St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-06-24
AN IMPORTANT CASE.
Ralph Bagaleys Suit Against W. <. Van
derbilt and South Pennsylvania
Syndicate Members.
The Suit Brought to Restrain the Appoint
ment Of Receiver
Harris Party.
What Result the Completion OF the
Minnesota d Northwestern Will
Have--Manitoba.
The Milwaukee Consents to Postpone
Its Withdrawal from the Col
OradO Pool.
South Pennsylvania Syndicate.

bOutn FennSFlVam1a Syn0lcatc'
NEW YORK, June 23.-Mr. Ralph Baga-
ley's suit against William K. Vanderbilt
and other members of the South Penn
sylvania Syndicate, which is brought to
break up that syndicate. and comes before
the court for an injunction to restrain the
committee from taking any further action
in the matter and for the appointment OF a
receiver to wind up the affairs of the syndi-
cate, was resumed to-day in the superior
court, special term, before Chief Justice
Sedgewick. sAn additional affidavit by Mr..
Bagaley was presented, in which he stated
he never consented to any delay on the part
of the South Pennsylvania Railroad COM
pany in executing its mortgage for $40, 000,-
600 or in issuing it's stocks and bonds on ac-
count Of contemplated change i'll its route
OF for any other cause. He declared
he never consented that the committee
should advance moneys of the subscribers
to the construction company without re-
ceiving all stocks and bonds therefor, SIM
UNANIMOUSLY with such advances as were re-
Quired by the provisions of the syndicate
agreement, and that he did know prior to
the beginning Of this action that such adj
vances had been made upon the notes of the
construction company for stocks and bonds
when issued OF otherwise than precisely as
required by the terms of the agreement
Col. Edward G. James opened the argu-
ment to-day in support of the motion.
After he had finished Mr.. Bangs COM
menced his arguments for the defendants.
Mr.. Bangs argued an injunction should not
be granted, cOntending that no charge of
wrongdOing was made against the defend
ants. He said there was nothing
70 oh i,,%a LODI 10 IN
Bagaley OF his money, or defraud him
in any way. He also claimed the general
rule was that where one wrongdoer con-
court would leave them exactly where they
stood. The counsel characterized as absurd
the contention of Mr.. Bagaley that he had
not authorized the organization of the con-
struction company and declared such con-
tract was exactly the thing contemplated by
the syndicate agreement. He asserted that
never before did person stand in such a
ridiculous attitude before court of justice,
for he further wanted the contract rescinded
or wanted to compel the committee to give
him the bonds. which he says are illegal.
Ii this were an illegal agreement the plain
tiff could not enforce it. The prayer Of his
original complaints shows he had we'll
defined objective point The constitutional
question was purely an after thought.
s'We have right to know" said the
counsel, whether this commission has a
right to proceed under this syndicate agree
ment." eff that be so, said the Judge, lit
is only because the plaintiff can be injured
in respect to some legal or equitable rights
by the syndicate" Col. James, who made
the closing remarks, argued that the at
tempt of the members of the syndicate
to put out $40, 10000 900 of stock for $40,
900, 900 was fraud upon the
constitution and upon the people of the
state of Pennsylvania, and was absolutely
void. He urged that confiding people
should not be made dupes of those who pro-
mote enthisis, based upon issues of cor
porate securities for fictitious sums, and
that the public policy required that there
should be received value upon every dol
lar of capital upon which it assumed
to do business and every dollar of bonds
which it issued. 1t was claimed that the
stocks, bonds and mortgages were all
tainted with illegality and they were there
fore worthless and in conclusion he charged
that the construction contract was invalid
upon its face. Counsel was given permission
to hand in printed briefs and the court re-
served decision.