New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-06-26
THE COURTS.
A RECEIVER FOR THE CLYDE COMPANY.
JUDGE BARRETT APPOINTS HORACE j. MOODY

GROUNDS FOR HIS ACTION.
Application was made in the Supreme Court,
weeks ago. ia the Of the People OF tue State
against the New-York and Philadelphia Steam Naviga-
ton Company for the appointment of receiver IL
was alleged part OF the Attorney that the
defe ndaut commonly known as the Clyde Steamship
COMPANY had violated its charter in sending vessels
out of the prescribed course between New-York ana
Phladeip ha; II also charged that the hessrS.
Clyde had entered into agreement with certain OF
their former employees. who made directors OF the
company, by which the Clydes received undue and
fraudulent advantages in the distribution OF profits and
in tho management OF the business. Tho defendants
claimed that the plaintiff in the suit was. in reality,
Jacob Lorlard. and that whatever violations OF the
charter there might have been were made under con-
tracts with him. The charges OF fraud were denied
Judge Barrett who rendered decision on the motion
Yesterday that II il clear under the statutes that
a receiver may he appointed before final Judgment
whore clear for dissolution made out In this
the Judge says. after the dreary history OF the
controversies OF Messs Clyde and Lorlard have been
sorupnlons abuse OF the liberal navigation laws OF tn
state" these laws resored TO for the purpose OF
OPERATING uhaer "e nj. cnntrart the former
were the entire nent o. tho corporation
This is the key TO al tho irregularities and abuses hen
followed. These Irregularities commenced Win the
Judge Barrett details the method by which the Messrs
Clyde OBJ aimed control Of the corporation by making
snare OF stock 20 each OF them taking from them an
frrevocabe assignment OF suen share In blank II Is
idle" the Court continues to discuss the legal effect
OF such assignment unaceompaned ny transfer upon
the books OF the company. Looking beneath the sur
face OF the Transaction fad that II was all sham,
ana fact the entire stock has always been owned
equal proportions by the parties 20 the private con-
tract. The law apparently complied with, but IN
reality eyaded With corporation tnus Organized II is
not difficult TO anticipate the additional violations OF
law which followed. No annual election Of directors
has since taken place No stockholders meetings have
ever called held. No money has been paid into
fbe treasury aud the treasurer has been completely
ignored No certificate TO the stock has ever been
fled The resolution OF the BOARD changing the route
specified in the certificate OF organization and the ac
ton hereunder clearly abuse OF the franchse
impossible view these Irregularities ana abuses
as Isolated The conclusion Of wilfu aouse, DOth
of law OF power becomes irresistible. We are com
PEELED therefore, find. first that the corporation de-
iendant has offended against the provisions OF me act
creating second, that IL has violated the provisions
OF law by which has forfeited Its charter Dy abuse OF
It's powers and third that has exercised franchise
or privilege conferred upon 10 by law"
Horace j. Moody is appointed oy Judge Barrett the
recover of the defendant company.