The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-03-07
Application for Receiver of the
Delaware and Hudson.
DOOM OF THE S'rII LWELL ACT
Abram HoOley'e Eetat e--The
Whiskey Prosecution.
MARITAL INFELICITIES

ceiyer appointed to take charge of the affairs OF the
Delaware and Hudson Canal Company was heard yes
tcr,ay by Judge Lawrence, in supreme Court, Cham
bsrs. FIX Judge Bosworih Mr.. j. Il. Fellows and MIR.
j.. 4. Brown appeared Tor the plaintiff and Mr. Joseph
H. choate for the company. The court room was
crowded with stockholders and other interested spec
tators Ex-Judgc Bosworlh in opening the proceed
ings application was made on the broad
ground that By the present management tho company
had boon reduced 10 practical insolvency. He pro-
cccded TO read tho complaint OH which the application
was aud the aldavits 0. the TWO accountants all
OF WHICH have already been published IN the HERALD
Their substance was that through msmanagcmcnt tho
company owed about So, ooO 600 than it could
pa # called upon to settle up It's affairs at once.
Mr. Choarc read long and forciblc answer denying
the allegations OF the plaintiff atm, and giving what
hc clamcd truc statement OF the company 8
affairs lie read an affidavit sisncd by the Board OF
Managers of the company setting forth that they had
read the affidavit declaring Insolvency, and that tho
same was utterly without ouudaton as the corpora
ton was in condition pay all its debts and leave
large surplus TO its stockholders. This was followed
by an affidavit rom President Dixon stating that he
chad every reason to believe did believe that tho
action had been commenced and prosecuted without
any cxpec al Tor the part OF the paintIn to obtain
the appointment of a receiver, but SIMPLY Tor the pur
pose OF '.bcarng' the stock oil the corporation in the
market
MPEcUSIoUs sTockHOLDEf.
He further stated that had caused inquiry TO BIO
made as tho palntif and from tue Information OBJ
lancd believed the latter had no stand whatever as
man Of business. BY certificate OF the County
Ccrs il appeared that there judgments record
against him in the courts OF this city for clothing
board and things and Mr.. Dixon believed that
hc had been employed by other parties 10 prosecute
tho action. The County Clerks certificate which was
presented showed series OF tho Judgments referred
TO, beginning with one filed IN Tho Marine
grocery firm tor $500; the next was for $500,
obtained in the Superior Court by fashionable
taor third obtained the Court OF Com mon Pleas
lor SAB fourth for $500, fifth for $500 in tho
Superior Court and there were Two others Obtained
nv the proprIctors 81 the Winasor House for board
bills These amounted TO S1s7 and $3.50 respectively.
IL was, moreover declared that Mr.. Anderson owned
stock in the company when he began action against
1t; but week later he Became possessed OF my
shares His name 1t was said, does not appear upon
its books at all PRESIDENT Dixons affidavit went on
to state that the method pursued by the hrod ac-
countunt OF the plaintiff upon whose AFFIDAVIT tho APP
pcatlon based, was to count the entire capital OF
the company-S20. 600 600 one debt. The annual
report AFFAIRS OF the corporation, published the
20h of last month, was true statement and showed
1t I've perfectly solvent The property possessed by
the company in Pennsylvania alone was worth
SIS, 900 900 over and above all encumbrances
THE JEFFERSON bonds NOT GUARANTEED
The $3.50 900 OF Jefferson Railroad bonds referred to
in the complaint having been taken and guaranteed
By the Delaware and HUDSON Company. were not
guaranteed ut ALL but simply held as security Tor
loan which corporation thought OF making but did
not In reply 10 the statement that the company
had debt OF 100 of its cash assets the
affidavit rcclted that there hand 500 QUO worth
OF coal which WAS not connied, and II that commodity
ready for Shipment could not he accounted u cash
asset counsel wanted to know what coult be- except
actual coin.
An affidavit oiThomas Dickson, director OF the Albany
ana Rensselaer, Railroad, setting iorth the prospects
OF that corporation It's relation TO the defendant as
hopeful. read. Tue affairs OF the other roads III
which tho defendant had invested were shown by counsel
10 be IN much spcrous condition than had been
stated by paihiil. he accountant had IN making up
his accounts, Mr. Choae stid altogether forgotten
thai the Delaware and Hudson Company had received
IN the month Of January ABOUT $5O0,OOO Tho COM
The years 1878 and 1876 IN Inc affidavit OF the
accountant were, Mr.. Choatc Concndcd iaislled and
REPLY JUDGE DoswoRTH
Ex-Judgc Bosworth replied TO this answer. The afi
davs. he said had contendcd that the railroads ma
npuacd by the defendant desirable corporations
for It TO lease and The Albany and Susaue-
hanna road was, among the Others spoken o! as de-
sirabe property Attached to aiidaviis, however
was an annual report which showed that the did
succeed we'll under tue defendant as under It's
former owners This document showed s3.ols, 600 as
tho gross expenses for tue year. while the receipts
5000 600 leaving s555,4o4 to be charged to
ana Hudson Canal Company. That corporation
no was defending and alluded to the quest onablc
character OF the plaintiff, indicated 10y the alldavs
ms TO his Indebtedness TO his tradesmcn There we're
200 900 shares oil stock, and OF these 100 only were
owned by the plaintiff, and they had been bought Tor
stakeholder had mace any complaint against the
management. The object sought by the plaintiff was
10 bear" the stock III the interest ol dishonest per-
sons and It had already been attained, that II HIS
Honor should deny the application at once would not
entirely repair the damage done.
Judge Bosworth Cnoate said, had been en-
ploycd much spnstcr with laced charms
employed n false iron-to deceive the spcca-
tors give mir responsibility TO tho action.
He claimed that Under the Revised statutes, the
speaker contcnded, was afflicted with mania Tor mar
kciing and inning coal, and advanced proof OF the
assertion the purchase Tor $s.00OOOO OF the New
York ana Canada Railroad, all the receipts from
which tor the last year amounted to sllsooo
with reference to The a1davits read by Mr.
Choatc, setting forth the nourishng con-
dition OF the defendant, the speaker sad that they
o no account, especially as they came from par
ties interested IN the company Why," he SAID, 'you
could get TWO or three adavits setting orth the I'M
mense value oil moonshne upon tue polar ccDerss-
that was worth so much per acre with reference 10
residents, something OF that sort provided
that they owned Stock
A LONG ARGUMENT
Mr.. Choaie reJoned IN an argument which lasted
nearly two hours He began by speaking of hltl-
erto nigh reputation o the company, and by the laws
oil 1870 the Court had no right whatever, under tho
existing circumstances 10 appoint a receiver OF the
defendant Defending the action OF The company in
spending 81, 900 IN erecting It's building in Cori-
landt street some I'VE he broke INTO rhyme
unconscously, and EXCHANGED
Wien iii the world bought real estate.
We bought ours. too.
Mr. Choate argued that the Court had right
TO appoint for the defendant than u had
appoint Tor Trinity church IL had never been
applied to for dollar due which It had not paid lis bona
Gde stockholders satisfied aud 1t perfectly
solvent Even affairs had not been satisfactorily
managed the Stockholders annual meeting woulI
IN May, and they could hen dcpose the officers
HIS Honor alter hearing brief argument from
Judge Bosworth. took the papers and reserved his
decision, remarkng at tho same timc that 1t was
grave question Ia his mind whether a man owning
such a trling share OF the capital stock could
legally into court and impcach the management OF
great corporation.
BULL-DOZING PRESIDENTIAL
ELECTOR.