The New York herald., 1879-03-05
THE COURTS.
Contracts of Olyphant & Go. with the
Peruvian Government.
THE CITY "L" ROADS.
Punishment Melted Out to the Heroine
Of Fifteen Burg|aries.


mission merchants. has just been commenced In the
Court of Common Pleas. and promises to be lengthy
and hotly contested suit. The action. which Is
brought by Henry NJ Olmstead assignee of the in
solvent firm. against Drexel. Morgan Co. and
William b. Grace h Co.. came before Judge Lawrence
In the Common Pless Special Term. and was on
ON application for temporary injunction.
the and grounds for which are
elaborately stated in the complaint. During
the year 1877 Olyphant Co. conducted certain ncgo-
tiations with the government of the Republic OF
Peru with reference to the sale of nitrate Of soda
and made certain proposals to that government for
supplying tho markets Of the United States and
Dominion of Canada with nitrate Of soda. which
duly accepted by tho Peruvian government and a
contract entered into to this effect. This contract
being somewhat indefinite subsequently supple
mentcd by another explanatory contract In pur-
suance Of these contracts large number Of vessels
were chartered for tho purpose of trans
porting the soda from the ports of Peru to
the ports OF New York aud San Francisco and other
ports of the United States. and brought large guam
titles of the nitrate OF soda to this country Large
account OF contracts In addition to assuming of
largo obligations for freghts and insurance and
other necessary expenses Of transportation OlyphaDt
CO. also paid large amounts in addition to said
advances for surplus arising from such sales. 1t Is
further alleged that III order to obtain FUNDS for the
payment OF advances 10 the government of Peru
Olyphant %Co. entered into an arrangement with
Drexel. Morgan Il Co.. whereby the former made
their advances to the Peruvian government by means
of drafts under letters of credit by Hoffman
Atkinson. their agent at Lima: Peru. upon
j. S. Morgan Co., of London, payable to the order
of various persons representing the Peruvian gov
ernment. To secure j. S. Morgan Co. the bills OF
ladins wcro made out in the name Of or indorsed
and sent to Drexel, Morgan Co., in this CITY, who
held them until the arrival of the respective cargoes.
all of which were consigned to Oiyphans Y 20; On
surrendered to Olyphant Co. the bill OF ladng, and
furnished a trust receipt acknowledging that
aud hold
and account to Drcxe Co. to the extent of the ad
made thereon by J. S. Morgan Co.. and
also certain other advances made by Drexel,
Morgan Co. The market price of nitrate
of soda in this city being usually about three cents
per poma tue 10 S %nGn ,ne III t o.
tracts ut the time Olyphant Co. received each cargo
In the Peruvian ports amounted approximately to
and half cents per pound, and the profit to
which Oyphant & Co. became entitled was approxi-
nately one cent per pound. leaving margin OF sur
plus proceeds approximating to one-half cent per
pound, and Olyphant Il Co., for the purpose of OBJ
tanning funds to meet the large amount OF their
rent expenses under the contracts obtained advances
upon security of their interest in the proceeds
OF the cargoes from Drexel. Morgan Co.. and the
Peruvian government being frequently desirous Of
receiving from their consgnees before the sole Of the
rargocs advances upon expected surplus proceeds
Olyphant Co. accepted various drafts in favor Of
the government and procured the funds for their
payment from Drexel, Morgan Il Co. upon the
curity of the supposed remaining interest OF Onehaf
assonett "f "rmhamt re sxec NV vessee car
tered mentioned above had arrived Mt this city, and
their cargoes remained unsold ut sea. having
oil previously sailed from the port of lquque, Peru
The agent of Olyphant " Co. had advanced to the
Peruvian government the full amount required by
the contracts, and had also accepted nine drafts
drawn by their agent in Peru in favor
OF various persons and discounted by the
the sS Of sho
Upon its supposed remaining interest Of onealf per
cent pc per pound: and for the purpose Of providing
plant Co. procured large advances upon some Of
the cargoes from Drexe Morgan Co.. and also ad-
<1So
Taber. Five other vessels at sea or being iadeu
but no advances had been made thor cargocs. It
Is further stated that tho 25th of january, 1873
the defendants, William II. Grace. Michael r. Grace
and Charles Il. Flint, doing business ". r. Grace
Co.. received or claimed to have received from the
government OF Peru power Of attorney. and that
they thereupon demanded from Drexcl. Morgan L. Co.
the Endorsement and delivery of the bills of
lading. tar they had come into their
hands, for all OF tho twenty-one cargoes and the
storage receipts aud other documents and papers re-
lating thereto which had into the possession
Drexel, Morgan " Co.. and that Immediately there
after w. Il. Grace Il Co. took possession OF the
goes already arrived and claimed the right to those
ut sea. although plaintiffs had forbidden Droxcl 4 Co.
to ndorse tho bills OF adng deliver the cargoes
any other person. 1t is further alleged that Drexe
Morgan " Co. unlawfully converted and disposed Of
the bills Of lading to their use, that before the
commencement of this action plaintiff duly de-
mandcd from them the Endorsement and de-
livery of the bills of lading and other doc
uments and offered to give his trust receipt
Uvphan but that thew rsfused ani ,Sas
a Co. being similarly requested also refused. The
complaint then goes to state that the plaintiff
willing to effect sales Of the nitrate the usual
aud that lie has received offers from ponsble
parties. but he has been informed that Grace Co.
claim that he has rights to the cargoes and that
they threaten to sell them all and remit tho pro-
Goods to the government OF Peru, thus mperilling
the rights of the preferred and other creditors OF
Oiyphant Co. The plaintiff accordingly asks for IN
accounting relating to the nitrate of soda tho
plaintiff may have judgment against the dcfendnnts
Drcxe Morgan Co., for the valuo of tho nitrate
soda, being Sl.OvO.0O0, less the amount which may
appear to be due to them for advances that he may
have judgment against Grace H. Co. for the full
amount OF the forfeit and the full remaining value
Of the carSocs. less the amount for which they may be
adjudgcd to have lien, and that In the meantime
Grace Il Co. be enjoincd from paying to the
government OF Peru or to any person or pcrsou u.s.
corporation association, any portion of the pro-
received to be hereinafter received from snlcs
Of the nitrate of soda.
Upon tho complaint. embodying the facts rs above
rccitcd, Judge Iarrcmore granted q temporary In
junction restraining any disposition o. the pro.
cecds OF such sale, making tho order to show cause
rcturnablo on tho 10th inst.
ANTE-RAPID TRANSIT CONTRACTS.
After the usual legal delays the trial OF the suit
brought by the New England Iron Company nrainst
the Gilbert Elevated Railroad Company and the New
York Loan and Improvement Company was COM
mcnccd yesterday. before Judge Freedman in the
Superior Court The facts contained in the plead.
ings are somewhat extraordinary. As stated In Tho
complaint the oath of March, 1873. an agreement
entered into between the parties to the suit
whereby tho plaintiffs agreed to furnish matcrin Is
and construct and finish. ready for tho laying