New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-19
SIGNING WITHOUT READING.


HOW JUDGE DONOHUE GRANTED AN ORDEh.
THE DELAWARE AND HUDSON COAL COMPANY d.
REC1ED TO SHOW CAUSE WHY RECEIVER BE
NOT APRON UNDERSTANDING THE ORDER
CHARGES AGAINST TIE MANAGERS IN THE COM
PLANT.
Judge Donohue on Friday signed an order,
returnabe Feb. 20, the application OF H. f. bio"h'
attorney for Henry r. Anderson who claims 10 DC Il
stakeholder and bondhoder in the Delaware ana HUDSON
Canal Company, that the company show cause why I"
should not be placed IN the hands OF receiver. Inc
complaint was first sent to Judge Barrett hut as lie WIS
absent the document was submitted TO Judge Donohne'
who now states that he placed his signature upon inc
order without knowing what 1t was. On filua. eve"
ing Judge Donohue said TO TRIBUNE reporter n"t '
had no recollection of receiving an applicatloh i'll "n
the Delaware and Hudson Canal Company was in''i-
ested aud that he had not granted an order. IL WIS
ascertained, however. on Saturday morning 'i"' he
had granted the ORDER and that intended 10 serve
the papers during the day Mr. Brown finally sent inc
order back TO the court, where 1t was rescnded.
Judge Donohuc SAID that the matter occurred Ill inns
way: After Judge Barrett had gone ne was
sitting In the judges private room, when IN o'cer
brought in an order 10 show cause WIN
statement that it was mere order 10 sho"
cause in aid of a regular notice Of notion ana ater cA
aiming that there was no stay OF procecnss
without even looking at the head, he had sehc' i pe
cause it was only on face eight days notice. OF, ds
was told him, in aid Of an eight days notice lie
did not know the title of tine suit when the reporter Oh
TIE TRIBUNE applied to him on Friday last
The complaint OF Mr.. Anderson sets forth tha' inc
plaiutif is sockhoder in the company and an owner OF
first mortgage bonds. He alleges that the managers nave
wrongfuy leased the Albany and susquehan,a Kai:-
road and the Rensselaer, and Saratoga Rulfoad,
Guaranteeing per cent interest all bonds stock anu
1cb, Incurred i'll their cOnslrucloll-a oial VI
$33 100000 That the leased roads have been Unable 10
the last fiscal year tie actual cost OF lheSe Io'a ~
rentals ANA ntcpst ,7I32si and the roads armed
ahoyc operaiing exp nses only s1ll9,G-2, leaving u
burden of S623.GG2 yearly to be borne from 'h' ''
| The plantIff also alleges that the managers have
wIonguly expended several mi lions OF dollars upon me
a iGiisSG $iOoooioo Of the mortgage nSuoS Of
the Albany ana Sns9ncn"'hlm nnds af IS, NV
! York and Canada Railroad, and nave Wr"hgi ~ w.,
NcwIork and Canada Railroad. lhat die EloSs Ean
iups ol the lst-ramcd road for the last fiscal year were
tcelng the bonds ana PURCHASING ~ Stoek naSc Mi'o'
good cause assumed heavy burdens Tor when they can
never receive any adequate return. , - a.,
Tne plautf declares that the actual earnings on TN,
coal business and canal tolls and miscellaneous p"hH %
about S3.i52. 200, and deductns the rental,
aud interest, 1t appears tna' 1e I ,a ,rns Ss
Of LAST year are only 81 5Ji,OsO, with which to pay me
Interest on the companys own beaded de't. B1l 'h'
Tie defendants marketed during The last iiSca year
about 2i92,Gi4 tons OF coal, ana Wlth Inc uctiih5
|
during tie present 10 borrow money 10 pas interest
ON their bonded debt and the interest Guiiahtttu ~
fhcm An item appears IN the printed lllii htHcih'i
Of the dclendaus dated May g. 1876 as iulOwS MiSe,I-
lnurous assets 50 800 J2J 10, ami although the Officers
have been requested 10 explain this item, ncy nave neg
Irccd TO do 90 and the plaintiff alleges from lnornao
and hruc that said item OF To,3JO529 ID OI asst Is ~
! WORTHLESS and o. no market yainc Whatever
II il also al, thai the defendants have wr0nEfuN
invested several million dollars IA hob-N !dchd pa! Z
sfcckS that they ld SCly aud wIOnSinly cEI q "a
eD,ruitiuS in cua that the company has large lJat-
i debt and hupccssN 1nsOINtnI, ana considerable
/ al
| souud dividends have been lT.udulcntly declared
and pad on stock from the capni. Idt the com
nnatlon with other companies To obtain c%toitonatc
rates for coal made necessary the accumulation
| OF an immense quantity OF coal wLlch remains
/ on hand without market, causing great loss.
That although numerous and perssttnt inquiries nave
been made for statement OF the true condition Ol the
comp1uv no statements have been made y. such as
are non-cuIani tai ana evaslNe, ana only calculated 10
! miSIc I'd and deceive its stockholders.
The plaintiff therefore pIiIs tDdl the president III
rcctors and managers Of he company may DC required
| that they may be ordered To pay 10 ire
! corporation and lis creditors all sums "i
money and the value of all property of the company
which they may have acquired 10 themselves or iilN-
fTcd to OtncI which thCS nave lCckcsSy lOst,
sauandercl nisusedo wastedby the abuse Oi Their trusts
That all alterations of property made Uy the Officers con-
trary the provisions Of law, or foreign 10 hc ldNu
business and objects Ofthc cClpordOnb aside III cases
where the persons receiving such acldilon knew Inc
purposes which il made 10 II also asked ta'
flc company be compelled 10 make iul discovery o. It's
floating debt, stock, property &c, IN ACTON anu utLti
effects And finally mat receiver bt appointed
The atdaVits summons, ;ilnt nOilc' 81
motion in the case, will probably be made daring the
early part this week. either before Judge DOAUEue OF
some other Judge OF the supreme CourL