New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-11-23
TIE JERSEY CENTRAL LIrIGA1IoE.
ARGUMENTS FOR A PRELIMINARY INJuNCTIoT n !
FORE JUDGE NIXON.


FORE JUDGE NIXON
fFRoN A SPECIAL CORRESPONDENT OF TIE TRIBUNE
TRENTON, Nov. 22.-'Thc arguments for
preliminary Injunction in the OF William b. Dinslnorc
against the philadelphia and Reading Railroad Company
and the Central Railroad Company OF Ncw-Jerscy were
begun before Judge Nxon in the United States Circuit
,onrt In This CITY this morning In behalf OF The
painaut appeared Roscoe COnkhng, Clarence seward,
Barker Gunnere and +. s. Green. The Reading WAS
represented 10y Franklin B. Gowen James L. Go~eu,
George NJ Robson, ex-ChancelOr Williamson. a. O.
Rchey. and George Il Kearcher
Mr. Gummcre began his argument in behalf OF MI
Diugnoro He said that 1t alleged that the obi ect OF
the complainant was to prevent tue carrying cut Of the
Readings plans TO deliver into NcwY0rk over the Cen
tra Railroad vast amount OF traffic from certain parts
of PENNSYLVANIA and the South Bat Mr. D!nSmorcs oD-
eet was not TO sAut out this traffic OF defeat This scheme,
but 10 see that profits OF IL went into the treasury OF
theCentral instead Of the Reading Railroad A!r. Dns
more Ia 1880 bought 900 shares OF Central stock and
Thereby owned one one-hnudrc part not
alone of the railroad property and franchises Of the Cen
trial but railroad materials supplies cash. book debts,
bonds stocks. etc, other than the rolling STOCK OF TIE
yane of S25 645 1913 81 This was 40 Accumulated SUI
plus OF assets belonging TO the Ccutril shown
by the balance sheet OF the company, s@".n
to by It's president. II. X Little, in pro
cecdings directed by franklin +. Gowen, and
presented 10 the Chancellor few DAYS before Gs alleged
leasc was executed. The report OF which tls 57lInce
sheet was part further showed that the earnings u the
Central for the year ending December 81 1852. were
g727653, equivalent to per cent dividend aud
also that for the first months at 1888 the earnings
had increased 500 900 tho for tue same months
in lsS2 The profits OF the Central al "a" tine 81 Tho
lease were therefore at the rte Of $372279 % per
annun or over per upon its capital stock The al
missions Of the defendant further show that the Reading
Railroad is engaged in an enterprise 10: bringing over
its own lines large amount Of additional transportation
from Ptt,burg and the West, which must necessarily,
lease or no lease be the Central lines TO New
York.
Mr. Gum,ncre analysed the terms Of the lease and
claimed that in fact, gave TO the Reading as bonus,
this SIS 900 900 Of accumulated assets besides aAcluug
in practical perpetuty the Reading, all the franchises
and roads Of Central the Reading paying only liter
est on the mortgage debt anl cent On tie stock II
not only gives TO the Reading all the RAILROAD property
but transfers absolutely all the real estate and other
property of the Central amounting as is admitted, TO
over $50 100000 which purpOrted 20 be mentioned ia
schedule =. schedule which does not accompany the
printed copy OF the lease.
"TGe counsel should not make such statements inter
rupteI Mr.. Gowen; that schedule is IN the printed
lease"
cit is not in the printed copy" persisted Mr. Gum
mere.
"Not in the copy print ID proof AM obtained sur
reptiousy by the complainant counsel bus il Is Ia the
Regular printed copies OF the lease" said Mr. GOwnu.
The counseLis mistaken; that schedule was printed
IN the copies not for general dist bnOA, ana not
printed with the later edition., reOTted Sir GUNNER.
Continuing his analysis OF the lease, Mr. GunmeIe said
that the operation OF its sections In regard 10 the
Payment of the funded debt the Central the
thatroad would inevitably be wiped ont IN fifteen years
The Cantral covenants to pay OF within thai time It's
600 of mortgage debt, and there is IN tho lease
the part the Reading cent OF
interest the Central after the fmte debt IL
paid OF The Central ouly pay that debt by new
loan. aud this alleged be prior lien 30 any
suqh loan Tue Reading by the lease, has te option Of
using the proceeds Of the S2500OOO0 OF accumulated
assets 10 pay OF the Central debt to improve the Cen
ua Railroad property II 1t chooses TO set aside the
S25OO0,0O0 for improvements, 1t Uud0lbt-
edV Will need 10 II its scheme for taOr-
ongh line Is carried ont, then there will be
nothing left for the Central Company but be sold out
under foreclosure and wiped OF existence. The lease
also provides that the president of The Reading shall be
the attorney tevocaDle or the Central to do every
and execne every instrument which Is necessary the
Performance OF The lease the part OF he Cenra the
6eadng thereby being endowed with absolute 10
hdQt and It's views 10 what TIE
CURES OF tie Central Still further the Reading sell
ana convey tor any price It may see ut any P2rt OF the
central RAILROAD or other Central property, wf
lnaty execp; the consent of the Central. which
gOily OF board Of directors OF the Cent l r author
Hea 70 S4yo aud the rent OF the i.cdIlg Is 10 be
nuced iD proportion ~ nc property sold
me sale lheteiOre. VI the whole raT0a Tor enough 10
Pay Tue encpnbranees upon IT, the Reading viii cxtii
go we fent and leave nothing al an t0 Tie Central
stockholders.
Improvements pleases 10 the Centra aud the Cen
must issue stock or bonds 10 pay Of H. ouppOcIg
vac hcAligs Technically " perform 10 cOyrat, tie