The World. [volume] (Martinsburg, W. Va.) 1891-1896, 1892-12-21
DECISION AGAINST THEM
Trustees Of Harper, the Defaulting
Bank President,
KNOCKED OUT BY UNCLE SAM
The Case Was Brought By Preston 4 MoIienry IN The
United States Supreme Court A Ruling Also
Made in Two Of tho Railroad Gases.

WASHINGTON. Dec. 2I.--Thc United
States supreme court Monday rendered.
a decision against the trustees Of r. L.
Hnrper. the Cincinnati grain plunger
and defaulting president OF the Fidelity
national bank, In suit brought against
him by Preston q MelIenry, grain
brokers Of Chicago. 10 compel Harper
and bis associates TO pay their unpaid
subscriptions to the capital stock Of the
Cincinnati, Columbus and Hooking Vail
ley Railroad Co, In order TO satisfy the
Judgments Of Preston & MelIcnry and
others against the company which rc-
manned pnsatistied after proceedings ut
law.
The court In an opinion by Justice
Shiras, says that the evidence connect
ed with Hnrpcr's organization Of tho
company fully jnstifics the opinion Of
the court below that II twas grossly
fraudulent from first TO last without
single honest sentiment or rcdeeming
feature, and that the generalization of
the property transferred 10 the railway
company by Harper in pretended pay
ment Of subscriptions to tile capital
stock was 30 gross rs 10 clenrly cntitle
bona flde creditors TO enforce actual
payment rs the subscriptions Tho
court then considers Iiarper'a defense
that Preston, McIlenry ct al, were not
bona fide creditors.
His allegation that Preston and Nc
Henrys when they agreed 10 take tho
company's bonds In payment of Har-
per's Indebtedness 10 them, were fully
cognizant OF the mode Of organization
Of the comnnnu and nrivy 10 IL Il not
supported by tho evidence. Il also
holds that the evidence likewise fails TO
support Harpcr's avermcnt that his
original indebtedness 10 Preston u Nc
Henry, In payment OF which they took
the railway bonds arose out Of gam
bling wheat deal on the Chicago board
f-nf tradc.ss
Tho United States supreme court
Monday affirmed tho judgment OF the
circuit court 81 the United States for
the northern district Of Ohio In the case
Of George J. McGourltey, trustee appel
liant, Va the Toledo and Ohio Central
Railway Co. This was an attempt on
the part Of holders Of car trust certifi-
Gates Of the road named 70 have their
rights adjudgcd 70 be paramount TO
those Of the first mortgage bondhold-
ers, and to compel the performance Of
the lease between McGourley, as trus-
tee, and the Ohio Central Railway Co.
for the rental Of rolling stock by tho
sale Of said stock and tho satisfactioA
Of their claims.
The Ohio Central was sold by order
Of the court for the foreclosure Of q
mortgage for q, 900. 600. was bid in by the
bondholders and reorganized under the
name Of the Toledo and Ohio Central
Hallway Co. Tho rolling stock was
sold along with the other property. and
McGonrkcy's proceeding was in the ma
ture Of an Intervention TO secure the
cars, locomotives, etc. Justice Brown
delivered THE courts opinion. Chief
justices Enller and Justice brewer dis
eenteds
Monday the supreme conrt straight
ened out complication In the new cir
cult court OF appeals for the Ohio and
Indiana circuit by designating Chief
Justice Fuller TO temporary duty In the
Seventh circuit, to which Chief-Justice
Harlan is permanently assigned. II
denied the application Of counsel on
each side TO bring up direct from tho
circuit court, and without trial In the
newly created circuit court Of appeals,
tho suit between the Cincinnati, Hamil-
ton and Dayton Railroad Co. and3W r.
Kean, arising out Of the railroad opera
lions Of Henry 8. Ives. few years ago.
This Is the case In which the circuit
| judges were disqualified 70 act. making
| Il impossible to organize the appeals
court without, the presence of Justice
Harlan or asnbstitnte;