The herald., 1893-01-28
A TREMENDOUS LEGAL TAKCLE.
The Attempt to Foreclose the
Cable Railway Bonds.
Henry Earl Acquitted of the Charge
Of Embezzling a Letter.
The Proceedings in the Cable Railroad
Case-Notes of Cases ON Trial Yes
terday New quits That
Were Filed.

The trial begun before Judge Van
Dyke yesterday morning in department
No. of the superior court of probably
the most important foreclosure suit ever
! brought in the county.
1t was the suit of the Illinois Trust
and Savings bank vs. The Pacific Gable
Railway company to forecluse the first
and second mortgages securing the large
amount of bonds issued, the total
amount being between 100000 and
$4,000, 600.
The case is an exceedingly compli-
Gated one and there are 80 many differ
ent interests represented that the array
The plaintiff is represented by w. P.
Gardiner and Willoughby Rod
man of this city and Judge
Walker of Chicago, who was not
present yesterday. Judge J. M. Allen
of San Francisco and H. o. Collins ap-
pear for defendants Brown and Afford,
trustees; Attorney w. Fl. H.
Hart represents the executors of the
estate of Joshua Hendy, deceased; S. G..
Hubbell represents the Los Angeles
Gable Railway company; Messrs. Chap
man and Hendricks represent them
selves; John d. Pope appears for the
Consolidated Electric Railway company I;
Houghton, Silent and Campbell appear
for Peabody and other intervenors; VIM.
A. Ryan and w. T. Williams appear for
F. J. and M. L. Coenan ct al, while
John D. Bicknell represents Receiver ].
F. Crank.
The suit involves very important
questions, and there are so many
branches to it that the process of getting
the case under way was somewhat tedi-
GUS. The suit was first started by the
Illinois Trust and Savings bank of Chi
cago to foreclose the second mortgate
for 81 100000 given by the Pacific Rail-
way company. The Los Angeles Gable
Railway company e,me in and set up
the first mortgage and asked to have it
foreclosed. All the other parties inter-
ested, in defeating both mortgages are
judgment creditors.
There are complaints in intervention
by Afford and Brown, as trustees hold
ing the bonds executed by the Los An
geles Gable Railway company for 81 ,l00,-
600; by the executors of the Joshua
Hendy estate for debt of construction
against Los Angeles Gable company for
ment for $4,000 dassesss against the
Los Angeles Cable Haiiway company );
and by claim in Intervention by Chap
man & Hendricks for $2500 for services.
One of the most important branches
of the case has arisen through points
raised by Attorney General Hart, repre-
senting the Hendy executors. He is
trying to defeat the foreclosure on the
ground that the deed of trust given by
the Los Angeles Gable company to the
Pacific Gable Railway company was exc
cuted without authority of law. He
claims that under articles 8 and 10 of
the constitution q foreign corporation
organized as this was under the lawe of
Illinois cannot come into California and
do business. He yesterday raised this
T. point and made some little argument on
= the subject.
In addition to the complaints in inter-
vention already named there is one
more, that of the Electric Railway COM
pany of this city. who seek to sustain
the interest they acquired under the
orders of court, giving them the right
to use the tracks of the cable company
on Spring and Upper Main streets.
The history of the cable system of Los
Angeles is well known, ana the intri-
cate problems winch nave arisen in the
manipulation of it's bonds have already
been referred to extensively in the
newspapers as they came up. Originally
organized as the Los Angeles Gable
company, it was finally reorganized as
the Pacific Railway company, and the
last named corporation acquired all the
property OF the former. 1t has been in
the hands of Receiver j. f. Crank for a
year past, and the final adjudication
upon the mortgage is now before the
court for determination.
The trial yesterday consisted merely
of the reading of ae pleadipgs, which
are very long, and he reading of deposit
tions from @. B. F. dimes of Chicago and
Others in regard to the manner in which
the company was organized and history
of the operations which led to the iesu-
ing OF bonde ard the giving of the mort
cages in question.
The trial of the osse will last several
days. Superintendent Akin was on the
Il witness stand little while during the
AFTERNOON and gave come testimony
with reference to the books and the cor
respondence between himself and @. B..
Holmes. The trial will be resumed this
morning at 8 80 o'clock.
PECIJI IND NAcz