Savannah morning news. [volume] (Savannah) 1868-1887, 1885-11-24
A BIG RAILROAD FIGHT.
THE CENTRAL ENJOINED FROM
LEASING THE WEST SHORE.

Holders of G32, 900 Worth OF stock in
Array Against Holders OF 500, ,OOO, 600
A Lawyer with Ten shares the
Leader of the Onslaught-BearA in
High Glee over the Incident.
SYRACUSE, N. V, Nov. 23.-On Satur-
day evening last Justice Geo. N. Kennedy,
OF the Supreme Court, on motion of Louis
Marshall, granted an injunction restrain
ing the New York Central Railroad Com
pany from guaranteeing $4,000, 900 in
bonds OF the West Shore road and from
perfecting the lease OF the West Shore
road for 400 years. Mr.. Marshall repre-
sents 800 shares OF the capital stock of the
New York Central railroad, much OF
which is owned by Syracuse parties, but
part OF which is the property of capital
lists in other cities.
CAUSE OF THE PROCEEDINGS.
The injunction IS the outgrowth of the
rejection of Mr.. MarshalPs protest made
before meeting Of the directors of the
Central road, in Albany, on Nov. 4. At
that time he argued tnat the leasing of
the West Shore by the Central was
against public policy, and therefore void
that the statutes of the State forbid the
consolidation of parallel and competing
lines of railroads, and that il would entail
an addition OF $50, 100000 to the Central,
and thus depreciate Central stock.
SERVING THE INJUNCTION.
NEW YORK, Nov. 23.-Chauncey NJ.
Dope W president Of the New York Cen
tral railroad, and each of the directors of
that road were to-day served with an
order to show cause why they should not
be restrained from buying the West
Shore road or making lease,
or guaranteeing it bonds. The
suit is brought by Elizabeth B. Gere,
owner of 269 shares New York Central
stock, Joseph Fakes and August Fakes
who own together 90 shares, and Mr..
Marshall, who is the owner of 10 shares.
All these parties reside in Syracuse, and
are represented by a law firm of that city.
The order enjoines the parties until Satur-
day next, on which day the order Is made
returnable.
MIR. DEPEW INTERVIEWED.
Chauncey NJ. Depew was seen tonight,
and, IN answer to question, said: ''The
injunction was served on me and all the
other directors to-day. OF S90,000,000 Of
New York Central stock, only $32, 900 is
represented by the complainants in this
action. The rest OF the stockholders at
the meeting in Albany on Nov. voted in
prominent operator in stocks on Sunday
that the market was to be sold short to-
day by virtue of meeting held at the
Windsor hotel. A copy of the injunction
was shown at the meeting, and it was
known that the papers were not to be
served upon me until O'Clock to-day.
MR.. DEPEw INCREDULoUs.
81 did not put much faith in the story,
but at l2:45 O'Clock to-day | was served.
Judge Kennedy, of Syracuse, is a good
lawyer and an able Judge, and / think
be did not know the purpose his order
was used for. A curious anomaly of the
situation is that OF the West Shore Com
pany stockholders. Out OF $4,000, 600,
S49,5O4,OOO have assented to the lease up
till tonight. II this lease shall fail these
interests will be sent back into hopeless
insolvency. l mean the $4,000 900 repre-
sented in Drexel, Morgan q Co. certifi-
Gates, and the creditors OF the West Shore,
TO whom it owes $10,000,0O0, would nearly
all become bankrupt II the road stopped
running.
NOTHING TO GAIN.
''These persons who bring this suit, II
they prosecute it vigorously, will find
that it will cost the whole amount of the
stock they hold and which has already
deprecated, and the rest of the stock Of
the New York Central has
gone down $4,0O0,000 for alleged
purposes of protection, 30 taat
this insignificant sum, giving security in
$3.50, has inflicted this heavy damage.
There is no injunction against the sale Of
the West Shore Company, but only
against the New York Central buy
ing the West Shore. This does not re-
strain any person from buying that road
and dare not restrain Mr.. Vanderbilt
from purchasing 1t should he 80 elect"