The New York herald., 1877-03-20
AN OLD RAILROAD SUIT.

Some two months ago twelve suits, brought by
various parties against the Lake shore and Michigan
Southern Railroad Company, which have boon In itga
ton for ten years, were tried before Judge Bar
rctt at Special Term Of tho Supreme Court The thir
teenth in this series Of suits brought BY John S.
Prouiy against the deicndants Tho trial OF this
case commenced yesterday before the judge.
Prouty, claiming to be the owner OF Asa shares Of
certain alleged preferred cass Of stock issued by tho
Michigan Southern and Northern Indiana Railroad Com
pany in 1857 brought this suit to- among other things,
compel corporation and its directors 10 first apply
Its future net earnings 10 the payment OF div
idcnds in arrcar upon his stock for the
period between June /, 1857, and February
l. 1853 He charged that company, to relieve IT.
self from It's then pressing liabilities, issued So 00o
OF stock namod guaranteed construction stock, Of
which part entitled TO dividends OF ten per cent
yearly and that by the terms of the certificates Of
shares In connection with the proceedings upon which
tho issue was based. tho payment OF such dividend
was guaranteed by tho company whether any net
earnings wcro realized or not aud il the company
bound declare dividends from year to year then
that an accounting be had and that inc company pay
any deficiency OF its future net earnings before
plying them to paying dividends on common stock
Tho defence is that this beng = foreign corpo-
diction, and that dividends on this stock
could only be paid when the net earnings
applicable thereto realized, and that none were in
iact realized. About seven years ago, pending the
before the first trial, the company first sued
with other companies In other States had or2anizcd
under the Of the Lake Shore and Michigan
Southern Railroad Company. Alter the trial was
cluded the reported IN favor Of plaintiff
an obtained substituting tho Lake Shore
Company defendant, and then judgment was
entered against the referees report for $45 S57 IL
In August 1872 The General Term, on appeal,
affirmed order OF substitution but reversed the
judgment, and then the substitution was reversed
In the Court Of Appeals. Alter series
OF successes and defeats Mr.. Prouty commenced
proceedings again at the point where he had moved
substitution ana obtained an order for judgment
against the original defendant when II had been legally
dead iour years Then the Court of Appeals reversed
that judgment, and the Lake Shore and Michigan
Southern Company again made defendants by
supplemental complaint, and In that form the case IL
now trial. 1t probable that the trial will occupy
several days.
CONTRACTS WITH STOCK BROKERS'.
Henry d. Burkett employed Taylor Brothers for
many years his stock brokers In February, 1S70
a written contract entered into between them, In
which Burkett gave permission 10 his brokers sell
any stock Of his without notice, In case he failed
keep up his margin. In May, 1873, Taylor Brothers
bought on Burkets 200 shares of Chicago and
Rock Island stsck at 1O9H and 1857. The stock bo-
gan decline until the panic OF September, when II
fell 81 Meantime Burkett had put up 800 addi.
tionai margin while the market was still declining
He then left the city and could not be found. The
stock rallied somewhat and sold at eighty three,
Taylor Brothers managing to cover their advances.
Mr.. Burkeu fonnd fault with the sale and brought
SUIT against Taylor Brothers to tho difference
the price which tho stock sold and that
the time OF bringing the suit The complaint
dismissed, and upon appeal from this judgment tho
case came up for argument yesterday, before the
raised the trial. the argument ending with the
Court taking the papers,