The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-05-11
THE COURTS.
Injunction Suit Against the Wabash
Railway Company.
PHASES OF RAILROAD CONSOLIDATION.
A Suit Involving the SUM or
SIT, 100000.

An i'm portant suit has been brought BY Samuel Bar
ton against the Wabash Railway Company. The de-
tails OF the recited in Mr.. Barton's complains
present the usual voluminousness OF all pleadings IN
ali railway Htigatons. II states IN the outset that the
Toledo, Wabash ana Western Railway Company has
been consolidated from various other companies each
bringing in their respective mortgages that OF tho
Great Western Railroad corporation alone amount
ing 70 s25Oo,000. He that he owned
bonds OF tho original Great Western and
Wabash and Great Western companies. The
Toledo Wabash and Western Railroad Company
Issued equipment bonds for about 100000 ana con-
soidated bonds for $1,000 to take up the old
mortgage and the equipment bonds, setting apart
SIS 900 for that special purpose, OF which oonos
there are still outstanding about $1,000, 900. Subse.
quenty this road ISSUED 900 o00 gold bond and In
May 1875 Mr. Barton further states the company
utterly deiaued in pay mont OF the interest," and pro-
cssdngs for foreclosure were begun and carried TO
decree on the gold bonds. Following the decree an
association Of bond and stock holders was formed
and An effort made 70 have the decree vacated on
Tho ground that the mortgage was fraudulent and
void. A compromise effected by which 81, coo, QUO
vas accepted by holders OF the gold bond and the
company reorganxed, the old stockholders being let
In on payment Of $40 . share, on i've monthly pay
ments inc last pay mont to DO maze on January 10.
1877 when they 10 become new stockholders all
VINO did subscribe before November 3, 1875, to be
considered declining and their share 10 be dstri-
butsd pro rata among those coming IN. TO meet cor
txiu claims on the road y new mortgage called the
cline mortgage" made for 81, 0000o to be paid
old bonahoiders being induced to reiund their cou-
pons and deter payment Mr.. Barton says those re-
ius,na 70 do 50 Determined 10 stand on their legal
rights, such parties holding 81, 100000 OF the old
bonds and $500 900 OF the equipment bonds. de
asks the appointment OF receiver Of The road for the
purpose OF projecting Ihe interests OF tho old bond
holders and toreclosing II necessary that The hold
oil the equipment bonds be declared TO have the
same the consolidated bondnolders, and that
ali payments OF interests to any except The holders
or the frst mortgage bonds DO enJoined as impair
ing the security Judge Donohue granted u tempo
rary injunction, With AN order show why 1t
should not be continued during the pendency OF the
action, such order being returnaoe on the latn INST
A SUIT emDodying some VI the Same statements as
those contained IN Mr.. Barton's complaint has been
brought by Henry Thornton against tne Wabash Rail-
way Company and Thatcher ii. Adams and others
In complaint he says that the Toledo Wabash ana
Western Railway Company mad s. sou, 900 and about
SIG 600 COO He then details the issuing OF the golo
bond mentioned IN Mr. Barton's complaint,
win other facts stated by Mr. Barton The Company,
he charges Is hopelessiy insovent and ne then pro-
ceeds 10 give an extensive array OF hgures
In corroDorat0n oil tbs statement de then ADDS
that there Is nothing IN the past history OF the
pany present condition 10 give nope that will
pay It's bonds. He states further that he owns
200 shares OF tho old stock, says no lives IN Buffalo,
had nothing 70 do with the plan OF reorganizaton
in December, 1885, he endered his 600, which
refused, being $40 on each share OF stock that
on January To- 1867, the trustees made conveyance
70 the company, and he now sues Tor 100000
damage& The case arguou yesterday on u de-
murrer, Deforo Judge van bEuuI mr. Souu H. Uos
Passos appears for the plaintiff ana Thatcher N.
Adams for the company Judge Van Brunt took the
papers, reservtng his decision
SEVENTEEN MILLION DOLLAR SUIT.
An argument was commenced yesterday In the
United states Circuit Court before Judge Blatcniord
. demurrer TO a complaint in equity OF John Len
snrig Va. the Land Grant Railway Trust Company or
Missouri Kansas and Texas Railway Company. Mr.
b. 4. Butter, Mr.. Charles Albright ana Mr.. Chauncey
Bhaner appeared Tor the compliments and Mr.
Ruggles, Of Star Rugges, for tho defendants. who
arc named in the demurrer as William II. Guion
Joseph Seiigman. james Seligman, William
scligman, Jesse Seligman and David Crawford
JE Tho complainant alleges that be, with Others had
filth interest the profits OF the above road coLse
Quent upon contract entered into with him by the
defendants Tor the building Of the road and that the
latter, Tor the purpose OF deranding him OF these
profits have couspired to cancel the contract. Ho
przys his bill tnat the defendants may be made TO
discover associates who officers o the COM
pauy, and that they disclose their interest therein
The bill also propounds fourteen interrogatores TO the
defendants, 20 which the com lainant demands an
answer and ne also prays Tor an Injunction and re-
cover. 1he amount involved is about 7.0U0, 00Q
The argument will continue Tor several days.