New-York tribune., 1886-03-31
OPPOSING REORGANIZATION.
DISSATISFIED HOLDERS OF SECURITIES
ALLEGATIONS OF JUNIOR INTERESTS or THE EAST

ALLEGATIONS OF JUNIOR INTERESTS or THE EAST
TENNEssEr, VIRGINIA AID GEORGIA.
A suit has been begun in the Supreme Court
Chambers, by George X. and william H. NJ sistare aud
Harold Clemens against the reorganizatlon c0mhltee
OF the East Tennessee, Virginia and Georga Railroad
Company the Central Trust Company trustee under all
the mortgages company, and Others. Judge Dono
hue yesterday granted order summoning the DEFEND
ants to give testimony before him on Aprll 90 thas
the plaintiffs frame their complaint The SUN ~
supported by the committee Of income bondhoIiers anu
stockholders opposed to the plan OF reorg"nI
ton now being pushed by the present mahagenehI
William H. Nes Is the attorney for the plaintiffs. Mr.
Niles alleges and william II. NJ sistare, who furnished
the AFFIDAVIT which the order Of EXAMINATION "'
granted, depOses. that the members OF the Wrkho"h
Thomasseney syndicate fraudulenty Inflated tho
Capitalization OF the bonds forming the East
Tennessee, Virginia and Georgia reOrganlIeu SN
TEN from $75OOOO0 bonds and S5o10,OOo
stock to $22.OOO,0O0 consolidated bonds and
$4,000 900 income bonds and SI4.000O00 stock that
by false reports thsy unloaded on the pnDhc ihe'o
securities which had been distributed among tben-
selves aDd then entered upon scheme for ~recsng tne
the managers of the company ssidef improper claims
upon the company and also TOOK from the Ien o' mo
tempatrd to bs covered ny tho original deed Tho suit
plaintiffs Ia compel the defendants 20 account
fer all received in the several aeged schen'
frauds" and all bonds Issued for pTetended
services and on illega contracts "hcluded iI" .hs
benefits Of the at the foreclosure safe of the
property leave larger division for the income
stockholders; also the Central Trust Company
removed the ground that has assumed trust. that
are Inconsistent and conflicting In interest 49,,
Mr.. stllman. Of Butler. stiman hubbard; attorii
neys for the reorganization committee .hH We N'nu
Trust Company I. out Of town Mr. Joline OF thrir OF
hce SAID that he knew nohing OF the snte1crpt t" e
ginning Of 1t, but II anv injury was attempted ~ tne
organization plan 20 the income hondhphers te uus1
company would see that IT was frustrated. CALVIN =
Brice said that the suit by dissatisfied stock
holders against the reorganization committee.
az matter or formaly All the securities were issued
at the same time and distributed pro rata II me con
a nod
when their interest was not pad could dictate tue erm'
on which they would permit the other crelois OF ,hP
stockholiers partci pate in the reorganization. Al
Of tho mortgage bondhoders practically had agreed %
the plan and deposited their bonds. Tue slit was de-
signed TO secure reduction OF the assessments Oh tho
income bonds and stock
PUTTING DOWN TRANsCONTINENTAL RATES.
The new cut in passenger rates west of the
Missouri River announced by telegraph IN yesterdays
papers followed by reductions here that put tho
tariff the lowest basis yet reached. The Baltimore
ana ONO corrected the figures on the flaming posters at
IT, Broalway orss to $50 30 for hr.t c@,S cSris ron
here F~anci'cO and TO $50 30 for second 9. -.
Th- by other trunk lines rule from - 10 - %
higher according 10 IN route fteIeu t vi, i,.
tnn- on ruluousy low basis though m. nlon I-'h1
refuses take hrstla's freight below - % per 100
The general passenger agents OF the lines met
~ CummssiOner tlnAs OiCc, Dut trAIsacl'4 VHJ
routine business.
MISCELLANEOUS RAILWAY INTELLIGENCE
PnIL,DELrHI, March 80 lSp,sHl.-DreNc. * Com
pany began today to receive Of the general
mortgage bonds Of the Reading Railroad under the re.
organization plan.
The strike IN the Cear1ed coal ia Que OF great
injury 10 the Pennsylvau.a Railroad Company The loss
OF revenue from that cause serious and Will be likely
10 AFFECT next dividend OF the company. Which -
be declared NAY l. Predictions were freely made be-
fore the that the dividend woud Dee i1 stn's
ana Tie further complication strike IA the Gle rlrA
dspryiug tie road oi %; O.. greatest sources
OF revenue uAGcs the dividend moro prDDaJe
than
wA-ui>Grov, March 80 The House Committee on
Military Affairs to-day agreed report fay0raJy Rep
rcseutaye 81 cnau. bill granting rgnt OF way 10 tue
rchuylk River Last side Railroad Company through
The Arsrnal AMI Nty4l Asylum grounds a: p Il.e q.
n provides entrance FOR tie BAL! more aud ONO iA-
road into Philadelphia.