New-York tribune., 1884-12-21
RAILROAD INTERESTS.
ENJOINGING THE CENTRALs DIVIDEND.
A SUIT BEGUN BY JOHN NEwToN--MR' DEfI"
KNOWS NOTHING or 1T.

suit TO restrain the payment OF the
onertery dividend OF and onehaf per cent on the
ca OF the NewYork Central and Hudson RIVER
Railroad Company recently declared by the directors OF
the company begun In the Superior Court yesterday
bv John Newton who Processes to be the lawful owner
~ ak of the debenture bonds Of the company. In MS
COMPLAINT he charges that the dividend has not peen
earned and that the annual report OF the company Tor
the year ended September 30 which was recently hlod
with the Railroad Commissioners, showed deficiency
OF 30 4aOss3 In consequence of the payment or dVi-
dends for the year The plaintiff charges that this de-
clency s exists, and that this sum was Illegally paid
and therefore diverted from the proper uses to
which IL should have been applied Since the close OF the
fiscal year the company has been engaged IN runous
rate war with s rivals and has been carrying reeht
md passengers at lower rates than IL received for similar
service during the year and the plaintiff therefore as
sers that the company has not earned any net prohs
from which pay the proposed dividend or any pait
oft
Briefly rectlng the circumstances Of the recent Issue
nv the companv Of Oooooo0 Of debenure bonds, OF
which 90 800 600 was offered for sale ne 1o2 AMI ac-
ctued interest by DrpNel Morgan Co. acting "a Imam
cia agents of the company, the complainant alleges tha
No houaht ak ~ the bonds FOR Investment but that he
te,evrs u tho intention Of Tho company 10 pay the
proposed dividend out ~ the proceeds OF the
saa ~ the honda nna not out ~ net
hreintine tho dividend was p heen fictitious oidit lef
unanca ahn'l aud 60 make gethet t' lhs ssie o. we
lao nf iha company, aud arp unaepnret ~ me,lsasr ei
E,sip''Vne Esip Vne pa,%Sot "St'' ot ~ any fp,,Aes diyl
drnd, except f,un surplus earnipsa, VII work an
iueparahe Injury to him and to oiher hodefs ol We
dehtnture h0nds that 10 viii increase tho dent of tho
company without seeurng adequate return iSf hs nA
a. ndire aud therefore impair its credit, ahd thal te
resent course OF the directors In misapproratlng me
funds OF tho company, ny distributing lhem Ia !ho
shape OF dividends, viii seriously impair the
vaiae OF tho debeutme bonds and perhaps rem,
der them worthless The piantin den"hds
that tho defendant corporation and It's officers ana
a0cnts shnl be restrained from paying the dlNldehi
which they have declared payable on January 10 ana
that pending tho action an INJUNCTION may Dc shue, 10
that effect W. &. s. w. Fullerton appear as the plain
TN attorneys. ,..-
In the course his complaint Mr. Newton quotes letter
written ley him December 10 tO the president and drec
ors of company inwhch he protested against pay
ment OF the dividend and asked that he action DO re-
sciulc This Il the letter about when Chalnciy hDepeW
second vice-r6sdent and general couIseIf the raoal
company said on the following day was somewhat
nstoiisled when reached the end OF my cOmnunca-
ton TO find that could not place tho name OF te writer
Ihaye pretty extensive acquaietance In the state, Dt
did not recognize the name. recalled thee
them corresponds TO this name linen
nastcncd 10 the directory and asccrained that the
name had not within the telescope vision of Tro":
then went through the list OF names OF al hoilers o
stocks and bonds in our various companies ana sun
coud not fnd the concluded that the man had
bought 100 shares Central short and wanted to make
a few thousand dollars. The name Is one of tue Dest
known in English literature -, -.
II do not know Mr. Newton" said Nlr. Depcw last
night I'VE never heard of him. and no papers have
been served don't know what grounds there are
for an junction against the payment on the ulNdchd
ON January ID. Looks something like newspaper case
diving tho matter To the public before We are lot INTO
IT, guess VIII be nfOImeh however, III uue tlihe'