The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-03-22

defendant
SUIT by the Farmers Loan aud Trust Company Tor
leave to answer, Judge Dan els says the infant
made de endant IN THIS action as udgment creditor
OF the mortgagor, anu the guhrd,a AN ad Item APP
pointed 10 project his interests, but he had neither
knowledge nor notice OF The appointment uniil alter
1ual judgment had been rece,ved Since then he has
been chargeable with no want of diligence IN max
ing the application Tor leave 10 answer, and on
the papers there would ordinarily no good
Tor denying the application The party In interest
infant and II IS the duly of the Court to TO II
that ne snail not suier in his suit py any nattention
the part oil Its oficers. HIS judgment has become
lien upon the real estate OF the Erie Company In
Niagara county. Whether the mortgages, or either
OF them held by tie plaintiff the property oil
tho company becomes u lien upon the same, Or were
prior III point OF rgnt, the counsel opposing the mo-
ton appeared unwilling clearly TO admit and that
was more especially the TO the effect upon It
OF the judgment IN the action. THIS being SO. II
would seem 10 be most consonant TO the contamination
oil any eilectu foreclosure that the point OF priority
should he determined before sale OF property. IL
bad been proposed by way OF reply that the Tore
closure Judgments be so lar amenaed as not TO preu
dice the rights OF this niant 10 enforce his judgment
tln's mortgage. In conclusion the Judge saws the
default has been satisfactorily accounted Tor, aud tho
guardian ad Item should have liberty 10 serve an
answer IN the Case unless the proceedings shall within
ten days be SO Amended as to strike out the nian's
name party 10 the actou. IL that be done then
the motion might well be denied
FOREIGN BoNDHoLDERs.
Albert De BeIZ, Moritz SEWN Borcharu and Jules
Levita seek TO be made parties foreclosure
Tor the purpose OF presenting charges against the re-
cever and MS accounts, aud TO secure the examina
ton of such accounts The are ers
and they own $780, QUO worth vi second CONSOLE
dated mortgage bVuds. Judge Daniels, IN deciding
The matter, says that as the evidence now
appears there seems to be reasons Tor Dsovng that
the plan adopted for the OF the mortgage properly
ana reorganization OF the company has, toa certain
extent at least been devised rather Tor those moro
Interested III tner own protection than the interest
other persons. Each owner oil bonds Judge
Daneis mas the right To cxcrclse his own judg-
ment as TO VIVA, he thinks best for himself III suen
Case as THIS aud II The CONVICTIONS VI the
minority snoud materially dlIer from those OF The
majority hs TO what they mink most advisable or cx-
pedept, should not DC made reason Tor depriving
them oi their just proportion oil tue benefits ul.i-
mately ~ De secured from the success OF The plan
deemed most feasible by the majority. IN no view
which DC taken oil The case, as ii has been pre-
senteu behalf o the petitioners, would The Court
be Justinod IN denying their prayer, ana II their
charges are not we'll louuded II Is due 10
the plaintiff as u trustee, the receiver
subjected to similar Obligations, and to the IN. jory
who favor the success OF their present plan that they
should be relieved from the aspersions which these
charges emDody. ne Court would not be just TO
itself II 1t should deny the opportunity Claimed Tor
the proposed INVESTIGATION AS Dondnoders, these
persons are enLilled to know what Charges are TO
made against the property encountered tor
their security, ana, uudcr the circumstances.
. To became aaa 0A r parties oT sho action
enable them by proper exceptions, Investigations
ailege to have been improperly included IN the ac-
counts and the judgment Judge Daniels grants the
prayer IN the petition TO be made parties ana 10 20
on ana investigate subject 10 the petitioners proving
that they owners OF the bopds they they are
possessed OF, that statement being in dispute
EXAMINING THE KECEyER's BoOks.
