New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-12
THE COURTS.
ANOTHER BLOW AT THE SUGAR TRUST
JUDGE oBMEN CONTINUES THE INJUNCTION
HIS OPINION.

JUDGE O'BRIEN CONTINUES THE INJUNOIloN
HIS OPINION.
The Sugar Trust received another blow yesterday
from Judge O'Brien I'm the supreme Court lie LANDED
down an opinion continuing the temporary injunction
which secured ~ Henry Gray, "a receiver
restraining the officers of the North olIiver sugar Ike
filming Company from Transferring the refinery proper
ty other assets. or from paying out moneys eA'
ccpt as were needed in the ordinary transaction
oi their business The officers have leave, however 10
apply from time TO time for the a}mcnt OF SUCH
dividends to the certificate holders as may be lusllheo
by the profits Of the business After stating tle
present condition OF the case Judge O'Bren com
upon the right Of the to bring the suit
for the dissolution of the North River sugar Refining
Company, the injunction in question being TO prevent
any disposition Of the property until the final decision
il made in that suit. The opinion then continues;
The judgment appointing lam dhe receiver, directs
that he take possession OF ana 7cleNtlate the prop
crty Of the North River Company, and distribute IT
among stockholders or persons lawfully ehttIeu
thereto. lpOn an accounting If decrccd and In reach
ing conclusion to the persons lawfully entitled 70
the property, difficult aud vcNcd questions VIII arise
Just what the plaintin should receive, aud among
"hom ne WI distribute IN view oi tle h3te ,
certificate holders of the Board ana Tie stockholders
OF the various corporations. may involve marshalIng
OF the entire asoete Of TIE copirln"rSp ana would
seemingly demand that uhtI III" uc'l>loh OF ths 'd'e
the property far as consistent with the ordinary
transaction Of the business 81 the corporations should
remain In it, present condition. ana WITHIN the lurS
dirtOn Of this court To be amenable 10 the
final Judgment. The filing Of the lis pcndcns may not
secure TIN, result. II at best but affects the real
estate and II such passd to the Board OF Trustees
remained the respective corporations 1t may not
be affected by such fling. However, the lis pendens
In no way would prevent the Board If 50 disposed,
from transferring all the stock OF the various corpora
ton, In the cash assets which ii IS claimed they have
If tho Ii, pcnden, prevents the transfer no additional
burden is placed op defendants by an injunction.
Defendants dsclaim any intention Of Transferring
their property to the Connecticut corporation. and the
Of the court cannot in this rcEam work any haru-
ship. While Therefore ! am OF the opinion that tie
Injunction should be continued Il should not be -
continued 10 njurc cmbaIrass the defendants
I'm the prosecution Of their business until such time
the C)t Of Appeals shall have finally passed upon
the main question involving the judgment OF forfeiture
TIL then they should b. permitted 10 pursue their
ba~iuce, unuolc,tcd. 10 pay dvIdnds ont Of their
earnings and 20 make such pay mcnts as ,e required
I'm the ordinary transaction OF their afiiE', being
prevented only from transferring or dspoNing Of the
corpus asset, themselves. At the same time 1t
being cla ned that under the g,c Of dividend, large
sum, cash other than profits Of the business have
been and coud be paid ont 10 the dctrmcn and depc-
ton Of the capital corpus Of the alleged c0paTner-
Ship the should exercise some supervision 10
tho end that they should be- prevented from doing
Indirectly what the court would enjOn them from
/ doing directly