The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-03-07
TILE DELAWARE AND HI DSON
.fNDERSON's cH fRGES iGfTNST TIfE
CORPOR fITON'S OTIICERS.
The Directors Denial Before Judge Law
renee that they Have sunk Millions of
Money Judue wrencc's serious Doubts

Money Judge Lawrencc's serious Doubts.
The motion for a receiver of the Delaware
and Hudson Canal Company was argued yes
tcrday before Judge Lawrence. The plaintiff
charges that the oil rcrs Of the company have
spuandcrcd and msapplci its moneys in vari-
Gus ways-buying coal. leasing railroads Mt OK
travagant rates. including the Rensselaer, and
Saratoga. the Albany and Susuuchnnnn and tho
Now York and Canada roads-and that the COM
pany is practically insolvcnt. the amount Of the
floating debt exceeding the cash assets and the
funded debt and stock exceeding the value Of
the companys property bya very lnrgc amount
The ailllavits Of two accountants aver that
when the Rensselaer, and Saratoga road was
leased, the stock had been In 'rcascd frem $780,
600 to sG.0OO,0O0 without any adequate increase
of value. II Is also charged that the Delaware
and Hudson Company supplied all the money
for building the Jefferson Railroad. receiving
in return inadequate securities. while the Eric
Hallway Company obtained the lease of that
The Delaware and Hudson Canal Company in
their answer deny mat the plnintln, Henry IL:
the time of beginning the suit. although aitcr-
ward loo share wrr,' tlan~i rr'd tc him On the
have sluundrred Tn" compnnvs money. and
say thnt the ehnrgr that the cumpnnv'- odil'r
in CpTtluult street does NOT nay two nnr cent.
ON liz cost Is untrur;yt They admit that in tho
current dcpr. --ion ol husiu 80 some of IL is un-
/ occupied. Whnu the erection of the stru furn
WINS begun In 1913, the Nulu" Oi such real cstat'
/ WIS hirhund ~ 'Hdtly yulvuurini. hut the saiabc
and r'ntihle value uf all such property has TOM
# porlrily declined since tnr panic ut 1873. The
/ company had legal authority g. lDa-' the Al
+ hany and Susquchanua and lt'n~-"lder and
Saratoga Railroad and these acts Vrrn done in
good faith. By the terms Of the Ions - the CONF
/ aann, ,n,nr,s, ON e. $40 400 nf Albany and S,is.
/ qurhanna stock auh s6.Oij.upn of it, mortgage,
| and eight per cent. N.,un S6.SJi.lOO oi Nrns-
saiarr and Saratoga sio~k. ami seven per cent
| on 81 uun 400 col its mortga~'. max ing an aggrc-
| KAT" of sls 3pg tOnuud no more Of the securities
NJ M twp rompanios 4 has guaranteed. instead
of s2B 900 Ounns .lrErd. d.oi which drionduui itself
holds s2uI2HO lti- admit ted that thcs' two
! roads taken together have been thus far unnhic
| t. pay IN full their operating expense AMI ih"
| guaranteed interest. the deficiency being sll2-
! 5ljOj. Yet the lon-'s ar" ot great ben n. tO the
| country and necessary To- It's usos ani hu-in"
] enabling IT To- transport its cuul- TO- market and
To- increase and extend it- trade ana profits this
advantage EXCEEDING the incidental and tempo
rary outlay. The not profits ON coal sold
1873 .jGp .j7s -: in 1874 sj2i 2a5; in 1875.
q nsnuel: iu lsi6. s3f3uln. WITH the revival
oi trad" th" road will yield large profits
The wrongful guaranty of siuDnNlO ~ the
| bonds of thr N'w YORK and Canada Railroad Is
also denied. u- w"ll as the alleged wrongful
purchase of 81 .ODu.uOO of TINT roads stock The
| company made u perpetual lease oi tuat road
guarantees referred ~ w'r' righiiully made.
these stocks ami bonds repr'-"ntlng moneys
aiuaily expended. IL coupany selling them
Win IT, euar.ni '". 1hr h"n'- rrnlNNd t3i3u.
7ip. All tiHe-n Guarantees N re N.u.lH -,i il- 10
get better prist- fur TIA" stocks and hun IT,
,nrminl. of Mr Nnw YDrk and conn. il
road last vour. Instead Of hriug sl2uip.
~ snt forth 10y tho plant iiw.re s.iA iisuj; the
sim in H. inianry. ami ly lbs means the COM
pany ha- rea he'd now anl Naluahi- mH rk"i- for
iug. 80 that ia" indirect h'u"ilt viii moro than
count"rlalanre thu temporary loss from the oN-
earnings of the company Inst year from ii- coal
business ana ca-unl tolls, ~, were siN2l. =