New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-10-04
RAILROAD INTERESTS.
DEBTS OF THE WEST SHORE.
A NOVEL QUESTION As TO THEIR PAYMENr-DE-
MANDs OF CREDITORS.

A NOVEL QUESTION ~ TO THEIR PAYMENI-DE-
MANDs OF CREDITORS.
NEwEt,RG, Oct. (SpecidD.-On the deter
minaton of motion made here to-day Dciore JUSTICE
Bro wn In the Supreme Court, will depend the payment
or non payment of about 100000 TO the supplying
creditors Of tho NewYork Yves. Shore and Buffalo Ran
way Company. The claims involved are those tha'
accrued between March 1884 and June 7, 1884. when
the receivers were appointed. At the time OF their
appointment an order was made by Justice Brown
which read that at such times as seemed best TO them the
receivers might pay these debts. But they were not
peremptoiy ordered to do So The chambers OF Jus
tice Brown we're crowded with creditors and their
attorneys when the motion on for hearing this
afternoon Ex-Judge Uoraco Russell, a. one OF the
REVIEWERS said that they had, under the authority OF the
original order paid part OF these claims where 1t seemed
absolutely necessary TO do so to sustain the Working
order OF the railroad The receivers now came to the
court for Instructions TO whether they should pay
them ALL When the receivers we're appointed the rail-
roaA conn any desired that the order should direct The
novment OF all debts supplies for six months prior
thereto; but the United states Trust Company the
trustee for the bondhoders, objected ana compromise
was effected by which the order read that the receivers
may pay those for March l, 1884 The receivers had
purpose to pay all these debts but did not have the
means do soand the question was whether they soud
pay them by borrowing money.
Mr. stewart on behalf OF the Trust Company OBJ
i,cted TO such payment The sums already paid hal
becn di-urseL the benefit OF the bOudhOlders because
surh payments had enabled the receivers to continue
tbo oneraon Of the road. and 20 were Justified But
Tho same could Jt be SAID Of any rents To be maze
uov II would simply taking out OF the body or the
nortgaCed property that which rightfuIy belonged 10
ihe unrtgagre. Mr.. Cromwell speaking for some or
he creditors Interested said that the qt cstOu was
novel one i'm this although II had frequently come
nm In the Vest where the foreclosure Of MORTGAGES upon
railroads was more The principle was iOunie d
ia tu.tice and equity. The goods furnished were really
Tor the benefit NJ the mortgage because II got the Den
cut of them In the increased values OF the railroad 800
sides the company owe duty To the public ~ 10 Tue
maintenance Of s road. Tho creditors FURNISHED the
-upplc, enable the company To perform thht uuty
r shepherd appearing for other creditors contended
that this was public question flOHc pOhcy uo-
tnnnded that when receivers we're appointed they
bould be allowed continue the operation OF the raft
rond wi bout being harrassed and mpeed by multiple
nv OF suits such would have fallen upon these re-
evers n the creditors had not supposed that they were
creditor, rolled upon that protection. stood stlll and
eagce and therefore n should pay for IT, II dineent
rnc should be applied, creditors OF railroads In the
future that became nsOvcnt would not be 30 consdere
and the results might be disasrCus He' eFa! ciacT
lawyers representing creditors were heard Justice
Brown then listened 10 the replies Of Mr. stewart ana
ex Judge Green. Decision was reserved. Justice
brown announced that all creditors on the lists OF the
receivers would 10 protected In any decision at was
rendered whether they appeared by attorney on the
motion or Many appearances were entered AZ the
question novel ana important one an appeal VIII
doubtless be taken whatever decision Justice Brown
make.