Morning journal and courier., 1892-08-02
DERBY SUES THE HOUsATONIC.

Injunction to Prevent Payment OF
Interest Bonds - Vice President
Tuttle,s Explanation OF the Action
Interest on Forty-Eight Thousand
Dollars, Worth of Certificate Indebt.
edness Due Yesterday.
A Bridgeport dispatch yesterday says:
The most startling move yet made in the
complex campaign which has grown out
of the former control of the Housatonic
railway system by Messrs. Bostwiok, Star
buck and Macauley was made In this city
and New Haven this morning. The Hou-
satonio Railroad company were garnisheed
In tho sum of $4,000, interest due and
payable, this morning on mortgage bonds
to the amount of of 1926, 900 of tho New
Haven and Derby railroad, formerly held
by the city of New Haven, and which were
by that city sold to Messrs. Bostwick, Star
buck and Macsuley. The latter parties
conveyed them to the Housatonic road
when the New Haven and Derby road was
made part of the Housatonie system. Be-
sides the garnishee, writs of Injunction
were served by Deputy Sheriff Pond of
| New Haven upon President Barnett and
| Secretary Stone of tho Housatonic road,
restraining them from paying the interest.
Messrs. Bostwick, Starbuck and Macauley
were also similarly enjoined. The New
Haven and Derby Railroad company are
the plaintiffs.
The garnishee and injunction are COM
paratively trivial matters, however, as
compared with another phase of to-day's
proceedings. Bostwick, Starbuck and
Macauley and the Housatonic Railroad
company have been made defendants in
courts of this state. The other suit
against them, in which the New Haven
and Derby Railroad company also appear
as plaintiffs, is for 500. 200, the papers
being drawn up by Lynde Harrison last
Saturday.
This last named suit is based upon an al
legged over-issue of bonds amounting te
$3.50, 900 in mortgage certificates, and which
occurred during the time which Bostwick
Starbuck and Macauley were in control O.
the property. Writs of attachment wer'
also issued against the property of the de
PENDANTS and placed in Sheriff Pond
hands. The latter officer first searched
New Haven, and then under special depu
tization by Sheriff Clarkson endeavored t.
find something in this city owned by eithe
of the gentlemen named, but could no
find dollars worth of property. Writ
of attachment were served upon the of
, GERS of tho Housatonic road, however.
The present steps are the result of
; searching investigation of the books Of tn
| New Haven and Derby railroad. The 81
, | act facts are not at present open to tn
public, but it ia said that the books do nc
> satisfactorily account for the over-issue
The attorneys for the plaintiffs absolute
Il - b. kh.3u r1,n%i1 hns
bill of particulars Is ready. Whether c
| not the failure to satisfy the writs issue
: against the property of Messrs. Bostwicl
Starbuck and Macauley will engender othe
| proceedings could not be learned Ida.
. It ia said, however, that there will be fu
ther interesting developments in fe
, days.
II Treasurer Squires of the Derby ros
would say nothing when interviewed
. j. New Haven yesterday morning, but VII
: | President Tuttle was willing to make tt
J following statement:
"The Injunction was issued at the r
- \ guest of the New Haven and Derby raj
- | road, restraining the Housatonic road fro
,. | paying the interest due to-day on $3.50, Oh
= worth of the Derby railroads csrtifca
=. indebtedness. The real purpose of the i
=, junction, however, is to bring the who
, matter in the courts, and then to test Il
> validity of the issue. The amount
o | present involved is 81, 400 worth of /
. terest bonds, which except for the /
II junction would be payable to-day"
10 Attorney Lynde Harrison, counsel f
20 the New York, New Haven and Hartfo
- railroad, said yesterday afternoon that Il
=. New Haven and Derby railroad had yeste
- day obtained an injunction against t
~ Housatonic railroad in a suit to restra
]. the latter road from paying to the city
n New Haven some $14, 900 interest due t
~ city yesterday. The city holds $3.50, o
70 worth of Derby bonds, and the Derby 70
70 alleges that the securities in question we
~ | illegally issued. A hearing on the injur
~ ton will be heard in few days.
~ The writ is returnable before the SUI
~ ~ rior court In this city on the first Tuesd
- | OF September next.