New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-06-24
TENANTS. NOT PARTNERS.
UNIV up BAGALEY WANTS A RECEIVER.
~rprurR ARGUMENTS ON THE SOUTH PESNsfL-
vANIA MATTER.

r,,,p ARGUMENTS ON The SOUTH PENNoih-
WANNA MATTER.
,.roument on the motion, made in behalf OF
pa,nb Bagaley his suit against the south fehnsyr
soria Railroad Company, the American CONSTRUCTION
romrany william X. Vanderbilt Hamilton Mch'
s,,Jev Franklin b. Gowen and Others, Tor tre
o,otment of a temporary receiver and an injunction
canst the committee OF the syndicate coutroi"e .io
a,road was heard yesterday by Chief Judge oeae"los
An the Superior Court, Special Term. james d. pii
reseuted another affidavit by the plantii IN winch NC
that he never consented TO any DELAY ON the par. Vi
the railroad company in executing It's mortgage or
GOT 900 OOO or in issuing its stock and bonds on account
of contemplated change in its route OF ior any other
canse 1t sets forth also that he wrote To treasurer
Twombley a letter In which he said l do not question
the wisdom Of the finance commuters OF ING genera.
svuooate's decision With me 1t is purely question Oh
t IN nav into the treasury OF the company this large
sum Of money without receiving any bankaoe collateral
Ia return" ,,
Colonel Edward c. James maintained that the Ieno
asked for should be granted on the grouhd 'ha' 'no
alteration of the syndicate agreement was agreed W
all except the plaintiff and violation OF inc uus'
reposed in the committee, and on the ground 'ha o
contract made by the railroad company with the con-
sructon company and the proposed issue oil STOCK anu
bonds by the railroad company we're Invalid nc
claimed that by the terms OF the original agreement c
subscribers the stock were tenants In common Oh Tue
nropery an not partners and that therefore majority
aonid not bind a minority To constitute partnership
there be agreement 10 sen ON JON, hceoun.
TIVE relation of committee to the SUBSCRIBERS was
nnrey that of trustees. The plaintip had ialsniuy
nlied the terms of the contract Duu ON odfv
1874 all the other parties made new contract ou ny
ing the first contract by changing the time whe .ne
bonds were to be recee anu "i tS pcomniiee thus
changing the syndicate into partnership Inc pnnn
refused to consent 70 TINS ~ @ arn anu Sreement e
was entitled equity to be relieved from " anu 10 nav
and the business wound up, the case Of dissou-
ton OF partnership. Colonel James Sfgue1 a.. tu
Cansttuton of Pennsylvania, Article XVII Section Z,
proyidiug that no corporation snail ISSUE siochs y.
pToerty actually received aud all fictitious increase OF
stock or Indebtedness snail he void Tue agreehvn.
10 give par value OF stock ana DOuds Ior
100000 600 IN labor done, money or property, was a
fraud on tue and people of
ra hts must be clear and wel-dened in order to be
entitled to protection by Provsoi c"Ies Tas not
the right to uave an agreement enforced ou' rgns 20
nave ma ,w for appontng an ad interim for the
purpose of making an anticatory accounting on oou d
Mr Baugs that the counsel the other side will con-
ceds that the court cannot be called upon 10 invent
something for receiver TO l,se Possession pos oi'
Mr.. Bangs-You will
Mr. Bangs-Well, that's a vast concession Then me
counsel must point oat some oa a that the only
existing property Is valueless = o,o ,.. ., ,a,,d
stock Mr. Bangs rerlied that beyond that there was
nothing according TO the plaintiffs theory kghts unuer
could
any other rights Was there insecurity about Tue
present condition OF the property sought by the PLAIN
IN IL was not alleged that any of the defendants were
isolvent One of them the Secretary OF the Navy;
another was William II. Vanderbilt. ,.,
Colonel James-Fn say here there Is no rear OF soi-
vency. . - ,.,so .hn.o d
Mr. Bangs-Is this application made because there Is
danger fnat these gentlemen will not execute their
trusts for the best interests OF the property
Colonel James-That is not charged.
MIR Bangs Then the only ground Is that you want TO
obtain possession of the property. -
Mr.. Bangs declared that the plaintiff was trying 10
xarf ha
lankabe collateral for his invested money. He did not
want iu faith to take measures 70 prevent waste
What was a receiver TO dot was lie 10 he
ornamental or useful The answer was that ne
was 10 hold until final jugm-nt OF the court was
rendered Ito was to take the place OF sucn men a.
William X Vanderbilt and the rest OF the committee OF
the syndicate who were expressly appointed Dy soe
contract mold the property His opponents cohceueu
that NJ. Bagaley bound by the contract wnen ne
first entered into IT. but he now sought to escape from
his obligations under IL on q uund that the Constt
lion aud laws OF Pennsylvania prohibited doing tha'
which he had agreed should he done
John d. johnson and Colonel James rnrtner argued
the uieson OF the constitutIonaiy OF Inc syndcaes
agreement. and the court reserved It's decision