New-York tribune., 1878-05-11
RAILROAD LITIGATION.

ANOTHER INJUNCTION AGAINST WABASH
4 SUIT BROUGHT IL THIS CITY BG SAMUEL BARTON
-JUDUE DONOHUE GRANTS 4 TEMPORARY IN
JUNCTION.
Samuel Barton, by his attorneys, Matthews,
Foley, Hyatt * RaPalio, has brought suit against
the Wabash Railway Company, on behalf Of himself aud
other bondaoders similarly situated, for rcceiYerWth
q view to foreclosures for an injunction restraining the
company until rcceivers appointed, from masking any
payment Whatever from earnings except FOR the inter
est ON the arst mortgage bonds for declaration that
the equipment bonds placed equality with the
consolidated mortgage bonds, and the pilOrtes OF tue
mortgages be Inarshalod. and for temporary receiver
and temporary injunction pending the suit.
The complaint forth the history Of the reorSaniza-
ton Of the Toledo. Wabash and Western Railway Com
pany out OF which the Wabash Railway Company arose
and the way in which the former company Was formed
by the consolidation II other roads. One Of these con
.odatcd roads the Great Western Railroad which,
in sG5 mUrtgagcd is road FOR S2JOoOO The plalnH
saws he owas bonds under this mort Tho Toedo'W Wa
bash and Westerf Railway Company absorbed thIs c.In
pauy nut took it, property subject 10 It's mortgages The
panfi say. hc also owns second mortgage bonds OF the
NaHa- Do aud Western Railway COMPANY, WLioh wa, also
absorbed by the Toledo. Wabash and Western Railway
C,uptuy. The consolidated company issued rODO,uoO
cGuis,rt bonds, aud 1867 made new mort gage Tor
III uoo g0O cYy,I.u al tDc road aud intended mainly
fo H., tinted Tor The old bonds and the equipment
bonds for which Sl3.JOn.OOO wa, rc-erycd. About
gI0G Gsuof The old houG- were exchanged INTO these
c.r.' .Ii4.d n.ort-s,c bonds aud There are
standing ~ tAa, Issue, So 1000 hr c4'sl2 tidt 'Is
equipment bonds are ,Euurd 10 the same nights az j
'cy mad been actually exchanged Tor cohs"ha"''a
bonds.
st Louis Railroad, ana the plnui ci'iIs zoe rout"I-
dcd NOR rtre attached to II tn Co bc sinking
fund of 100000 ycir 10 May 1873 The company made
entire default a., interest aud has moi ohc" hrpt s
slnkuS mud. Iu 1870 the road va i0r.r os u1ici
still recent WUrg gaze, and m January le'', the
trusico, who bad bought 10 ihr road conveyed 1t To- me
present company. The complaint t-cn states the OF II,
aud ui tLc scey mortgage, aud tue present con
dGpu of the bonded ludrnednc-s ot ti, Iosn aGn Us
iucomc, substantially as given Ia last Mondays IkiB-
USE. -. - l..
hopecs.y n-olyeut and shows that the rights Oi thc
bond nold.s under the older mortgages who have not
acccdrd TO the reconstruction scheme, WI oe geaty
Impaired by the pd!ueht "I Ih,,c junior S.ii,9' ,'
That unjust preferences gwen by paying certain cpu-
pons those bIndhOlders who nave 1c,edei to he re-
construction scheme ir say- ~ Is or'IfAne 10 ht'P e
property together and therefore 20 fuTcclu7" ulef %
cousuudlcd mortgage rather than 70 have tr odh sd
Pecemru under separate foreclosures ~ the various
Judge Donoluc on this complaint, hss granted an in
junction RESTRAINING the payment OF any interest except
on the r.t mort ud win order o show cause,
rcturuabe 81 II, % Chambers, why ,Ich an oider
be not continued unul hnal judgment in the case
SUIT FOR $4,000 DAMAGES.
The suit Of Henry Thornton against The wabash Rail
road Company, Thatcher W. Adams aud others, was
argued yesterday demurrer before Judge Van Brunt
IN supreme Court, Special Term. When the Toledo,
wabash aud Western Railroad Company was sold under
foreclosure, u bought IN hy Protective Commit
tee who proceeded to r,OJsuI.c The company uhatr tc
tame of the Wabash Railroad Company. the commit
ter gave the option to all stockholders 10 take stock IN
COMPANY paying 10 q share on their stock,
hut rruurrd them 20 express their option before NOyrm
sc. t'fI alter November 90 A. soon as he heard of
il he of rr to subscribe but refused permission.
IIr a-Fs $4,000 damages The Individual defendants
answered but the company demurred tha there Was no
contract between It and the p'auIih The Court re-
serves decision. John T. Dos Passo. appeared for the
paluuH; Thatcher NJ. Adams for the defendant