The sun. [volume] (New York [N.Y.]) 1833-1916, 1884-12-21
PRICE THREE CENTS.
TO ENJOIN VANDERBILT.
JOHN MELTON Sues TO STOP TIE NEW
FORK CENTRAL DIVIDEND.
Ills Debenture bonds, RouEht Trustfully n
October, will be Damaged, he Tkiuhs
~ Dividends are Paid Out sf DeAeits.

October, will be Damaged, he Tkiuhs,
~ Dividends are Paid Out or Deaeits.
John Newton read In the newspapers lately
that tho Now York Central Railroad had de-
clnred a quarterly dividend Of y per cent. ON
Its capital stock, but that the dividend was un-
earned and that tho company had no money
out Of which lawfully to pay It, Nevertheless.
he read. the dividend would DO paid on Jan. 10
next and thereafter.
Ho held six OF tho debenture bonds Of Mr.
Vanderbit's railroad. lie says that he studied
the figures OF the roads report for tho fiscal
year ending Sept. so. and was convinced that
the newspapers were right and that the divi-
dend could not lawfully be p1d lie wrote this
lettor to President Ruttcr and the directors:
GEsrLsusS am the owner OF some Of the d.beuture
bonds OF your company which was recently informed
.of "s1s
.Sisisnsn.. Sssaily "sd IN rssaras ,ns sa.nins:s
rSr Of ha dGf O S% war; S
S$ g s %i s II Ct:
holders ; o. the bonds mentioned rar,cuar.y mn act
a; s; @ J;
funds misapniied '' Wv '''''''
Of e IS a nsnq ns
declared PAYABLE tie office Of the Treasurer OF the
AK you promptly to re.eind the resolution authorizing
a,,o desire 10 notify you that, pne., you comply
With this Sc legal Gee A. a may be I'D
very WI" DC ' SSs''
terday In the Superior Court, by William and s.
,b to rss Ne rom
failed to roscind their action and are going to
the company has not on hand any sum what
ever Of is former earnings not not reGui5ed to
report SHOWS that BY ~ paying per cent. IN
av ia ad last gfsr It created deficiency Of
woras sSst dyeTsd Sst IA H,aHs
n1s to TaGh d n" bSn pqh
yh ish Las Las not been to turn th; assepsy
iss has mad der NO o'n me-, pross 81
for the payment Of 50, 500; 900 Of mortgage
ment Of So, 5ss; os5 Of floating debt. the COM
pany. IN October, last. proposed to borrow
aid for sa OF he bonds
| 1902 and accrued interest: that tho company
has for years pad a ar and
sibility and good management. and that tha
bonds though being simply u prom Use to pay.
Mr.. Newton bought sly OF them; par value 81 900
made in ignorance OF the fact that the compa-
| ny intended to declare and pay in January an
| unearned dividend. He asserts his belief that
| the company intended TO pay the dividend out
| OF the proceeds of these bonds and that one
| Of the objects OF paying. tho previous uncarned
| dividend was to Keep up a fictitious credit for
| financial ability and make u market for the
| bonds. and that 1t did make q market for them.
| The companys funded debt. he says. Is $780,
| 600, 900. md tho floating debt is large and has
been increasing whtlc the company has been
paving big dividends. Paying moro unoarne
dividends will increase tho funded debt with
out return and bsvond the value OF the quick
assets. and will impair the roads credit and
tend to oprevont the payment OF interest
on it's funded debt and dobenture bonds.
There Is no provision in the dcbrnturc bonds
that tho principal shall become duo upon de-
fault of interest, and the plaintiff has no other
security than the wise and honest management
OF the company If the managers keep on
misrepresentation the revenues and distribute
ing them among themselves and other stock
| holders. the value of the debenture bonds will
| be impaired II they are not made worthless
| They have already deprecated in value to the
damage Of the plaintiff. He demands iudg-
ment restraining tho directors from paying
that dividend.
The complaint is acknowledged in Kings
| county. The only John Newton living in
BROOKLYN or in New York. SO far as the direc-
tories so. except n policeman in Madison street,
is MAJOR Con. John Newton. U. y. A. OF lat
Prospect place, Brooklyn. who mined Halletts
Point reef in He'll Gate. and blow II up one
Sunday in 1916. He was in Washington last
evening. and Mrs. Newton did not know
whether or not he was the plaintiff.