The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-05

Farmers Loan sad Tfust Company right through tn q
matter and see now they came out OF the business.
the Court Tor being false to their duties He held that
Judge Pratt WAS not at all responsible Tor the way no
AFFAIR was managed Mr. Jewett nad trAnsierreo 70
himself $40 100000 worth OF securities Tor the new
Reconstruction committee. The interest on the nrss
mortgage bonds not TO DO collected until the re-
construction scheme bad been perfected. M Jewett
tEoue hi that II he could please tho English bondbod-
they would not him out aud would not examine
into mis- transactions The Farmers Loan apd Trust
Company began suit TO foreelose on the FIRST mort
gage. and kept 10 alive while Mr.. Jewett manipulated
the secu rites and suddenly ucd H. and theH
took judgment on the second consolidated morigare
declaring that some millions o! dollars should become
lien prior to the nrst mortgage No respect was dus
10 the parties who could cover transactions OF THU
KIND. Mr.. Raiston had allowed himself TO DO used ~
Mr.. JewetL Tho suit OF Mr.. McHsnry had been com
property TO- DO foreclosed upon Was there. The
ecuant trustees had tried 10 eiJon the lawyers VINO
sn.nSnr that 4 1r Mcsnry should be ioresd 10 ens:
rscy other lawyers not SO well posted they would
have u better chance Of winning tho SUIT recess "
thirty minutes was here taken.
RECEIVER JEwETr DEPENDED.
Alter recess Mr. Mcfarland defended Mr. Jewctt In
ten minutes speech, and Mr. Dorman d. Eaton con.
unued IN the same strain, saying that his Honof
should not allow his judgment To De influenced by the
allegations of the other sdo TO the receivers
duct Judge Brady replied that sucn adInonitivns
were entirey unnecessary and that 1t ne found the
allegations hao that tendency he would give Mr.
Jewctt an opportunity TO vindlcato himself
Ex-Judge ComstocI next began 10 speak IN favor OF
the receiver. The aggregate OF the bonded liens upon
James Mcienry aud Two other bondholders holding
sel 900 worth OF bonds, had begun suit IN Monroe
county tor the removal OF the trustee and tho fore
closure the mortgage. The acts OF the receiver
contendcd were The acts OF the Court Itself The
present suit and the suit IN Monroe county could NOT
40 on together. Ono would have 10 be discontinued.
II remained 10 be sccn which covered the broader
grounds The question was not the allegations or
dcniais OF tho other SIDE but should the Issue be
triedY II the issues were entirely common 10 both
suits then admitted that IN Monroe county should
DO first. Every dollar the receiver mad ac-
counted Tor with scrupulous accuracy He had heard
something about meetings IN London. IL was enough
for Sir. Mccnry That hc was Interested IN the ATTAIN
TIC and Great Western and the o. y. and l. Nv natcvcr
that Ight meano get up meetings here. Tho holders
OF 49, 900 600 OF the SIG 900 900 had been satisfied
with the trustee II was not true that hr. Mcttcnry
represented in the arrangements made by tho
trustee. He well all The other bond.
holders was represented by the trustee The trus-
toe receiver and the great majority OF tho
stock and uopd holders were content with Tho
arrangement Mr.. McIiensy representing only ono
hundred ana thirty thrd OF tho bonds, alone dis
approved OF II. The trustee asked Tor the appoint
mcnt of receiver aud Mr. Jewe.t was appointed, he
beng the receiver III suit brought by the people,
All parties were there In the person oil tae trustee.
The other side ipveighed against the receiver, and
wanted the trustee rejected. leaving the receiver IN
possession OF his Office The suit brought by tho truss
eo represented broader Interests and included those
Of Mr. McHenry, and therefore should be
tried first. II Mr. McHcnry wished 10 come
In with them he could do so. Otherwise
after the Mchenry suit was decided othor
bondhoIders could come up and begin suits anu mo
litigation would be nab.o II Mr. McHenry was
to win lose the suit that ISSUE would be included
In the SUIT Of the receiver Tho plan OF rcorRanza-
ton consisted in tho present bondnoldors buying IN
the property on the foreclosure and reorganiznx
the company. There was no inlamy IN that. II Dir.
McHcnry wished to accept the arrangement he might
come with them. or. II he chose to stay out, no
might bid for the property against tho other bond
holders and II he bid high enough ho could take tho
property ana pay both thcm anu himself otherwise
they would take the properly and pay both him and