The New York herald., 1876-08-20
Inceptive Struggles of the Greenwich
Elevated Railroad Company.
IMPORTANT DECISION BY JUDGE LARREAORR.
A Forced Balance That Did Not
Long Remain Unearthed.
Interesting to Members OF the
National Guard.


road Company recently tried before Judge Larrcmore,
holding Special Term of the Supreme Court decision
was given yesterday, the same being embodied IN q
lengthy clear and exhaustive opinion. The case does
Lot affect rapid transit IN any way, but reveals Il
rather curious chapter Of the carly history oil the
Greenwich Street Elevated Railroai. AS Will be re-
mcmbercd the road originally chartered under the
title Of the West Elevated Railroad Company. The
plaintiff is the of ioryhve first mortgage bonds,
the samo beng secured by mortga2 on the COM
pany's property, made, on August 1885, 10 George
Coo and James H. Benedict. BY this mortgage the road
and franchises conveyed to Coc and Benedict UP
far Thlrieth street. together with all lands then
owned DO acquired the Inc of the road, to be
hold trust Tor the payment Of l. 500 bonds OF $500
each, OF wnch part were those held by tue plat
Tue trustees, OF foreclosure sale. were 10 pur-
chase tho premises Tor tho and benefit OF the bond
holders. upon the written request OF majority OK
tnem, tho right and title to The premises on such pIr
chase vestns In the trustees and no bondholdcr hav
Ing any claim 10 the premises or the proceeds thereof
except Tor his pro rata saic III new company or cor
porition TO be- formed Tor tho aud benefit OF tue
boadhodcrs. Power given the trus-
lees 10 form such new CORPORATION, as tho
majority of the bondhodcrs would declare Tor IN
writins aud TO reconvey the property TO Tins corpo-
ration when formc1 Two Judgments were subsc-
quently obtained against the company respective for
$2l4 400 90 and So 230 o4, and these judgments
execution sale had of all the right tle and in
icrcst which the company had on June =. 1871, or at
my time thereafter TO the premises AT the sale such
Interest purchased by III. lOWs <o,JuO
aud he assigned his purchase to the New York Elc
vaed Railroad Company. ON May 8, 1871, the West
SiGc Elevated Patented Railroad Company its
corporate obligations or that date TO pay the sum OF
E2.39l9 0s on or before May II, 1871, executed
another morg gage the same and other
premises Premises ,neading the road as ,ar as sM'ioh
therein and he authorized 10 forcclosc the mort
gage OF default IN the payment OF the obga
tion. Messrs Coc and Benedict resigned their trus
teeshp, and Cowing appointed July %. 1871,
their successor subsequently Cowing orecosed the
sold, which sale Cowing bought in the property for
S7500CO. receiving deed thereof .rusco for the
benefit OF all the holders Of ihc bonds secured by the
mortgage thus iocclosed Cowing was directed by an
Drder o the COurt, made in thiorcclosurc action
bid for the benefit OF the bondho.dcrs $3.50, COO lie
received S73l 5ls 81 the proceeds of the
There also lorccoscd the mortgage OF May 1871.
On December following sale was made pursuant
TO It's provisions, at which the New York Elevated
Railroad Company became the purchaser at SOC, COO
On November l. 1871, circular WAS mailed by Cowing
to the bondholdcrs under the latter mortgage giving
statement OF the foreclosure proceedings ard sale
nndcr the mortgage OF Angus. l, 1865, and further
that the title ana possessio" OF the property were in
him as trustee, with power 10 hold ana convey the
same, aud asking suggestions as TO the time and man
ncr OF the sale Various parties, ncluGing Cowlng,
holding large majority o. tie FIRST mortgage bonds,
.iu,tea in written request and authority cowing
advertise and sell the road aud property cash IN
trust Tor The benefit OF The bundbolcors Cowing
thereupon sod the property 10 nc New York Elevated
Railroad Company for siOO.O00, wn ch
basis Il cash dividend oil $50 81 declared upon
each OF the lirat mortgage bonds several o these
Railroad Company, Tor which the bonds were received
US part payment according to their dividend value.
Tie plant declined TINS privilege, he claiming that
lhe sale to the company ,iauduIerty and col
lusivcy made and an inadequate consideration.
Tie demands that the properly conveyed to the com
psny may he adudged be held In trust for his
snt and subject to The lien OF the mortgage and that
he have judgment against the defendants Tor the
amount OF his bonds al; d interest reason OF their
!rau anu conspiracy and The violation OF the trust
Alter predatory statement OF the Facts, as gwen
above, Judge la.remore holds that tho New YORK
Elevated Railroad Company acquired by the sales OF
aprI % ISL and DcccmOcr O. 1871, absolute right
pl property III the norlhcriy halt OF the road from
rnrteth Sixticih stree, and ,hc equity O re-
ucniption the sou,hcrly half IRON fnrteh street 10
subject to tl:c lien only Of the hrst mortgage bond
holders aud that The conveyance ol Januarg2 lsl2,
BY Cowing the company Is valid but that the tcs-
timony insufficient 10 warrant indins ,i lraud or
coltusio on Tho part oi the New York Elevated Rail-
road Company. He further holds, regarding the val
ldy aud good faith OF the sale betweca Cowing and
the bonLhuiaers that Co0ing, as trustee receiving com
ensaton Tor his services was bound 10 exercise oru
nary diligence III the management o the trust property,
and that. although he is not Ie.ponsi5ic Tor loss
while acting IN good faith AID without fraud,
he is, nevertheless, personally liable Tor breach
pr neglect OF duty. Ec also holds that
The lainti refused 10 acknowledge the coccendant,
The corporation contemplated by the trust deed, he
is concluded by the sale and conve,anco y: the
corporate property January 1872; that tho trust
decd did authorize or contemplate such salc
that under the circumstances The trustee should have
sought aid and direction Of the Court; that without
any pressing necessity he assumed u responsibility IN
violation OF the trust amt that therefore e Is liable TO
the loss sustained. In cone usion he directs
In favor oi the New York Elevated Railroad
Company for IA dismissal o. The complaint and IN favor
Of james against Cowins individually aud AS trustee
lor tho pro rata share or dividend OF the sum OF
k134. .5lS 81 upon forty Live bonds held by him,
amounting TO s22,oS 10 and interest II was ordered
That the payment such DO made out oi tho
fund, or, in default, by Cowins personally.
IMPORTANT TO BUSINESS MEN.