New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-17
THE COURTS.

METROPOLITAN STOCK CERTIFICATES.
ARGUMENTS on THE MOTION TO CONTINUE THE IN
JUNCTION OBTAINED BY THE MANHATTAN COM
PANY.
The Manhattan Railway Company short
time ago began action the Supreme Court against
the Metropolitan and NewYork Elevated Railway Com
panies and Others restrain the Metropolitan Company
from Issuing certificates stock containing memoran-
dun TO the effect that the Manhattan Company guaran
tees the payment OF 10 per cent dividends on the
Metropolitan Company's stock temporary Injunction
obtained. and the motion to continue pending the
trial was argued yesterday before Justice DOnohue In
the Supreme Court, Chambers David Dudley Field ana
William A Duer appeared for the Manhattan Company,
ana Francis C. Barlow for the Metropolitan Company
Mr. Duer read an affidavit by Robert NJ Galloway TO the
effect that at election Of directors for the Metropo
itan Company, held November g. Board Of Directors
had been chosen who represented party Of the stock
holders who were opposed to the consolidation agree
ment entered into between the three companies in Octo
ber 1881 by which the per cent dividends guaranteed
OIL the Metropolitan Companys stock we're reduced to
per cent dividends The present directors, Mr. Gala
way charges Intend 10 issue certificates OF stock
bearing memorandum stating that the Manhattan Com
pany will the 10per cent dividend Of the stock OF the
Metropolitan Company. Rumors current that s. IL.
Kneeland and ohesha asserted that directors
would issue such certificates In the event that such
new certificates issued the Manhattan Company
would De seriously damaged Mr. Galloway said that lie
owned several thousand shaIes OF Manhattan Company
stock.
John W. Nash appeared for the Individual defendants.
Kneeland, Street, Berry and Burnham. He SAID that
none OF the motion papers had been served on bis clients
and that therefore he did consider that they would
be bound by the result. Mr. Duer answered that
the object Of the suit restrain the Metropolitan
Company II sIccecded IN that II would be sufficient
General Barlow replied TO Mr. Duer. He read an aii-
davit by S II. Kneeand, In which It was asserted that
the consolidation agreement Of October 1881 had Oeeu
ratified by less than 10 per OF the stockholders OF
the Metropolitan Company IN interest. The agree
meut had in fact never been submitted to
the shareholders for ratification. such
submission Of the agreement was by law necessary its
validity. The directors had no auth0rity-except that
alleged that he owned 10000 shares OF the stock OF the
metropolitan Company hat he was me president OF me
acquainted with all It's concerns. He had never hear
stock, or Orindrrcty to do tue Things complained
OF la ,hc complaint The directors mad never discussed
the pau OF issuing ccrtnca e. OF stock, aud Tie
were false. He himself had never heard any OF the
rumors ALLUDED to in MI Gaaways affidavit, anu he ala
MOI believe that tnrre had been any SUCH rumnr-
current IN Wall street Mr.. Kueeland then asserts mat
legal existence ana consequently hud power 70 enter
into any contract General Barlow after read
for the Injunction asked for had been made
out person or corporation could not De
brought into court aud sadaed with al injunction be-
cause some one else feared apprelended sOm,tnIng
Before I'M IucUOu could b. granted restraining me
doing OF act IL must Ice clearly tnat there was
a setded intention 10 d. the act David Dudley Field
said that II, General Barlow has declared the MAJ
haitian COMPANY Lad no legal existence, then II would
be clearly fraudulent on tine par OF the metropolitan
COnpys directors To certificates OF stock bearing
a memorandum stating tAGt this X1sting Manhattan
Company would pay 10 per cent dylCenus on tHe der0-
pOlt3tn Company Is stock II there valid lease
there certainly 10 binding agreement to pay an
rent ut al b. the Manhattan Company. Justice DOnOhue
reserved his decision Oh the motion.
Ine Manhattan Company began the action before the
new Board OF Directors ., the metropolitan Company.
winch Is hostile 10 tie agreement ~. October ISL hdd
been elected. An application was therefore maze yes
tcrday for leave to lie "a supplemental complaint, IN
WIicH Injunction f. asked raining Ill
TecOrs irOI issuing any certificates or stock, and
restraining item from interfering with the Manha
Company il is control OF the Metropolitan COM
pdny's STOCK. Justice DOnOHue granted tue Application
and also temporary Junction. Inc accompanying OF
| der to SHOW cause made returnaJA Oh Monday.