In the mater OF the p.ttlon VI Isaac 5. Fowler,
stakeholder, VINO applied for leave 10 examine the
books contracts aud acc Junts OF tho recover Judge
Brady grants the notion but must be Outlined, he
says 10 the books, accounts aud papers in the Office
OF the company IN tins DISTRICT and II must be con-
fined to such times will not Interfere with the bus
OF tho corpoi alton. The object OF the restric-
uon, he says, is 10 prevent any undue importantly,
and the receiver Is not 10 be subjected to purely n
gu sitve fishing expeditions, either in single lle
or by multitude Of bonanoders or stockholders"
Mr.. S. L. M. BARLOW ON THE SITUATION
THE PROBABLE EFFECT OF A REoRGAN1zA-
TON OF THE RoAD-UNANIMIrY OF THE
BoNDHoLDERs.
Mr.. s L. n. Barlow requested last night to
give his views rs to the present situation OF the Eric
Railway Company and the effect upon its proposed
reorganization in the supreme Court yesterday. He
said: -
The decisions of judges Daniels aud BraIy are on
the whole entirely satisfactory. The only points of
conseq uence to the Of tho Erie property
that the reorganization scheme should be completed
speedily as possible by the sale OF the road.
This neoessary-Frst, because the present
mode OF conducting As business through
ceiver is very awkward and unpleasant
one, the management OF such institution ought
to DO vested in the owncrs-the ckholders--to-
gether with Its creditors-the bondholders. Second,
the necessary provements upon the line OF
the Erie Railway, 10 enable It to compete for
tho general business OF the country cannot
be perfected until the large fund which
has been subscribed by the stockholders
OF the company undor the reorgan cation plan OF Sir
Edward Watkn can be applied to those purposes
The incidental questions which have been raised by
Mr.. McHenry and his associates we consider alto
gother unmportant in whatever aspect they
placed except IN far as tuey sought 10
other delay and another postponement OF the sale Of
the road.
UNANMITr OF THE STOCKHOLDERS.
With degree OF unaninity by no means usual all
the interested in this property and the
scheme OF reorganization, amounting to nearly
S45 O0 have asscnted to the scheme with the
ccpton OF less than 81, 300 600, while moro than
hahn all believe about SAG 900, 900 OF the whole
capital stock-have likewise asscnted 70 the scheme
and have already paid in an assessment OF IS a
share upon tho common stock TO DO used land for
tho necessary improvements OF tho road and It's taci
ties Tor BUSINESS. Perhaps never boiore In the
history OF such reorganization has there been
such complete assent on the part of
holders SO much in advance Of the necessary
time before asssnIing in this case. Bat the delay
, waSn as uays & v'e sa,e
coupled with the assertion mado by the McHenry
interest that that was the hrst OF u series OF
pOstponemcnts, which would In tho end wear out
tho committee and destroy its organization. gave
to UGH annoyance. In the first place the actua
OF that posiponement TO the holders OF this prop
erty was probably Of $780, 000 TO say moth
ing OF the vast amount that has since been expended
In opposing the muufarious law suits, most
OF which have been laid in the courts
OF this State. In the next place the
improvements which are so vital the road and 10
all parties having real interest IN its success
delay ed long that II not speedily commenced 1t
will be practical posiponement OF year, ana in the
meantime interest upon the large amount OF
money paid by tho stock holders toward these
improvements Is In u great degree wasted or osI
Rumors freely circulated III Lon,ton 1--WE days
before this postponemcnt was actually known that
n postponement would be granted by our courts;
and, strangely enough, when this rumor was
confirmed by the actual decision OF the Court,
postponing the sale, the same parties in London
charged upon sir Edward Watkins committee aud
upon the counsel OF New York colluslve attempt TO
conceI the decision from the public Tor sinister pur
poses, when, In point OF fact the decision CON-
muncated to London by the counsel of
the organization hall an hour after II was
first known TO them by the Court
This naturally created great dislrust and
Dxiety and tor the past sixty days the malls have
been led with inquiries as 10 whether II was posi-
Bile for the nominal holder Of few thousand dollars
OF these bonds TO exert either through lawsuits or
NH. oh al his amin liv