The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-16
THE COURTS.
The Second Mortgage Bonds of the At
lantic and Gulf Railroad Company.
SUIT AGAINST CONGRESSMAN WILLIS
A Family ACKNOWLEDGEMENTS
tan LazzarOni.

The Supreme Court. General Term. was occupied
nearly all day yesterday listening to an argument on
appeal growing out OF tho suit brought by James
PhoIan, Eugene Kelly, J. Howard Forte, Adam W..
Spies, Morris X. Josup, John Crfar, Charles Bard,
Edward X. Goodwin, John Kimball and J. N Coch-
against the Atlantic and Gull Railroad Company
and the Union Trust Company OF New York Almost
universally suits against railroad CORPORATIONS are
very complicated In their character, but tho
litigation connected with the present suit seems
10 involve points unusually complex and cificut OF
clement. The road was organized under the
laws OF Georgia, and for somo time before
the commencement OF tho action was IN the custody
Of Samuel A. Strong ana John screven, appointed as
receivers by tho United States Circuit Court OF that
State on a bill filed by Morris X. Jesup as trustee.
The PLAINTIFF allege IN their complaint that they
the owners OF $500 OF coupon notes Of the railroad
company issued in April, 1872 bearing ton per cent
Interest and lhrco per cent additional premium
In the loan was paid before maturity.
There was deposited with the Union Trust
Company security for tho payment OF such coupon
ST. 900 900 Of tho second mortgage bonds OF tho
railroad company that tho company tailed TO pay tho
coupon notes; that the trust company thereupon
required to deliver to the holder OF each coupon note
mortgage bonds for twice It's amount; and that the
trust company refused to comply with demands.
Upon this OF facts the Court was ked by tho
plaintiffs to decree for the sale OF the mortgage
bonds and judgment for any deficiency on SUCH sale
against tho railroad company. Alter u judgment Of
foreclosure ana sale had been obtained Isaac and
himon Bornheimer hlcd petition asking that the
decree be vacated and that they be made party
defendants to the suit. They alege IN their
petition that they 937 shares, OF the par value OF
$130 0O0 OF the special guaranteed STOCK and common
STOCK OF tho railroad company; that no time nor OPP
portunty Tor redemption contained IN the decree;
that after u pretended notice OF sale, out OF the
ST. OF such bonds referred to 100000 thereof
were Knocked down to James Phelan and 100000 OF
judgment Of deficiency entered for
$456 125, and that they learned Of these pro-
Ceediugs only through memorandum oil the
decisions by tho Court They state 1urtner, on nOr
ings obtain the 81, 600 00u mortgage bonds at
insignificant price ana then ioreclosc against tho rail-
company and cut of the rights oil creditors and
stockholders. Upon this petition Judge Donohue
granted an order TO show Cause why the judgment
should not DO vacated aud the sale OF tho
mortgage bonds set aside The plaintiffs in
tho original allcge that the proceed
tugs taken by them had no other purpose
than 10 ntorce by tho regular and orderly course OF
legal procedure applicable to such the rights
granted and secured To them IN tho premises They
state further that tho action OF tho petitioners Is not
IN good faith, but merely embarrass and delay the
plaintiffs reinforcement OF thor legal rights undor
their contract with tho railroad company ana TO OBJ
obstruction IN the present condition and Sit uatiOn Of
the property will operate TO tho Serious and irro
parable INJURY 10 the plaintiffs. The motion
to open judgment and SET aside the sale
IRON this ORDER tho argument yeterday being upon
SUCH appeal. The argument was almost wholly tech
meal beng clamed side that II was clearly
Illegal aud erroneous and should be set aside, and
the other that tho order purposcly granted and
should remain IN force. AT the close oi tho argument
the Court took The papers roserving It's decision.