROAD w AK.
IMPORTANT LEGAL OPINION on THE LIABILITY
or RAILROAD DIRECTORS TO STOCKHOLDERS.
The proposed behalf OF the 500 stock ders
OF tho Michigan Central Railroad Company and the
800 stockholders OF the Lake Shore against the d
rectors OF both, which been already oun In the
HERALD 10 now u seems. taking substantial form aud
organization. IL IS claimed behalf OF the stock
holders and those spresenting them that during sew
eraI years pasrn Michigan Central directors, who at
the last election resepted little over 50 600 900
Of sisooooo, stock, have paid about IS 900 600
uniawully 30 other branch roads, and aro pay
ing out annually nearly 81. 600 ooo with equal
want OF authority, in violation OF Law, apd
direct fraud OF tho stockholders, into whose pockets
tho money thus unlawtuliy pad should xo, These
proceedings are II socms, being Initiated behalf OF
the stockholders OF these companies under prin
cples OF Law holding directors OF railway companies
a strict responsibility trustees appointed by tho
Courts. In violation OF this principle ana OF their
authority Is claimed that after the present Michigan
Central directors had been elected they passed a
resolution declaring the company's Obligations
10 the branch roads equally binding az It's
own obligations Tho parent road Of which
they wore directors, among which Obligations
are bonds OF the branch roads taken for
iron and othor Supplies furnished those roads. and at
u discount reaching in some Instances TO nearly my
per cent This principle OF law, though rarely ad
vanced sought TO be enforced hitherto the
opinion of experienced lawyers 10 DO we'll settled In
conformity with the wishes OF those acting for them
selves and other stockholders, and fortly lnom in
their proceedings IL was submitted 30 Mr. II. s. Ben-
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