New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-05-17
WESTERN RAILWAY AGREEMENTS.

TRYING TO GET AN INJUNCTION AGAINST AN IOWA
SUIT DISSOLVED.
The suit of James Shields against Andres
d. Stone before Judge DOnohue yesterday on uo
ton TO dissolve injunction granted last september W
restrain the defendant from prosecuting an acoh III
Iowa Mr. Shields is the assignee OF ana represents
John Fallon In 1874 Falon aud Shields held or repre-
septed most of the creditors by mortgage or Otherwise
Of the Mississippi Valley and Western Railway Com
pany Falon owning S7O6 900 iof the mortgage bonds
FaIon and Stone came 10 an agreement TO nave the
road foreclosed and have reorganization. which they
expected control Falon's share was to be IA per
cent Stones So per The Stockholders OF the road
aferward acceded to their plans, and the road was
turned 10 them under the name OF A. b. STONE q
was sold April IA 1878. Various intermediate arrange
ments made some for the payment OF hostile cfeu
itors some for the inclusion creditors in the sche &C.
The validity OF some of FsllOns bonds was disputed,
and FalOn found that the payment f'his snare Oh se
expenses of proceeding would be onerous and MADE
an agreement with Stone sell bonds TO him TO meet
this demand on April IS Falon made further agree
with Stone. by which he was TO nave tIee ~, @
after the securities OF the new road were ready 70 re-
deem MS bonds BY paying stones advances
new company the ST. Louis, Keokuk and Northwestern
Railway Company was ORGANIZED ana SSne oah a
soon after morgaged for 100000 70 build an
nG for hsr S placed the
original securities the hands OF one Ees ln August
10 determine the rights all the parties The plaintiff
bereupOn brought this action TO restrain stone from
junction last September aud the motion yesterday was
to dissolve that Injunction.
The plaintiff claims that Falon much larger
owner debts the old company than Stone That
the agreement OF July 1874 was the guiding and con
trolling agreement and has been violated by stone;
that the agreement OF March, 1870 and April l3 1872
a MORTGAGE not affecting the main agreement;
that stone reorganzng the road took In interests
and new roads contemplated By the original agree
meat that he only paid out In all about 100000 and
has been repaid $165,O00 cash and 100000 through
the first mortgage for purposes not contemplated i'll tne
July agreement that he has never entitled himself 10
demand the repay from FallOn since ne has tied up
the securities, and they not yet ready TO he dev-
cred and that the Iowa suit was brought when
Stone knew this suit about to be brought with Inc
object OF snoheIing the claims OF the paintn In the
various claims of others, OF them In
stones interest. On the other hand, the defendant
claims after Faon had repeatedly declared his
inability carry the agreement Of July 1874, the
agreement of March, 1875 was made entire sub
siute It that FaOn has not TO this day compiled
with the terms OF the agreement OF July 1915 that
Notwithstanding his defaults the defendant Is still will
ing give him bis fair share OF the securities OF the
company that what that share is be better set
tied in tho suit where ali interested are before the
Court the Court obtained the earlier Jurisdiction
Judge DOnOhue reserved his decision. Edward Patter
appeared for the plaintiff; F. +. Marbury for the
del