The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-06-01

out has wholly surrendered the same to
the Philadelphia and Reading Company.
Ihe bill alleges that the recent rise in
Ihe price or coal is due to this deal The
Port Reading Road is only a cover TO
comply with the laws of the State and
Is designed to commit fraud on the
people. 1t was constructed with money
furnished by the Reading Railroad.
| The bill further alleges that the lease
purported to have been made by the Cen
| trail Railroad was executed and delivered
without any power whatever contained
| in the charter of either company nor by
the authority of the stockholders.
The Attorney General believes that the
leases are wholly invalid and void tor
want of authority from the State. 1t is
also claimed that the Central system in
cludes number of smaller roads leased
to them, and that they have no right to
lease them to other parties. He urges
that the lease be declared void and the
corporate defendant be ordered forever.
hereafter, to cease from all combinations
having In view the increase of the price
granted but no date fixed for the return.
of coal.
THE JERSEY COMPANIES.
Two of the most significant sections in
the Attorney Generals complaint are the
fcllowing:-
90 That the Port Reading Railroad Company
is wholly Incompetent to perform the covenants
Tor lne payment OF money WnlCn are COUIAlueu
in the said pretended lease and wholly incom-
petent aud unable TO exercise to corporate
franchises of the Central Railroad Company of
New Jersey or to perform the pubhc DUTY
which said company owed to the State of New
Jersey and therefore agreed to substitute cor
poration more able to perform such covenants
So. That the corporate and prerogatlve fran
chises powers and privileges granted by the
State of New Jersey to the Central Railroad
were granted expressly to the said corporation
alone, and were made assignable only for special
and hat Railroad
Company alone could take and enjoy the same
and discharge the public duties arising on its
part by force of such grant.
MR.. GUMMERE'S MOVE.
William e. Gummere, special counsel
retained by the State. argued peculiar
suit before the Chancellor as an auxiliary
to the Attorney Generals suit. 1t Is
brought by Alfred Mills and John l..
Lidgerwood, surviving executors of
Stephen Vail, late of Morristown He
urges that the Centrars lease be set aside
because 1t is injurious to the stockholders
He also asks for the appointment OF re-
ceiver for the Central.
Mr.. Gummere sets forth that his NOM
inal clients hold /, 400 shares of the Cen
tral Railroad stock. In his bill he details,
somewhat in the same way as does the
information of the Attorney General, the
history of the incorporation of the Cen
tral Railroad Company. and the adoption
by it of the business OF mining and trans
porting coal. The attempt OF the officers
and directors of the Central Railroad
Company in 1888, with the assent of ma
jority of the stockholders TO lease the
works of the Central Railroad Company
to the Philadelphia and Reading Railroad,
is stated, and also the fact that the Court
of Chancery, in response to Dill present.
ed by the Vail Executors, set aside the
lease on being ultra UtreS null and VOID.
The bill then presents, with great force;
lal 60 EnntI
to the Port Reading Railroad, and de-
tails the character of the Port Reading
Railroad Company and the pretentions
character of the lease. The bill alleges
that the lease has never been submitted
to, nor been ratified by, any Meeting OF
the stockholders of the Central Railroad
Company. The bill details the enormous
business and property of the Central Rail
road, and asserts that the Port Reading
Company Is effacing the marks by which
the property of the Central Railroad may
be identified as belonging to that COM
panv, and is removing much of it out OF
the State and beyond the jurisdiction OF
the Court. 1t charges that the Port Read
ing Company is wholly irresponsible
for the moneys agreed to be paid, and
that the only security that the STOCK
holders of the Central have is the guar
antee of the Philadelphia and Reading
Railroad, q foreign corporation, the fund
eu SFCCk anu tldDlllUlcS VI aAdOuhO
to Sl69, ,914, ,3l927, On which the company
was unable to earn or pay any profits or
dividends. The Central Railroad at the
time of the pretended lease was earning
per cent. dividends above the expenses,
and that good management would have
ensured 10 per cent, and that said lease
could not possibly produce such results.
The lease is for 999 years. which 1s practl-
cally grant in perpetuity, and takes
away, Injuries and destroys the property
and rights of the stockholders. without
their consent, and materially alters ana
changes the scheme and character OF tne
com pany to further which the stockhold-
ers invested their money.
SECOND ORDER.
The Chancellor upon this application
granted the following order:-
1t is on this 31st day of May in the year
the Central Railroad Company of New Jersey.
the Port Reading Railroad Company, and the
defendants named In the bill of complaint IN the
above stated cause do show cause before the
Chancellor at the State House, in the city of
Trenton, on Wednesday, the 18th day Of June
next at ten O'Clock in the forenoon, Why re-
ceiver should not be appointed to take charge
and custody of the property and possessions OF
the Central Railroad Company of New Jersey,
pending the determination of this suit and why
an injunction should not issue according TO the
And it is further ordered that the aid defend
ants, the Port Reading Railroad Company. their
OlLc6rS anu aSsHISs eDplOy anu SeINdHtS' Wv
in the meantime, and until the further order of
this Court, desist and refrain from obliteratng
auy of the marks which identify as the property
OF the Central Railroad of New Jersey the roll
ing stock steamboats,, ferryboats and other per-
sonaI property which has been delivered into
their possession under the alleged lease set forth
in the bill of complaint in this cause; aud from
placing upon said rolling stock, steamboats,
ferry boats and other personal property, marks
identifying the same as the property of the said
the Port Reading Railroad Company; and also
do desst and refrain from turning over to the
Philadelphia and Reading Railroad Company
the possession and control of any Of the tools,
was delivered into the possession of the said the
Port Reading Railroad Company under the said
alleged lease, and from removing the same. or
allowing the same to be removed from out the
Jurisdiction of this court.
And it is further ordered that the complain
ants do serve true but uncertihed copy of this
order and of their bill of complaint, and the afIi
dayits and exhibits thereto annexed upon the
defendants. the Central Railroad Company of
New Jersey and the Port Reading Railroad Com
nany by delivering the same to the Presidents
of the said respective corporations, and also that
the said complaiLants do serve a true but uncer-
tilted copy of this order upon each OF the other
defendants in this cause,
And it is further ordered that the services here
inabove directed be made upon the said defend
ants within five days after the date hereof.
The injunction was served upon the
officials of the monster combination this
morning between eleven and twelve
O'Clock.
THE CHANCELLOR SPEAKS.