New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-04-02
THE WABASH RAILkOAD SUITS.

AN ORDER OF THE ILLINOIS COURT DISREGARDED
BY OFFICERS OF THE ROAD.
In the suit of Samuel MelOy against the
Wabash Railroad Company order granted last
week in the Champaign Circuit Court for an examina
ton OF the officers and books OF the company at Toledo
Monday the day set for this examination From
private dispatches from Toledo received here,
It was learned that this order Of the Court not
obeyed The treasurer and auditor refused by the advice
OF the companys counsel TO appear for examination aud
the inspection OF the books denied by the company
In regard TO this refusal officer OF the company
Monday said The proceedings begun IN the Western
courts were merely preliminary to determination OF
the question whether the unsecured equipment bonds oil
the Toledo Wabash and Western Railroad, issued in
1862 were o lien the property OF the Wabash Com
pauy under the consolidated mortgage made IN 1867 by
the old corporation. The Judge has decided
that the plaintiff has probable cause for
action at the time lie has refused the receiver
ship and the mlOrary injunction The real point al
issue the lien OF equipment bonds VIII be probably
a matter Of long litigation. These equipment bonds are
an unpro obligation OF the former Toledo Wabash
and Western Company, having been issued by that com
many IS plain bond without security. They men
TONED afterward as q part Of the old indebtedness
which was to be provided for by the Issue OF consol
dated mort bonds OF 1867 but the holders ud mol
nv themselves OF tie benefits OF this provision PRIOR
TO foreclosure OF the gold mortgage under when INC
Wabash Company holds ITS title 10 the properly
know reason IOI refusing an tAaullldtlOu o
COMPANY books other Than that the company through
It's counsel did wish in amy way To recognize 40,
validity OF the alleged lien OF the equipment bonds AS
part of tho consolidated mortgage or 70 cOprJnlse lIs
position III the present ana future lltlgatluh $50
IL IL claimed the other ngud, by the holders or 'he
equipment bonds that they were secuied by tho conso
d "a gage, and that al the Tune O the foreclosure
sale unaer gold mortgage, which was JUNIOR u tue
consolidated mortgage tnry protested against TIE safe
Ga that account order wHs granted Dy Tue court,
that the sae should be made subject 10 any equities OF
the equipment bonds that might lie established hubsc
0uentIy In the THIS question Is claimed to be
the reaItbject OF the suits begun IN the linos anu ILL
diana courts.
A bill was filed Monday In tho Brown Circuit Court
al Mount Sterling, Ill, IN behalf Of Low HOlbfOoh
against the Wabash Company and Others, asking Tor me
foreclosure OF the fret mortgage executed by the Onry
and Toledo Railroad Company on May ~, 1850. Jhc
plaintiff holds Of the bends that tue mortgage was
mis- complain asks that p nding
the litigation Court enforce the trust by placing 80
much OF the road extends from Clayton 10 the west
SIDE OF the Illinois River. opposite MeredOsla IN tne
hands Of trustee receiver. The bill attacks the lt-
cllty or the consolidation. The Quincy ROAD Is part
OF The line agd OF the consolidated company. Ac
coruing the annual report recently submitted Dy the
president 20 the Wabash Company there remain unas
seated OF these bonds only $4,000.