New-York tribune., 1885-07-22
THE TELEGRAPH MUDDLE.
MANY opposlNG COUNSEL IN COURT.


.r,urLYIxG NEUTRALITY-SUSPICIOUS. RKsERVED-
c. LIONEL INGERscLL's REMARKS.
The numerous lawyers representing the IN
serests Of the parties to the suits involving inc
:, an. BANKERS and Merchants Telegraph Company ap-
,aar.d before Justice Donohue in Supreme court
chambers Yesterday Among them were Colonel hooer'
a Ingersoll, who appeared Tor Euwar" "
stokes the holder OF majority Oh 'no TO
eeiyor's certificates; W. g. Wilson, TOT zen.
ersl Harand receiver OF the American nsP.
Telesraph Company Joseph S. Auerbach and Miliara
powers nm behaf of the latter as representative OF
certain bondhoders in Chicago Herbert B. Turner anu
David Mcclure for the Farmers Loan and Trust Co'n
rany trustees the bondhoders OF the BANKERS anu
Merchants Telegraph Company; A. j. simpson ""u
Joseph Fettretch. for Newcomb and Smith, receivers VI
certain Western lines Of telegraph which the BANKERS
r Teecra ph Company undertook to build for
the American Rapid Telegraph Company but failed; Ed
ar Iauerbsch for certain holders of receivers certn
eates; Henry j. Schenck for General Farnswortn, TO-
cciver Of the Bankers and Merchants Telegraph Oom'
many Charles NJ. Da Costa, for the bondhoiders co
i1ittce on reorganization James E. Chandler ana
Charles F. Perkins, for the American Rapid Telegraph
Company and A. ]. vandcrpoel for the Western Union
Telegraph Company.
Mr. Simpson first addressed the Court In oenau VI
motion for stay proceedings in order that an spp
cation might be made to Judge shpman In the ohi'ou
Circuit Court at Hartford for order drectng
that bond of indemnity be given to Newcomb and
Smith or that they relieved from their responsibility
as receivers He said that although another receiver
had been appointed In this State they were sti aoo
for the property Of the Bankers and Merchants ieo
graph Company in Maryland, Pennsylvania and ohio'
Henry j. Schenck supported the application on De-
half of General Farnsworth, saying that
he had been informed since Judge snip
mans decision that he only the receiver OF pro-
party in this State and other States in which no other
wSsrs and Smith were receivers took the
property only by their courtesy. mistake naa oeeh
Justice Donohue-whos the some one Better nix
to have authority to appear for M nad
signed farreachns stipulation ahser ~
sSoo sSS Of or 'Ssss soSe ns: Snp%'
cannot comply with that order. continued Mr. schenck
because the property Is not now IN our possession;
iaportant reason is that the property. We
are placed very embarrassing position AZ we are
ape we are here to ask that your order be
so modified that can present the matter 10 Judge
MI Wilson said that the Western lines built for
the American Rapid Company by the Bankers ana
Tarnsworh was in possession and Nswcomb and smith
he s s nss 10 the by
Rapid Company TO which they belonged: lar uort
ford an order had been made turning over certain
Western and that he had since found out that these
nany and the American Rapid claimed that 1t was done
Under contract for the latter company The Bankers
win & Miller. and in an action to establish lien
$4,000 had been found to be due them Newc9mo 20
sued certincates for $i3OOOo. These certificates and
dmenssa I0G work sSse were ws. ms %
Chicago" continued Colonel Ingersoi 49,. II did
sion Of the Bankers Merchants and in the legal
control OF Newcomb and Smith. When heard this tel;
egraphed to Judge ShipmaD asking him when he would
hear argument motion TO modify the order and ne
has fixed tomorrow at p M informed tne a az
not want Judge shipmans order complied with while the
motion for It's modification was pending w wooI o
benefit solely. We want the Western Union Company to
distinctly understand that We Will take no advantage Oh
sThs whole proceeding" said Justice Donohue. so
far the foreclosure concerned seems TO nave been
conducted in defiance of ordinary rules"
The decision on this motion was reserved ana tne case
Company was disposed OF in the same way without
fhe Court next considered the motion made
on behalf Of 24O Western bondholders to open pen
ine oSaueS by s fSr@ep Loan and trust
Company trustee and for the removal OF that com
& sy as lr0 on the the BanEsr. and Merchants to Mr. Powers
trust company favorable to the bondhoder: should
farmers M Loan and Trust Company wa: acting IN the
interest q holders rSw,rS Of sSse. tns
holder Of majority. of these. was engaged
United s 10 ss w M Saa hs
world. stokes had secured lease of No Is1 broadway
Herbert b Turner repeed the charges agsnst the
Trust Company, saying that so per cent of the bond
holders were satisfied with while gentleman from Chi
cago with bonds asked that the decres be sea side and
thai the essential 10 the bcndhoders be stepped
He SAID that the Trust Company had not been consulted
in the appointment OF receivers and had opposed their
appointment; and appealed from IL ana was not aeuhs
with the holders Of certificates
Mrssrs. Mcclure, Da Costa and Shenck supported Mr.
Turner'S views aud Messrs Aucrbach and Powers COM
bated them.
Mr. Incersoll denied that there was any conspiracy
holders of certificates and the Trust Com
pauy. admit, cheerfully." he said that when
court decides that money is needed corporation and
fnrVa rd and loans lc
he is regarded AS public enemy and men come
into court with gleafess effrontery, denouncc
him as an unauthorized scOundrel"
Justice Donohue said that since last September
the Court trying impress counsel that
the property should be sold All there is In this case,
said simply the question OF the regularity OF the
decree and of what be sold under it, He reserved
his decision. -
An application made by Mr. Mcclure for judgment by
default behalf of the Farmers Loan aud Trust Com
pany In tho action brought against the Bankers and
Merchants Telegraph Company for foreclosure OF the
divisional mortgage for $29J,000, was opposed by Mr.
who claimed that the bondheders represented
by him and Mr. Powers had right to be heard. Tho
Justice took the papers.