New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-06-21
MANY MILLIONS INVOLVED.
THE SOUTH Pennsylvania SYNDICATE.
SHALL RECEIVER DE APPOINTED f-MR. BAGA-
LEY's ALLEGATIONS.

SHALL RECEIVER BE APPOINTED f-MR. BAGA-
LEY's ALLEGATIONS.
The question whether receiver of the effects
of tine South Pennsy Railroad Syndicate shall be
appointed temporarily and whether 1t shall be enjoned
from proceeding further under contracts for the con-
structon Of the road while the suit is pending brought
TO determine the rights OF the parties in the action Of
Ralph Bagaley against william H. Vanderbilt,
the American Construction Company the South Penn
sylvania Railroad Company and Others occupied the
attention Of Chief Judge sedgwck In the Superior
Court, Special Term, yesterday. Colonel Edward c.
James, James b. Dill and Louis A. Chandler appeared
for the plaintiff and Francis n. Bangs. Francis l..
stetson and John d. Johnson, OF Philadelphia, for the
defendants
Mr.. Dill presented the points OF the
complaint to the Court, stating that
In May. lss3 Mr. Bagley together with thirty others,
among whom were william II. and William X. Wander
blt. Andrew Carnegie stephen y. Elkns and James b.
Colgate, entered into written contract whereby they
subscribed 900 for the pGrpose of acquiring the
property OF the South Pennsylvania Railroad Company
with view to completing that road from the
east bank OF the Susquehanna River to the
west bank OF the Youghogheny River William X
Vanderbilt H. Mex Twombley Franklin b. Gowen,
David Hosetter and Henry +. Dmock appointed a
committee OF the subscribers and they made four calls
OF per each upon the amount OF the subscription
Last December the members OF the syndicate except
Mr. Bagaley consented to modification OF the
agreement so that tho subscribers were not TO
receive their share OF the $20.O00,000 OF bonds
which the railroad company was TO issue until 30 per
cent instead Of 20 cent of their subscription had been
paid. The committee made fifth call upon the sub
scribers for per cent OF their subscriptions and all
made payment except Mr.. Bagaley. The committee
made n contract with the American Construction COn
pany to build the road upon basis OF $2OOOOOOO OF
stock and @2O.OOOOOO Of bonds. The committee were
10 receive $1,000 each OF bonds and stock for
every $1,000 OF money advanced to the
that this contract In contravenon OF the constitution
ana laws of syvana, because all OF the T4OOOOOOO
received by the construction company In excess OF
si9oOOO0O Is fictitious increase OF stock ana ndept-
charged that The members ~ the construction company
members Of the syudicate that the construction
company had 10 assets; that It's capital had not bon
paid ~ ana that It's corporaors not responsible men
Mr StctsOn placed before the Court the answer OF the
defendants They admit the facts set forth IN the com
plant In regard To- the organization OF the syndicate ana
pay but their denies that there has been any
violation OF the contract either thcpart oi the Amer
lean Construction Company or OF the other defendants
or that IL was made III violation OF
10 also denies that all the money and property To bo re-
ceiyed ny the railroad company under the contract VIII
stock In Of that sum To be issued by tho construc
iOn company IL fictitious Increase.
AnidaVits by Francis T.. StetsOn, Frederick J. GrOe-
vct secretary OF the south Pcnnsy vanl
Kairuad Company Robert H. Sayre, iis president;
IT, Kent president OF the American Construction
Company aud by william X. Vanderbilt, Hamilton Mch.
Twomblcy Henry + DmOck cOmjOiutly rs members
~ the Committee Subscribers to the Syndicate were
presented which the Allegations OF The answer set
forth greater length. In tho last affidavit II Is declared
that the resolutions making the NTH cah Tor per
scndef and call other than the drst four has been
made upon the plaintiff though various sums have been
received from subscribers since January 1850 as vol
uutary contribution"
Colonel James BEGAN his argument In behalf ol the
plaintiff before he had proceeded far the case was
adjourned until next Tuesday at 1880 a. in