The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1890-11-04
The Sugar Trust Needs 4 Receiver.

NEW York, Nov. 3.-Jadge Pratt ha,
handed down decision in the Sugar trus
case, in which he says that a receiver
! snip Is necessary and that two re.
celves should be appointed. The receivers
Will take possession OF all properties anf
moneys OF the trust. 1t is understood that
no person identified directly with the trus,
VIII be appointed. The dge gives r.
parties to the suit until Thursday to apret
upon POI, Two persons to disappointed receivers
Inc Brooklyn court rendered a
decision in the cases invoIved
known as Cameron against Havemever
ana HaVemeyer against the Brook.
iyn Sugar Refinery company. The iudpe
Justlhes the original Injunction and MAN nj
reorganization, but seys it had been SIM
posed by him that the publication of the
pan was under the consent Of both parties.
Ii, the plaintiffs. say in their own bill. the
original trust agreement be void. certainly
they ought not to attempt to nerforn the
duties which its language imposes mon
Cneln, because such acts would constitute
luf1ner offenses against the law, which
would subject the corporations COMPOSING
Ine trust to forfeiture of their chartars
Inc court holds that the original stock
noIders OF the corporation having de-
nVerea their certificates TO the
trustees with full authority to issue
Crus cerIlilcates representing the undivid
eo interests the original stockholders are
estopped from questioning the title Of n uro
chasers and holders OF certificates who a.
rive Title from the stockholders. but if il
not necessary to determine where the legal
Iitle is, because the trustees concede in
thelf Dill that they hold it for the benefit of
certificate holders. The defendants there-
lore, are IN possession of property belong-
ing equltably to others, which came into
Cileif hands under an agreement, void as to
the main purpose for which it was made
ana Whlcn they cannot legally use for the
purposes Tor which it wa placed in their
hands. They are utterly powerless IN con
Vey ana give good title or distribute il tn
the rlghtful owners. The object of which
having tailed, each certificate holder has q
flght TO der and that the affairs of the
trust be wound up and he have his share of
the Joint property. His honor knows no wav
IN Wnlch this can be accomplished excent
py Tue unanimous consent of the certificate
holders or application to the courts In
the meantime the disposition of tho nrn
perty is vital question. Shall il, he ns..d
SO as TO endanger the corporations o1 he
taken by the court and held intact for all
those interested Shall this vast amount
OF property be left in the hands of a hoard
actng without defined duties or restriction
without legal authority and subject tn oniy
Inc WA. or discretion of a majority of it's
mem bers! 1t is conceded at thesssme time
tnab the court must appoint some person
TO dispose of the property and divide the
proceeds. The certificate holders asl, an
settlement of the trust. Trustees
claim proper time has not arrived
as there is plan of re organization. The
answer is that receiver will not
interfere with proper plan of organiza.
ton Indeed, in case satisfactory scheme
Oh reorganization is proposed his honor saw
no reason why the certificate holders com
posing it may not have their share Turned
over to them, always leaving enonoh
property IN the hands Of the receiver 70
meet the demands of creditors and certifi.
.abe holders rs who do not come into the new
'cheme. The court continues ssBoth mar
lies may submit nominations for appoint
nent as receivers with the proposed orders
ana decree on or before Thursday next
formations to be left with the clerk. The
AMOUNT OF the bonds will be fixed at tho
line OF naming the receivers ~