The New York herald., 1878-03-08
RAILROAD LITIGATION.


THOUSAND DoLLARs-HIsroRY OF THE STOCK
HOLDERS DIFFICULTIES TOLD IN THE COM
PLAINT-ERIE.
The tribuatons OF holders OF railroad stock. which
have been 80 fully written mp, have received another
striking illustration in important suit just brought
by Henry Thornton. Of Buffalo. In the Supreme Court
Of this city, Tor $4,000 damsges through his coun.
sci, Mr. John R. Dos Passos, against the Wabash
Railroad, whose present board OF directors
comprises such we'll known New Workers
a. James A. Roosevelt. Cyrus W. Field,
Norris X. Jesup and others. Tho story, detailed
In tho complaint is OF groat interest In connse-
sion with the many schemes for railroad reorganiza
tions which just ut present keeping the courts
busy, ana appears TO have grown directly out OF
the violent struggles for tho possession OF tho Wabash
road, whose progress has been from time TO time
noted In those columns. Tho plaintiff asserts that In
the last OF the road he has been practi
oally deprived OF his 200 sharos OF stock, without
notice and without duo process OF law, ana has been
left, with many other unforunates tout In the cod."
SELLING ROAD.
In February 1873 tho complaint rscites the Wabash
road had debt OF Sl6, 0o0 900. when the directors
Al that time went work and issued $1,000, 900 Of
'sgold bonds" secured By mortgage upon tho road
soon the interest on ,heso gold bonds not forth.
coming and the holders brought legal proceedings
ioreclose heir mortgage and sell tho road decree
Was obtainsd In Illinois, but the stockholders,
alarmed, got together. formed protective
ground, as set forth IN their petition 10 the
court, that the ISSUE OF tho gold bonds
therefore not binding upon the company. Unior-
unatey for the stockholders, the stay was not OBJ
20 be ns could
uhe sale taking place IN another part OF the
Sa,el tho road had already been sold to the commit
- 81 unlt hand ns,la
maintains that, by OF the stay which had been
granted and iE force on the day and at the limo
OF the SALE tho latter illegal and null ana void.
COMPROMISES ErFEcTED
compromise finally enectod between tho gold
bondboldsrs and the Protective COMMITTEES OF the
stockholders among whom many reside In this city.
According thcir agreement the stockholders would
iurthcr contest the legality OF the sale by which
The gold bondhoders had obtained possession Of the
road. Tho road was to be rcorganized, company
be formed and tho hve million dollar gold bond
mortgage WIS be wiped out Dy assessing II, 600
ment o00 Tho collection OF these
put into the hands OF Purchasing Committee CON-
posed OF Thatcher NJ Adams, Ossian D. Ashley and
purpose an ONCE at No 50 William street. The Pur-
irsued certificates OF the new stock exchange Tor
tho old, which latter was therefore. as the complaint
AYERS. now worthless Tho committee had been
hoders surrender their old certificates In exchange
for tho new, upon payment Of the $40 assessment
"witnin thirty days" aud 10 buy up Tor themselves
all the stock surrendered within time BY pay
Ing $40 for cash certificate.
LEFT OCT IN THE COLD.
Tho complainant now asserts that he did not OK.
change old stock ior the now, because he never
notified Of the terms OF the sEreemsn; that the
term OF thirty days was "wholy inadequate,
Illegal, inequitable and uDjust;" that he be-
hsves In many other cases tho stockhold.
ers were allowed to come In after the thirty days
and get the stock while ho WAS not; that the
he received notice Of the compromise by cir
cular he offered TO pay his assessment in full upon
bis 200 shares which refused, and that. In iact
the OF thirty days was mado purposey, In order
that certain gold bondholders and other prominent
parties might get mold OF the unsubscrioed stock; );
'swhcreiore plaintiff demands judgment against the
said defendants for damages 10 the amount Of $50 900,
together with the costs aud disbursements OF tns
ton"
Tne plaintiff will claim upon tho trial OF tho
that II would 10 monsti injustice 10 allow COM
milse in this manner practically deprive OF Their
stock hundreds OF holders-many Of them scattered
over distant paris OF the country and IN Europe-un
less they como forward in tho brief space thirty
days 10 subscribe Tor tho new stock. ne should be
Unsuccessful the present action IN this city no tn
to take recourse tho Western courts
TO sct aside the original sale OF the road.