The New York herald., 1876-10-18
THE UNDERGROUND RAILROAD.

IMPORTANT ACTION BEFORE THE NEW YORK
SUPREME coUIr-THE PRESIDENT OF THE
ROAD SUES FOR A QUARTER OF MILLION
PRETENDED CLAIMs-MR. TMDEN AND HIS
BROTHERS INTERESTED.
PoUGBKEYPsIE, Oct. IT. 1876.
The following important case came up in tho su-
preme Court to-day, before Justice Joseph y. Bar
bard:-
oliver W. Barnes VS.. George H. Brown. John 5.
Schultz Joseph Sciigman, John Q Hoyt Trcnor w.
Park. Andrew Kinney, Charles L. kimball, Grosve-
nor y Lowry, Charles ). Canda and Abla A. se.over.
Hugh l.. Cole, Ii. a. Nelson and NJ A. Fowler OF
counsel John y. Whiting, attorney for defendants s
Brown, Schultz and Kmbal; James 4. Lowry, atior-
ney tor Seligman; james T. SinEott attorney tor
Canda; chltterton & Hubbard, attorneys tor Park ;
Morris, Billings cardoza, attorneys for Scovcr
Porter, Lowry, sorcn stone, attorneys for Lowry,
Hoyt Mckinney; Z. Wheaton, OF COUNSEL = "
Fullerton, OF counsel
fhe plaintin alleged that in 1879 he was President
Of and the owner OF the majority ol mo humber OF
shares OF ihc New York Central Underground Railroad
Company, and also Interested IN a contract with
Byrnc for the construction OF the road that defend
ants Brown and Scligman entered Into contract with
him by winch they acquire the control oi the
road ana Board OF Directors, and he was 10 sell them
his stock ana his interest IN tho Byrnc contract and
was to receive the of co., and IN the event OF
certain amendments passing the Legislature was to
have 1000 shares OF fully paid up stock IN the COM
pnny, witch to bo given him time in
January, 1873; that in January, 1915. the money
laid, and defendant Brown delivered to him Two Ger
,iicates OF stock amounting 10 1000 shares that alter
ward plaintiff ound out that ihls stock not iuy
paid up, but issued 10 persons pretended claims
las plaintin rlamcd) services ana then given TO
plaintiff that John Hoyt received 5oD shares rronor
W. Park 250 Charles J. Canda $50, and others, all
amounting 10 1000 shares, which was gwen ior ad-
vnntcs aud services, and was fraudulent aud worthless
Plaintiff also claimed that after hc had received his
900 shares tho defendants then further combined
against him to prevent HIM from having control OF this
company when the 1000 shares would give him, and
Issued on pretended claims to themselves 400 shares
oi other stock
Painun claimed damages $3.50, 900
The first witness examined was Trenor W, Park, Of
Emma Nine notorIcy, and his Appearance on tho Wit
stand excited much interest He incd that no
resides at Bcnnngton VI, ana on tho Ilth OF Jnnn-
ary 1878, was told that he was director OF the Central
undcrerown Railway Company; he never attended but
one meeting OF tho Board and had never presented a
bill TO the company; he is lawyer ana has been for
some years; hc did not, previous 10 the meet
Ing OF the directors that he offended, authorize
any ono to present bill Tor him; presented
and madc out IN his name, but he hadn't authorized
rendered He testified, however, that he had agent
who was acting for hn, and he presented the BILL but
never by any special request OF witncss.
Judge Nelson, OF counsel Tor Oliver W. Barnes tho
plaintiff, called the above witness to show that the
Iatler's bill. MS presented, was bogus one, and
there several others OF a lixc nature, Judge
Nelson took the ground that all were fraudulent In
addition 10 his testimony as presented above, Mr..
Park iurthor testified that at tho meeting referred
he told the directors ho had rendered service but
had an honest claim OF S25, 900 against tho Under
ground Railroad Company Tor money advanced and
pany and transferred II and received for Of
The funds OF the New York, Boston and Montreal Rail-
road Company.
At th,s juncture witness was asked why he had
made advances to tho Central Underground Railway
Company. He replied quickly, and causing much sur
prise, as lolows:-
had to tho Underground Railway Com
pany II $1,000 be used in procuring certain legislation
informed o the entire that raised,
but the $2IOJD WAS our share.
Then tho question put to him to who hO
meant by our share, and no replied as iollows-
had tcnths of IL, Mr. SeIigmnn tenth Samucl
Tildcn onccnth, anu Mr.. Tden's two brolncrs each
tenth We all interested ia line of railway already
constructed from Chatham -Four Corners to Rutland ar-
lem Extersion).
This fund OF SIS, 900 put into tho hands of Mr.
Duncan TO pay legislative expenses Tor procuring
amendments to the charter 70 secure TO tho Under.
ground Railroad an inlet into New York IN connecllon
with the New York, Boston and Montreal Railroad
On hts cross-cxamnation witness testified that
$40 900 PAID Judge Hilton Tor going TO Albany
mud appearing before the committee.
Tho above testimony was given in straightforward
manner and created Astonishing looks among tho
members OF the Bar.
The next witness called was Mr.. Canda, the Trcasu.
rer Of tho Underground Railroad Company. He tcsti-
fed that although holding the oice OF Treasurer ho
had never anything OF tho S25, 900 alluded TO-
This closed tho testimony whom Justice Barnard or
dercd a nonsut tho grounds that tho original
| tract between Barnes and Brown and Sciigmau was
void for two rcasons.-
Firs-lt purpored to convey the right Of Barnes in
contract to build rord OF which he was President
which was against public policy ana void.
Second-That tho agreement TO transfer the control Of
the Board OF Directors from Barnes TO Brown affected
the rights OF the minority OF the stockholders ard
against public policy and void.
In its remarks the Court WAS severe upon tho
machinatons OF large corporations In which lew men
acI out the rights of the ignorant and innocent giving
their victims no warning whatever The lawyers pres.
cnt worked harmoniousy together to get the record
rrh IL being conceded that tho will 20 tho
General Term.