New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-10-24
4 SUIT OVER h RAILROAD.

An important argument has been IN progress
for some time before Charles r. Lattng Of the law firm
Of Russell Il Iattng, of No. 81 Wiiam-st i'll connec-
ton with suit brought by the Massachusetts, Mutual
Life Insurance Company against the Chicago ana Alton
Railroad Company The insurance company instituted
the suit in the United District Court at Chicago as
tbc owner of eighty one thousand dollar first mortgage
bonds Of the Chicago and Illinois River Railroad Com
pany TO gain possession Of that railroad Which the chi
caeo and Alton Company claims to own There nave
been at least thirty lawsuits growing out OF the matter
within seven years. Last spring Judge Drummond OF
the United States District Court of Illinois, appointed
Mr. Iatting as special examiner to take testimony here
in regard TO the present This not done until re
Gently on account OF another suit Involving the same III
tercsts which was pending i'll Chicago AT the time Mr.
Iatng was appointed The insurance company is repre-
scented by s. W. Packard and J. S. Cooper Of Chicago,
and the Chicago and Alton Road by eXJudge COTydOn
Beclfwith and W. C. Goudy The Chicago and Illinois
River Railroad j., thirty miles long and runs from joliet
H. the Wilmington coal fields, the most valuable coal
lands Chicago. The sinal complaint filed 'y the
insurance company asserts that the Chicago and Alton
Railroad Company, which also runs between Joliet aud
the fields prevent the competition from the
line, entered into fraudulent conspiracy to gain control
Of the Chicago and Illinois Road for much less than its
real value 70 DO TINS the complaint ALLEGES the imam
cia AGENTS OF the Chicago and Alton Road, NJ X. Jcsup
Patton Co.. of this city rented the road and agreed to
advance the money necessary 10 eompete II; Al me
same time they agreed 10 sell large aInOt Mt OF the rail
roads seven per cent bonds and 10 advance the money
upon these bonds Instead OF DONG ms however rs per
agreement they exactcd pledges oil the property or the
Chrn when other large creditors of the road became
pressing and the company was badly embarrassed,
Iesup Patton a. Co., acting under Instructions from the
Ci.ago and Alton Company, refused further advances.
all the time Keeping the bonds out OF the market sun
further to cmbar1iss the new road.
THE complaint charges in addition that IN oIdcr llat
foreclosure proceedings might be brought against thc
new railroad Jcsup PatOn a Co. persuaded John r.
Slaef of Norwich, Conn director OF the chicago lid
Alton Ron buy IA large amount OF the bond, thcy
held This Mr.. Slater did. The complaint declares
that this sale not genuine on the part OF Jcsup
Pntou az Co Foreclosure proceedings begun by law
ella
ioyorablv 10 the Chicago and Atoms interests Mr.
slater has testified before Mr. Latng that he made the
purchase of the bonds in entire good faith One letter
among the testimony offered is from MI Blackstone.
prcsident OF the Chicago and Alton Road To NJ n Jesup
and dated July :, 1878, month or 80 before INC SAFE
of bonds TO Mr.. Slater. The letter says IN part:
think il doubtful about the Chicago and Illinois people
Raising money pay their debts. II matters are not
closed up before Aug !, think the best course Is To
have some buy our interest retcrfns 10 thc mort
or bouds) and then fOrccOse shall regret the delay
In Getting our money back, but foreclosure VIII give us
ali their assets OF all kinds well as the road for our
nresent advance, probably" There are also letters
from Jesup Patton K Co. 10 Mr. Blackstone giving mi
fbe hank and asking Mr. Blackstone for instructions rs
IN how TO proceed In the matter One of these letters
contains this passage: We enclose duplicate account
of / f. Slater OF 3lst utmO showing debit balance Oh
sl72Sl7 10. We do this pTesumng you would nke 10
have he same for reference in case OF need.
hearing In the liked yesterday morning.
Int was adjourned 10 to-day In order that Jesnp fhoh
n Co might have an opportunity to produce papers
bearing on the case.