The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-04-03

trustee under tho deed OF trust. Sub.
men, IN The same cour, on demurrer before Judge
Bruce. then holding Circuit, and that Judge has re-
Gently rendered opinion. tho substance Of which has
already appeared 10 tho HERALD TO the effect that the
decree OF the Court of Chanccry OF tho stale or Ala
bama as to Mr.. Kctchum; that tho latter was
under no obligation 10 pay any regard 10 H. and had
not becn guilty ot laches IN seeking 20 establish q
rights as trustee ~ opposition hereto that mancsy
this decree tho basis and source Of the alleged
rights trustees OF Duncan and Elliott, not any acts
or admissions OF Mr. ketchum Tor he then living
IN the state Of New York and without the opportunity
right OF intercourse with the parcs that he most
that could be said was that tho silence OF Mr. Ketchun
may have increased the confidence OF Duncan and
Elliott IN their POSITION but that mere silence undes
such circumstances could operate divest title "a
trust estate Ia. TO his mind un,cnablc.
MATCHING AGREEMENT
In october, 1915. while the foregoing suits were
pending a memorandum OF agreement aud transfer
purportng TO TO an agreement oct"esn snc company
aud rs creditors who might assent thereto, the ut.
mate object OF which 10 stop the foreclosure suit
by the making VI new nrst mortgage To take tha
place OF the existing nrst aud second mortgages COW
cring the whole indebtedness Of the road, the bonds
secured thereby to he payable gold before
tho ist OF December 1877 was drawn up and William
II. Hays, OF the CITY OF New York William :. Picrson.
OF Windsor In the state OF Con ncctcut and r. Has
kins Du Puy, oi Philadelphia, we're named therein az
In trust agents and managers OF tho par,a
thereto who are creditors OF tho company suostan-
TALLY this memorandum OF agreement and transient
provided that the first mortgage bondhoders asserting
thereto should exchange every $1,000 bond held
by them Tor new 1rst mortgage bond oP
$40. aad accept a subordinate bond Tor tho
balance. Hays and his associates claim
this "mcmorantum," and that under It's provisiona
he and his associates authorized for them IN
nuincd and undonc ali ina, has boon donc the fore
closure suit brought by Duncan and Elliott, or have
delayed the dccrcc OF foreclosure and "colocton OF
the amounts secured by the mortgage"
DECLARATION
Immediately upon the rendition OF Judge Bruce's
decision ~ favor Of Mr. kotchum diversity OF opin,
ion between Hays ana his associates and Mr. Ketchum
arose Ms 10 the effect OF that decision, Mr. kcchum
Insisting that IL made him sole trustee and his oppo.
u
Woods previous decision the opposite way Was ~
force On these points tho respective parties declared
their views IN correspondence AS iollows--
rng DIN
Nrw yonx, Fob. 49, 1877
We take occasion inform and notify request
William S sro and Ae BE- w ass u m.s
OF mortgage claim, against the Mobile aud ohie
ss"%ooo, aeudns arst mo,sass claims andei The deco
sna Ss s paa sn"Ta m
tesstea Y mainta"'ns ssd claim. the amoaa. 81 mp
course lately l.sen aud the litigation lately ia.ued ~
son aud hold you personally rssponsine lor =. injury
directly or indirectly and request sos 20 assi
prssen. receiver. either them. i You hays
,s's' Ne sssSas Is
for not t. delay the proceeding. by anew suit and
suits instituted by YOU to do 80 without prriadcs TO proof
already taken IN the suit. previously besun and 70 assoc
n with an opportunity u appear in tho suits and
dsmsnd tia. YOU prcp"rsa to cncrec ara"s
you personally views requests and demands BY
with. Yours, truly. ". H. HAYS.
Y y. i !: III Isq 81 rvy.
ALEXANDER DUNCAN.
LEAVING IT COURTS
GrsrIrxrS- communication Of this date received
pciy Of ~ u.ss saees decision In eons.sa'n Pm" mo
ohio Railroad Company e, Under the decisions Of the
prsms uar 2. me United STATES popois :" as. undo, ,hs
complaint against Tue aa rc.t !. tho
made but In myself harmless
from ycur holding me ps'GnSnly rs.pgm;bo avail the
!. sess. q esass,ea. jarisas.Iea. % shall 70,
present receivers or ci.ner Of them. My rsasons nr
the cnsoaa"sp Of tie property Is The prsprr tribunal TO
determine that question rs VOL rs every other on which
letter say that desire 10 spcdtc all proceed
a acquire perfect s @e any asss
ss Which Sss ns %
the United states Court % A TO your threats To
%"nds Sy proper proceeding are promptly
nave !" s's yoa 70 az pa NAV wsr:
como in coars Of equity and ask their Instruction. A.
trustee propose 10 do precisely what the sitting IL
equity '' "''"e' me . No. 'l NORRIS s'S KErcnuM
TIT. COURT THE FINAL ARBIrgR.
Other letters followed from Hays aud his associates,
Bruces decision went 10 tho extent Of declaring Mr.
keichumio DC sole surviving trustee; ALSO ofer u
Mr. Kctchum OF commissions II he VIII come intot hcil
SUM- In pursuance oi their intention TO force their
views judicaly, expressed in their letter, Hays and
his associates commenced this SUIT pending tho
Court OF Common Pleas IN THIS city. In their com plant
they forth large all tho proceedings and docu-
from which the foregoing history Of the
derived except tho decision OF Judge bruce of
Mr.. Kctchum They char 20 that the latter Is prose.
cutting his suit IRON personal motives that hts acts
delay the foreclosure suit OF Duncan aud Elliott, and
consequently delay payment OF the claims represented
by the plaintiffs; tina, Kcchuras place OF business IL
Ia Now York and his residence In Connecticut that he
is OF advanced ago ana physically incapable OF
cutting the duiies oil trustee; that Tor many years no
years has failed to perform tho duties of
trustee that he Is impeachng tho title OF Alexander
Duncan TO claim OF $4,000 against tue company,
without giving him an opportunity To defend aud that
he b ~ omitted 10 make plaintiffs IN this suit hts
plaintiffs In his SUIT They conclude by asking tho
Court to declare that ho has resigned and abandoned
his rustceshp and that his place Is vacant and that
he be restrained from prosecuting his present
any foreclosure IL the Court cannot ind that
Mr. kctcnam has resigned then plaintiffs want II To
find that he has violated his duty and that ground
put hun out They want also 100000 personal dam
ages against him. 10 this complaint a demurrer
intcrposcd on behalf Of tho defendant on the ground
that the Court of Common Pleas, In which the suit
brought. has no Jursdction and that plaintiffs have
no right to sue.
"Wednesday OF this month Tho whole amount OF tna
Indebtedness Of the corporation involved IN the
litigation Is estimated at about $4,000, 600