The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-07-20
LX-JUDGB STEVENS ARGUMENT.

he Declares the Lease to be a Very
Thin Disguise.
Ex-Judge Stevens began his argument
for the State at 10:35 O'Clock. In address
ing the Court he said:-
''Fhis is an application by the Attorney
General for an injunction 60 restrain the
Central Railroad Company. the Port
reading Railroad Company aud the
Philadelphia aud Reading Railroad Com
Tauy from doing or continuing any act
Whatever, under and by virtue of the
terms, covenants and conditions con-
tanned in an alleged lease and tripartite
Port Reading Railroad Com
pany or Philadelphis and Read
ing Railroad Company pretends
to have acquired or be en-
powered to manage and control the cor
porate franchises of the Central Railroad
Company of New Jersey: and further. to
restrain those companies from doing any
acts and making auy arrangements, by
contact or otherwise, having Tor their
object. effect or result the limiting or di-
mlnishing the production of coal or arbi-
trarily to increase the price thereof, or to
prevent competition among them in the
production, transportation and sale of an
ihrac16e coal, or doing any other act or
thing tending to moaopoly in coal, or
arbitrarily to increase the price Of coal to
the Inhabitants of the State of New Jer-
sey.
REAL CONTRACT.
VI will argue this case on the ground
that this was really contract mate and
the lease entered into with that little
insignificant corporation, the Port Read
ing Railroad Company, and have stated,
il that be true. why, then, the directors
of the Central Railroad Company have
been guilty OF a breach of trust; but do
nnf fhATO of Of
trust as that. / do not accuse them OF
putting this vast property of the Central
Railroad Company into the hands of u
little company that is not even yet com.
plated and which never intends to run
passengers over its line. but simply to
carry the coal Of The Philadelphia and
Reading Railroad Company to market.
"This is really in substance list to the
Philadelphia and Reading Railroad COM
paDy. The lease is a thin disguise. The
Port Reading Companyis is one of the cres-
lures and dependencies of the Philadel-
phia and Reading Coal Company It was
promoted in its interests for the purpose
OF securing better facilities for the trans
portation of coal. 1t furnished the funds
TO buy the terminal ends and other
property of the Port Reading Company.
1t furnished all the money to build this
road except what it obtained by the sale
of It's bonds.
PORT BEADING's POSITION
''This Port Reading Company is left to
the MANAGEMENT OF the officers of the
Philadelphia and Reading Railroad Com
pany. The very same officers of the for
mer are corresponding officers of the lat
ter. For instance, tns Treasurer, the
General Manager are the same, aud
whatever is done is done by the
officers of the Philadelphia and Reading
Railroad Company. They do nots even
attempt to disguise the transaction by
appointing u different set of officers.
Stock to the amount OF $40 900 was sub
scribed by the officers Of the Philadelphia
and Reading Railroad Company ar the
time Of this company's organization. and
all the rest of 81, 1850, 900 was handed over
TO the Construction Company under the
construction contract made between the
Port Reading Company and the Construc-
tion-the latter having as an authorized
capital stock 100000, but the capital
stock issued j. only $4,000, the shares
being all full paid.
"Now they make formal denial, in
their answer, that the Port Reading Con-
struction Company holds this stock in
trust for the Philadelphia and Read
lug Company, while they have de-
vlsed this scheme under which they
can make an affidavit. But they have
not denied the substantial part of our
charge, that. iu substance and fact, the
philadelphia and Reading Company owns
aud controls al the stock of the Port
Reading Company, and they themselves
admit that the Central Railroad Com
pany would not have for moment
dreamed of leasing it's road to the Port
Reading Company but for the guarantee
or The Philadelphia and Reading Com
pany. It guarantees the performances of
every act which. under that lease and con-
tract, is 10 be done by the Port Reading
Railroad Company, and the contract is so
drawn that If the Port Reading Company
fails itself to do the act, tile Philadelnhia
and heading Company may step IN aud
Continued on srd PAGE