The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-06
THE ERIE WAR.

MOTION TO SET ASIDE THE JUDGMENT OBJ
TANNED IN THE FORECLOSURE SUIT or THE
FARMERS LOAN AND Trust coMPANY-A
TROUBLESOME s'INFANr."
Another skirmish In the great Eric Railway war
took place yesterday morning before Judge Daniels
in supreme Court, Part l. Tho occasion was motion
10 SET ASIDE the judgment entered on tho It'll OF Mo-
vemoer last Ia the foreclosure SUIT OF tho Farmers
Loan aud Trust Company, acting rs trustee OF the
railroad. Prior 10 thar Mr. McHenry aud two other
bondholdes commenced suit foreclose part OF the
property Of the road on their own account. IL was
this suit, begun In Monroe county. IN which
defendants moved stay OF proceedings last
Friday, before Judge Brady who reserved his de-
cison. The motion heard yesterday by Judge Daniels
much more far reaching in its purposes tuan the
other notion as II granted, tho foreclosure could
he made aud tho reorganization OF the railroad would
be prevented. William Zigge an ''inianr' in law, Is
judgment creditor OF the Ere, Railway to the
amount OF $ljl22 SO. His guardian. Charles b. Ger
maine, prays, through his attorneys, that the fore
closure sale DO aside enable him collect his
judgment
Mr.. Elihu Root began tho argument 10 set aside the
judgment. stating that tho grounds Tor his motion
were several irregularities mentioned IN affidavit Of
A. 7. Laning, counsel for Gcrmane. which lie would
Mr. Redhed objected that The irresu arties had
tho part OF the Eric Railway, Mr. Redaed,g" 81
make this preliminary motion, SAID the latter, 'and
II don't make any difference VINO appear Tor. -
Eyes, SIR II does" said Judge Green enpuaticay.
M notice was taken oil Inc objection ana MIR. Root
proceeded 10 read the AFFIDAVIT IL set forth that
William Zaggel obtained judgment on the 18th OF
September ls7o Tor sl5 H. %, and goes to detail
conversation held with J. clerk of attorneys Tor
plaintiffs, from winch MI Laning supposed that
reference IN the case would be taken. Nj. Laning
further that lie considered the judgment en-.
Z d ca
was had 10 compute tho amount due upon the
gage Tor tho foreclosure Of which the action was
brought. No references was mud 10 lake proof Of tho
facts stated III tue complaint ana proof of them
had been gwen The decree directed sale OF large
amounts O securities stated TO DO held by receiver
subject TO The lien Of the said mortgage, but there
Was no proof that th"y really were subject 10 that
lien.
COMPLICATED nEcEvERsnIps
The receiver Tor the Farmers Loan and Trust Com
pany was also receiver Tor tho people anc recover
several other modes, yet there was dscrminat
as To what properties lie was TO SELL The in
oludea everything The decree iurlher irregular
because ~ directed that the RECEIVERS certificates,
amounting TO several millions should become iiei
upon the property PRIOR To The 4s.ortgagc. These
certificates issued raise money Tor the pay
meut OF tire general Indebtedness OF tho company, 10
which the said Infants judgment prior. The
Judgment was further irregular because il charged as
lien upon tho road the unpaid interest coupons,
which should have been paid Out OF the moneys which
came into tho hands OF the receiver Tho plaintiffs
were not entitled 10 judgment because al the timo
action was commenced no cause OF action had
crucd to Farmers Trust Com pany against
the Erle Railway Company.
The action, dcpOnent claimed, was brought about
pursuant 10 an arrangement between receiver
(whO was also President vi the Erie Railway Company
anu the TURNER'S Loan and Trust Company the
app utment OF himself as receiver the extinction OF
the rights OF the Eric Railway Company the mort
gayeu property and tho transfer OF tho property
new corporation, 10 DO formed for that purpose, I'm.
dor the direction aud control oil the receiver us
President oil the Erie Railway COMPANY that com
pany consented TO ana by every means III power
furlhered anu aided IN the rendering OF the decree
After this al tavlt several Others had been read
Mr 4 rat pI Inn nat m I'm Ip.,,
and IrustCompany. He lrst read the affidavit HIS
clerk, giving different version u his conversation
win Mr. Lanins from that recorded IN the iatter's
affidavit. Mr.. Turner next road his affidavit,
IN winch he denied that the mortgage sale cover
any property not ncluued IN the mortgage The fore
closure oil Their property would not include anything
covered by Ziggei's judgment. No exception had boen
been entered involving very large interests, which
would be- greatly prejuGced by decay in
OF the JUDGMENT MI Turner Charged that the notion
was Il plan vi Mr. McHcnry 10 obtain control OF the
Erie Railway ana to prevent the collection 0t certain
sums due from MN IN London. The only properly IN
Niagara county WAS easchoid Interest IN the Suspen
sion Briugc ANA twenty-five miles OF railroad, both
properties prior date the Of the plaintiff
The point OF his argument was that Zagges judgment
would not be lncriered with by foreclosure suit
IL covered property which tho latter Did touch
said that every contract made by, the Erie Railway
IRON the time OF It's Organization present day
would pass into hs hands of The receiver by the
OF the Decree Then Il there were contracts which
the purchasers saw III u reject tho could
assign them 10 the Erie Railway, and that Is what
would DC lett Tor his cneuts to collect from There
had Deen millions OF dollars expended by Mr. Jewcit
which tho Judgment creditors entilied to have
creuted on the mortgage. Mr.. Nandcrp0el next ar
guea thas they mai Eigh to sell
property OF the company winch would otherwise be
liable Tor tho purposes OF paying of the mortgage
their ccuts AZ THIS poiut the hearing oil he motion
was ADJOURNED until Tuesday next AT hnpast eleven