New-York tribune., 1885-07-22
THE FIGHT AGAINST aECEIVER DICK.
is HIS RoADAN OHIO OR PENNSYLVANIA CORPo.
TONI

is HIS ROADAN OHIO OR A PENNSYLVANIA C0RPo-
TIoNi
tBr TELEGRAPH TRrBUNR1
PITTsBURG July 21.-The application OF the
New-York, Pennsylvania and Ohio Railroad Company
remand its case to the United States Circuit Court
and to dissolve the appointment Of Samuel b. Dick as
receiver which was made by Judge Church, OF tho
Crawford County Court was before Judges Acheson
and McKennan at Erie to-day. NJ Heydrick, In OPEN
ing for the plaintiffs said The principal question to
bc considered is whether the railroad company, defend
ant. Is 10 be regarded as q Pennsylvania or an ONO
corporation. The facts are undspued that prior TO
1880 there were two distinct corporations, one Or
ganzed and existing under the laws Of Pennsylva
and the other under the laws OF Ohio
These corporations were consolidated into one
The plaintiffs counsel also contend that the defendants
too late In making their application for removal for
the reason that they treated the state Court Win con-
tempt, deed process and suffered Judgment to 20
against them by default and cannot now remove the
cause, II they ever had the right of removal.
Mr.. Mcfarland argued that the action was fraudulent
and marauding enterprise against the New-York,
Pennsylvania and Ohio Railroad. In 1850 McHenry
assumed entire charge OF the road which was under
three corporate organizations, the Atlantic and Great
Western OF Ohio the Atlantic and Great Western Of
Pennsylvania and the Atlantic and Great western OF
NewYork. Each executed mortgages to secure the
issue OF bonds. all of which and the capital
stock McIIenry secured. In 1868 consolida-
tion was made and mortgage made to
the Pennsylvania trustee The bonds secured by
mortgage and negotiated by McfIenry In Europe The
main line, from Salamanca 10 DAYTON, was opened In
1854 and the whole ne In 1855. Extravagant reports
made Of the prospects OF the road which mad no
foundation, the gross earnings to December, 1864
S3235 i91 H. In 1885, failing to earn expenses
the road turned 0yer TO General Potter, the
receiver, who found indebtedness OF @2OOOooO Inc
lease TO Erie la 1868 and the recevershps OF Could
Dongherty and Hitchcock only added to the debt NC
Henry In 1870 carried out scheme OF reorganization
which derauded the European stockholders OF millions
In 1872 tho road again passed into tho hands OF u
receiver. and In 1873 MciIenrys methods were exposed
to the English and he declared He has ell
tered sus iD English and American courts put
failed in every instance until the present -Four appca-
tions made In the Cleveland courts but never
brought trial. and the PLAINTIFF leave those and
audaciousy apply here Mr. Mcfarland said that Judge
Churchs action caused wide pal alarm among tue
English Stockholders aud he urged settlement OF the
case at once
Mr. Boes said that the allegations not true. that
the road had been conisoated by four
themselves Reorganization Trustees. The court had
enIoned these from paying out any more money on the
had been deod Oh the ground that the ROAD was
organization of the state OF ONO He also urged
speedy trial OF the AfLor consultation, lhuisu
of next week was 1xcd.