The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-07-15

THE CHN7RAL'S REPLY.
Papers Filed in the Court
of ChancerY in the
Reading Lease
Suit.
POINTS IN THE VAIL COMPLAINT.
New Jerseys Road Not in the Goa
Tradc-Value of the Stock
Enhanced.
POINTS In THE VAIL COMPLAINT.
Special to the Jers, y ctr Ne,cs.

%eNN
TRENTON. July 10. 1Ss2.-Ihe Central
Railroad Company of New JERSEY aud its
directors. through their counsel. B.
Williamson, have filed an answer in the
suit brought by Alfred Mills ct al, exc
cutors of Stepnen Vail. deceased, COM
plainants. This includes he joiut and
separate answer of the defendants. the
Central Railroad Company aud Edward
ID. Adams, George T. Baker, Harris [.
Fahnestock. James A.. Garland. Henry
Graves. Charles Lanier, Henry w. Max
we'll, j.. Rogers Maxwell and Samuel
Sloan, to the bill of complaint OF Alfred
Mill, and john II. Lidgerwood. surviving
executors of Stephen Vail. de ceased, COM
plainants. The answer sets forth:
STEPHEN Walls WILL.
The defendants abs We named, answer
ing the bill of complaint. or SO much
thereof ITS they are advised it is material
or necessary for them TO make answer
unto, answering say
l.. They have no knowledge, save as
they are informed by the II OF complaint,
as tn the Allegations eoGiaiIl ell in the
clauses of the bill relating to the will of
stephen Vail. The qualifications of execu-
tors hereunder aud the acts of such ex-
ecutors. They admit. however, tuat
Stephen Vail died. as alleged in the bill
of complsiaJ. leaving a last will
and testament. with codicils, under
which the compliments are now eXecu-
= hrs OF trustees, and allege that for q long
time previous TO August 9th. 1890, 2.04S
shares of the capital stock of the Central
Railroad Company of New Jersey stooi
in the name of Stephen Vail. Between
that date sand February 8, 1891, all of the
certificates representing said shares of
stock were surrendered by the complain
-... -.xl ,,n..t zzrf S.aFaa Rz.Aa A@f
at their request. of which new certificates
those numbered Irouu 794 to 79S, both in
ciusIve. fer an aggregated amount OF ,450
stares, new stand In the name OF
stephen Vail Estate, Alfred Mills and
john Fl. Lidgerwood. Trustees"
.. They allege Il az the Central Railroad
Company of New jersey il u corporation
organized and existing under acts OF the
lie iSiature (which the answer specific
ally and separately speci lies of the State
OF New Jersey, aud is possessed of all the
pow Ell ana authority conferred uuon is us
II r. ilroad corporation, either Dy virtue of
sa d acts TT by the general laws of the
State of New Jersey applicable to it. or
otherwise.
THE OLD BANKRUPTCY.
In 1877, owing to u great depression in
the general business Of the company, and
particularly in the anthracite coal trade,
l. became financially embaFras. ed, was
d, c.ared insolvent by the Court of
Chuncery of the State of New Jtrsey,
and Francis S. Latnrop was appoint
ed its Receiver, which Office he con-
tinued to fill until his death, in 1852, when
Henry ). Little was appointed kece. Yer
in his place. On May 25. 1883, by decree
Of The Count OF Chaucery then made, the
Central Railroad Company Of New Jer-
sty was declared to be solvent and was
restored to The possession of said CON-
pany.
These defendants deny that the Central
Railroad Company has ever embarked in
the enterprise of Mining OF selling coal,
CT has obtaiDed possession OF conl lands
i'll The anthracfts coal region. or that it Is
engaged in the business of developing
c1al lands or mining coal, OR Jh at tits a
COAL producing corporatIon, or that it
IfilEeu or sold coal during the year 1892,
or ever, or that the mining or the sale OF
cnnl Is its chiet business Or It's business ut
all. or a business in which any part of its
capital has been embarked.
INCREASED EARNINGS.
After admitting anu denying at length
the numerous charges made in the bill of
complaint, the answer further sets forth
that the gross earnings of the Central
Railroad Company for the TOUR months
ending May 81. since the leas., have been
nearly $400, 600 more, and its net earnings
nearly $200. 600 more than for the CORE
%spoudipg year before the ! ase, an in
crease that would not have cen made ex-
cept fer the traffic Contributed TO it by the
Philadelphia and Reading Railroad.
Further
The stock of the Central Company has
risen in value since the date Of the lease,
and in consequence thereof more titan
twenty per cent, its average weekly
price for the month of January before
that date having varied from 1I1% to H.
and its average weekly price since that
date having varied from 145 to 1876. the
lower price having been reached only
after aud partly by reason OF the COM
mencement of this suit.
The defendants aver hat If the lease
should be set aside, as prayed for by the
bill, or any provisional remedy granted
Inch would interfere In any way with
the Il of business under said lease,
the revenue OF the Central Railroad
YOU be greatly dimini he'd, the value
of its stock wuull be deprecated aud
great and irreparable injury tone, not
only TO the company and all its stock
holders other than coniplaiDants, but to
the bsneticiaries to whom the complain
ants are trustees.
GENERAL DENIALs.
The defendants also deny each aud
every allegation OF fact and conclusion
OF law contained in certain clauses of the
bill not admitted or alleged TO be true.
And they deny ali aud all manner of
unlawful combination and c~onfederacy
wherewith they are by the same bill OF
cOHlpthiHt Cudrkeu Wltnout tHls, CaAC auy
other matter or thing in the complain
ants bill of complaint contained, material
or necessary tor these defendants to make
answer unto, and not herein and
hereby well and sufficiently an
swered, confessed or avoided. traversed
or denied, is true; all of which matters
and things these defendants are ready
aud willing to aver, maintain and prove
as this honorable COURT shall direct. and
then hqfnbly pray to be hence dismissed,
with their reasonable costs and charges
In this behalf most wrongiuliy sustained.
The answer by brief is signed by J. r.
Maxwell, President; Samuel Knox, Sec
rotary. and B. Williamson, Counsel.
A separate ans yer OF the Port Reading
Company was fled in the sane suit, SET
ting forth 50 bsta italy The same affirma-