New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-07-15
THE COURTS.
,LLEGED FRAUDULENT BONDS.

ALLEGED FRAUDULENT BONDS.
ACTION TO RECOVER MONEY PAID FOR BONDS OF
THE NEw-YoRK, BOSTON AND MONTREAL RAIL
WAY.
John Cooke Of Richmond, Yorkshire, Eng
land is tie nominal plaintiff In suit begun IN the eu-
prrme against the stockholders of the Newfork'
Boston Montreal Railway and others, that the SAFE
of the compauys bonds 10 the plaintiff and Others SIM
ary situated may rescinded and declared fraudulent
and void Among the defendants eight
OF the Messrs. Segman, William Butler Dun
can, John @. Hoyt and other prominent bank
ers and railroad men. The allegations OF the
complaint, which are very voluminous. represent
that the principal defendants were creditors Of the in
solvent NewYork aud Boston, DutcheSs and Columbia
and Harlem Extension Railway Companies In order
TO relieve themselves the pressure resulting from
the insolvency OF companies they devised the
plan of making, in London and elsewhere IN Europe
where the companies unknown, temporary loanor
advance upon the pledge OF such securities as they held
for Whatever they might be able 10 get. Stimuli taneOusy
they agreed It IA charged to exchange such securities
for new railroad bond To be devised by Them ana To be
secured by new aud first mortgage upon the alleged
COL soiated property of these railway companies. III
further alleged that IN iurtheTance oil TINS eOuIa
tion and conspiracy and without authority OF Jaw, 1e
defendants assumed TO he a railway corporation nndef
tue name OF the Newly OrK. Boston and MOhtita huI-
way Company; that they caused 10 De prepared anu ~
culated false untrue and Il!sOry report ot me pre-
tended road that they represented TO ne plutin d1
corporate property OF the three roads above named
and Of that Putnam ana Dutcbess Ram ohu Son
pany and the White Plains and Albany Railroad son-
pauy iwo compa organized In fun theTance or tne
alleged piracy that fney also represented mat tue
new company had executed a first mortgage upon an
thc property the ye companies Ia secure nr>t mort
gage bonds To the extent of Sl2,2jO00O. The moneys
arising from the bonus were TO be pri-
marv applied TO the extent OF S625Ooo to the com
pleon of hrst-class line from Newiork to Rutland
Vt -,
The plainR says that te and thirtyseyen other Eng
shmen, whom he claims To Represent, bought bonds OF
the new company under the statements OF the pros
pcctus These statements, II s now clamed. were ase
and fraudulent Tuc complaint cnumerates the alleged
false OF TIE prospectus as to tle length OF
the road its connections NcwYOTk with other rat
ways, tine OF the country through which the
Inc nuns AID The pIOsp cts tie road Tor the carrying
OF passengers and freight. M. Cooke gives as the
reason why the thiry-seyen other Englrhnen
acting with him not made parties plantn, Il ina
IN II testimony In the may be token by commits
SION without requiring them 10 come 10 America Inc
plant asks "A OF the court that he and the
OtgrrS similarly situated be repaid tue amounts
paid h. them their bonds. No answer has yet been
served II il stated by counsel for OF the deleud-
ants mat te charges misrepresentation ar 0Ons piracy
deuiod tue defendants ia clam that u false rep
rpsenatiUhs maze fraud was pract>ed, IL Was
by persons in Europ, TOR whose aconS tney are n0t t
suonsbl The New-YOIk, Boston and Montreal RAN
way Company SAID TO Dc lus0lyeut.