The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-06-29
900 BONDS INFATUATED.
Judge GreahRm's Opinion of One of r. C.
IIoIIins - Co.'S Operations.

Judge Greaham's Opinion of One OF r. c.
IIoIIins - Co.'S Operations.
A copy Of Judge Greshnm's opinion In the
suit brought by the American Loan and Trust
Company Of this city against the st. Louis
and Chicago Railroad Company and others has
reached this city. 1t confirms tho flndinG OF
Mas or Commissioner Bluford Wilson that 2Oo
bond OF the ra!rond, numbered l4Ol to LOCO
inclusive. are invalid. This concerns one Of the
most important lilgntions in which Frank c.
llollns & Co. have been involved. llolins was
the holder OF several important offices in the
railroad company, and his firm acted as fiscal
agents for 1t. Bonds wcre to be issued at a
stated amount to ihe mile OF completed road
There was nm ovorissuo, but when Interest,"
WAS dcfaultcd aud foreclosure followed Hol-
Inns continued TO dispose Of bonds, and lltiga-
ton centred not so much on overssue rs upon
tho validity OF thu "hieh.nvmber" bonds
dealt in after suits were begun. judge
Greshgms opinion says:
The P es 70 va. The 5 riga 9.
iater AMI vent into possession o: he pSopeity lie
iii 10 f@reSlo.e he coHs5iidsted oriraso Was lied on
dated ne reH conr"yg5sy si"r" the Master , op
M to iIS ineusVc Tie cvi'ence n lie record
clearly shows that these bonds were al IN The hands q
company when the two suits were commenced aud
7, Z ironns OF Honns A Co wa Vice. President and
re;r fSSSAny va % ana p IN %n O.
who WINS i'r. Il lent absolutely controlled tho arton of
the cprpOrAlI,h. one hundred aud twenty OF the
bonds numbered a,Ove LOO were presented by Mrs.
CeJne lloIins wife OF r. G. llonS and fourteen ~
them presented by T. g. HO Inns 90 on the evI-
dcncc before thu Naster he justnol in treating r.
The opinion thcn states tina these mon bought
bonds ct the high numbers rom F., g.. hoIllne:
Howard Taylor 8: Xabrlskie 10: W. T. Wads-
worth, 10: W. L. Dixon. 10: L. Jacques. ~.
And the holders ot the remaining eleven bends claim
to have bought them from Others VINO hau pufchateu
from 10 ina SOt more than ~ cents on the dollar WAS
paid OF these bonIH and some OF thoin were
purchased from llOins at than thirty centa oil the
dollar while only months before the hill was filed
snes had been made at ~ and 70 cents on tue dollar
nier clause in the mortgage the b"nis had all DO
come before suit was brought at which time
! they all belonged 10 the railway company
some Of the present holders purchased even
decree force osnE tho hrst mortgage had been
dispose Of these bonds Rd even VI bonds thus secured
by NOR gage he bought commercial paper after
suit to Tor close has lesn commenced and after the
court has possession OF the inortGaged property
by tho facts in the record WIRE enhc!ent 70
pul purchasers upon inquiry and inquiry would have
revealed the tact that u Inns had no authority 10 DIS
poso the bonds The holders of theHe go bond are not
entitled share distribution OF the fund raised
the sale Of the mortgaRed property and decree
will be entered uuon that basis W. Y. GRESHAM
Granvil o T. Halves. for the American Loan
and Trust Company. will move for decree In
accordance with the opinion. MIR. taylor, VINO
was counsel for Mra. Hollins when the matter
was up before Master Wilson, snys that Holling
Will probably appeal the case 10 the United
/ States Supreme Court.