New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-12-26
INCOME MORTGAGE RIGHTS.
LAMo1LE VALLEY EXTENSION BONDS.

INJUNCTION AGAINST PAYMENTS BY TIE NEW
yopK crSrRAI-DEoisiov or JUSTICE TAPPAN.
OcDEyspUEG, n. y, Dec. % (SpecioD.-ln
The supreme Court special to-day, Justice Iappan
handed down a decision denying the motion made IN Do
half OF Chauncey NJ Depew and William X NauaeioiI''
Rs trustees the b0ndholers OF the LamoIle NaleS
Extension Railroad Company aud also ON behaii OF o
SewYork Central Railroad Company as holder OF Such
bonds to dissolve the injunction obtained by hoDer' L.
Day and Others holders OF tie income mortgage oous
of the Ogdensburg and Lake Champlain Ralroau Co'N
pany. by which the last named company Is pfohipeu
from making further payments on the Doh's Oh to 81"
mobile Valley Extension Railroad Company IheIe
were 81 900 900 OF income mortgage bonds issued by
the Ogdenburg and Lake Champlain Railroad Company
IN 1850. the principal Of which was secured by
mortgage. while the interest was secured only
by a pledge Of the net income OF the
road for each coupon period of one year The company
in 1882 desired TO establish connection with the
Iamole Valley and Portland and Ogdens0urg railroads
This required the construction OF new bridge across
Lake Champlatn and Mississquoi-Bay and twelve miles
OF railroad from ROuses Point to SwantOn. Inc
IamoIe Valley Extension Railroad organized uhdef
the laws OF Vermont build this connection "lHiam
II. Vanderbilt and George b. Phelps OF water
town. agreed TO furnish S3oO,OOO TO 40 'h''
work. for which the Lamoie valley iAtehs'oH
Railroad Company agreed TO issue its bonds. Inc
OgdensbuTg and Lake Champain Railroad Company
agreed to lease road and bridge in perpctuty
when built and to guarantee the payment OF the
S35OO0O of bonds TO operate the new road pay lhe
interest the bonds each year. and $"OoO
annually to sinking fund to povide for the
payment of the principal in fifty years. .Chauncey
NJ Depew and william II. Vanderbilt were made
trustees under the Lamo1e Valley Extension Railroad
Companys mortgage. whereby the payment Of the
bonds was secured o! the new roat ana bridge me
new road bridge were built aocordhgiy ana mo
$3.50 900 OF bonds Of the LanOle valley Extension
Railroad Company guaranteed 10y the OgleuSOurg ana
Lake Champlain Railroad Company were Ssned 10 an
derbit ana Phelps Vanderbilt transerreg MS |2;OVo
pauy The performance OF the contract diverted the net
earnings the Ogdensbarg and Lake ChaGpilln Ran
road Company. which tue holders of it, income mort
gage bonds claimed shonld be applied 10 pay lhtlf
coupons In December, 1884, K. L. Day * Co.. BANKERS,
OF Boston OhOd large amount OF the ponds, Drought
through James & HERMANN attorneys OF ms ely an
action behalf OF the income DOndhOderS 10 tiJoh
the Ogdensburg aud Lake Champlan Railroad company
Valley contrlcts temporary injunction was oht aimed
In June 1855, motion was N DO TO dissolve The H.
ipuctlon which was argued in July.
he decision just handed down susains the lnuhcloh
The case Is one OF great interest because II .acs oro
those of subsequent acorswith the comp ny issuing
such bonus The plintis were represented by Colonel
Edward C. James Of New oIk aud also OF this city; the
Ogdensburg aud Lake Champlain Company by LOUIS
Railroad Company aud Depew and vanderbilt as
trustees by Edward Harris. OF Rochester and Malin
GrlIhn' Oh WATERFOWL
When this dispatch was shown to Mr. Dopew be said
that the facts were correctly stated but that the de-
eison the question OF vacating tie Injunction ala
not finally determine the merits OF the case Whether
or not the guarantee roads OF the Lam0le Valley
Road by the Ogdensburg and Lake CAampain is bnid-
ing as against the holders Of the Osden,burs income M
come bonds will settled a separate suit Mr. Dcpew
gave the following history Of the Circumstances out OF
which the present suit grew:
1.-The Ogdensburg and Lake Champlan Railroad was
ono OF the connections OF the Ntw-Nork Cen
tral, and doing good business. IL was
Thought, however, that the business o. the road
might he increased if IN way IL could get an en-
trance into Northern NcW-Enclaud. The Grand Trunk
al that mOuOpoized all the traffic OF this section II
the New-YOrk Central could form connection Wits
Northern Ncw-Encland through the OSdensburS aud
Lake Champaln. of this Traffic might be obtained
for Central route. IL was proposed 10 make ms con
neeon by building bridge aud about fourtecen miles
of road which would unite the OSdcnSuuIg road with
the ST. Johnsbutg road. The bridge across Hayl
gable running out OF Lake Chainp n. ana cJnSe
ouenty could DE built without the consent OF he
Federal Government THIS consent WAS Obtained, /
and bonds the amount OF $4,000 were issued !
the construction OF the road anu bridge The elrns
the OCdensburg road pledged TO pay the interest
these bonds Mr.. Vanderbilt took one half OF tneln
aud Phelps, the contractor, took the other hat
When the Crank Trnnk and Vermont Central people /
realized that their monopoly was IN danger they quietly
work aud boa Int controlling interest Do the
OgdeEsburg and Lake Ohampaln kanrOad pat IN Their
management and ceased 10 operate the LamoAie
Valley extension Then through the agency q! some OF
their friends who held the Ogdcnsburg income bonds
SUIT to be brought against themselves WIN
the object declaring the guarantee 81 their pcoecc
sOrs the bonds OF the branch road void IL was a -
point the Newly Central one OF the hOhuhOlatr-
ana the trustees OF The bOndhOdeiS. stepped IA me
injunction has been declared permanent bat The slJ Us
stil 10 be tried