New-York tribune., 1882-09-27
RAILWAY INTERESTS.
DEFENCE OF THE AIR LINE LEASE.

The suit of William J. Hutchinson against
the Boston and New York Air Line and the New-forK
New-IIaven and Hartford Railroad Companies, to re-
strain the execution OF the lease OF tue
former road to the latter. was heard De-
fore Judge Wallace In the United States Circuit
Court Syracuse yesterday. The brief OF F. Baldwin
counsel FOR the Air Line Company, that the plain
tH who holds 1900 shares OF common stock, had no
other right than to argue and vote against the lease
which made according law and the charter Of the
company. The directors OF the New Haven Company
Mr. Baldwin says, unite in the opinion that the rental
under the lease higher than thecarnng capacity OF
Air Line road No fraud or breach OF trust the
part Of the Air Line roads directors ia charged only
director Of the NewIiaven Company ownes any AIT
Line stock and no has share OF common The plain
tn5 claim must then be that the creation OF common
stock by charter is implied restriction any lease OF
the roat that does rent enough to give
dividend on the common stock, or such rent as the
common stockholders unanimously agree to be a
able somewhat similar clause was rejected in the
OF the Erie Railroad foreclosure The Court Mr.. Bald
win says is asked by the plaintiff to give minority Of
the stockholders power which the Legislature mas eX-
pres y denied, by making threeourths vote ccncln-
sive TO lease Tho remedy by injunction Is an extreme
one to be invoked except in clear case and to pro-
toc established ght. IL Is argIed that the plaintiffs
actions show that his suit Wall street stockobbng
one. II the restrainn order is Continued TIE emoarss-
mont to both defendants will he great. In con uson,
1t Is argued that the lease trOy3 the market value
OF the plaintiffs stock and -ilega and incquitable the
plaintiff may have . rglt Of action at law FOR damages
against those who have wronged him But damages TO
a small amount will be full compensation and the sol
vency OF the corporation and It's directors Il unqlcs-
toned. he could then have no standing In equity
Numerous adidavits support the position Of the de-
PENDANTS. f. Elery Anderson, one Of the arDtrators
under the policy contract between the roads aud former
y president of the Air Line that from his knowl
edge that road that operated IN competition with the
NcwIayen rold il would be difficult. II not impossible
for C to it operating expenses and fixed charges
Under the present system it would certainly be difficult.
if not Impossible for the Air Line TO pay regular per
cent dividends Its preferred stock The possibilities
Of paying the large Of dividends on the
preferred stock already accrued (3l,45o'OO0l,
without first discharging which dividends can
egflly be paid the common, are too remote 10 be
worthy of any serious consideration the common STOCK
practica " having no real market value. Aphonse Du
pratt audi Of the AIT Line depOses that IN $50 when
Gle arbitrators fixed the Air Lines pool percentage 40
months were more than they We're for the same period
10 So The per Ut received III lssO was les III
gross amount than tb' Per cent received IN lS-2
showing great danger OF reduction ~ percentage at
the next arOraOn, and hence decreased dividend on
tue Air Lines preferred stock Tie a.-9 declares thBt
the necessary repairs OF the road wll aDscrp
agreement. He shows that the same rate % increase IN
JOINT earnings ruled during tae last seven years. with
percentage In tuc poo! the Air Line road woId ar the
end OF the OF the proposed lease, have accumulated
fcrrcd. ahead Of he common stock. with the same con
I'll ions it you'd take, under the present pooling scheme
go years before any dividend could DE paid tne AIT
Line cOmWOn stock. He says tnat the common stock
mad any market value; That IL was listed 40
the stock Exchange contrary the wishes or the
agcment the plaintiff, through Kennedy, Hutchinson
Co the tot engraving certificates OF STOCK ind
the ing Previous teis 10 had ucen offered 10
tie dcpOnent AT per cent by persons acquainted Wlib
ifs and prospective value that the pdintn gave
activity short time 20 tnc stock e. ltAa
been listed; that wien II ceased sOcstas again
offered tie deponeut per cent; ana hat the pres
e. /. Ne Dt e
excess OF what he estimated IT in u suit IN july ls>@
Tne ilaVit Of Thomas J.. watson, secretary OF the AIT
Linz. SHOWS that the common stock has Always voted
with preferred stock the annual meetings OF the
company. Aihdayits sim lar to the above are made ~
By H. D. Worcester. II. b. hammond, Daniel Is. Hatch,
Wilson G. Hunt. Frederick Billings and others
Judge Wallace, hearing tAc arguments Dissolved
the Injunction.