New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-06-21
ARGUING OVER THE NEW MORTGAGE.
J. c CARTER REPLIES TO Z. PHELPS. AND De
C1sION Is RESERVED IN THE NETWORK.
LAKE ERIE AND WESTERN TRIAL
HOLDERS COMMITTEES.

CISION Is RESERVED IN THE NhN-lOi'N
LAKE ERIE AND WESTERN TRIAL.
Arguments were continued yesterday in the Su-
,reme Court. Chambers before Justice Ingraham.
on the application for an injunction 10 IeS""
,ha %ex-York Lake Erie and Western RatIroau
cornar,. from carving out its intention 70 execute
mortgage for $4,000 OOo upon the property OF the
road with the Farmers Loan and Trust company
as trustee . .,.,
nanv opened the argument. lie denied u'at II ".9
,be r,,rnose Of the company TO convert any OF 'He
securities held under the second consolidated mon
gage bv the terms OF the general mor'sasc' 81
that such securities would be impaired ~ WV,
general mortgage recently executed he ms
,ha, by the provisions Of the mortgage ho'h'nS
void no done which would be prejudicial to the
rights and interests Of the bondhOlders under tle
second consolidated mortgage. ana that t'e " u9
Zee was acting in the interests OF all the Dohu'o,
ore IN this matter The plan of REORGANIZATION ~
stated had been approved by the ma)ori? u ~
,ondholders and its purpose was TO reneNe '"e
-.uroa1 and 70 better secure all parties III inter
es, as the railroad was struggling with dept
r1warl 7 Phelps spoke in the interest OF the
New-york Lake Erie and Western Kallroah Oo'"-
many He contendel that It was not right - ehJ''"
holders Of s3l. 10000 Of bonds from receiving '-'
.scuri,v which they want to receive. or the com
an, from, giving The security which It is nec"s-
sarv ~ give He insisted that without the consent
o. the minority their rights could not "' an"
away by their associates and that whatever ''s'''
10 a foreclosure Of the mortgage under the 'oi'S''
dated bonds without the consent OF the H'"''I'''
he had today. he would have. if It become neces-
sarv for him TO assert his rights. II ne haN no
rights and was merely the victim Of the h'era'
language Of the instrument. that under no CT
stances could ne foreclose without ne "SaI" 9'
sent OF the majority. then what rlsHtS no 3D.
James G Carter in support 4l '"J iI orSm.d N NJ
Injunction. replied to Nh Phelps. re "trESrch en-,
the stocks and securities in question ~. MN IN
braced the greater part OF the assets OF 'le '"i,
road and were included under me secc cor ,neyal
dated mortgage. were also lncInleI IN ~. -. -
marriage and were TO be transferred 10 tle ~
trustee under the mortgage IL was , ei1e ba
intention Of whoever executed IN" KloI r. GO
said 10 transfer all the properties from Wv -
curity OF the original consolidated MOI see
What the legal effect of the document VA .n'
Carter declared was OF comparat,brttS Va 90 be
sequence. II the intention thdt aa,efor -,
looked at and that was 70 secure - ,1'o,t
these securities for The s9e Dff t now the pir
pose 10 secure He insisted that undet nv ~ ,I
stances 1t was impossible that 'hS Tngin,, 70 Inc
into should be otherwise IMAM udIla-t,'S o,5s
holders Of the second consolidated ,iII r.
and therefore those bondh9i1sTs "Sr 30 prevent
the immediate protecuoh Oh tI' - .brestencd an.
the contemplated injury. II was rHr'at,i (.c,,r
initiation OF the effective value OF thtse M
ties that Mr. Carter compIaiheu ~; ,,,od MAJ 4
that upon It's face the mortgage SIly"SSI rartte,
who executed the MORTGAGE nov 10 p": IA, mort
est 10 the minority bOndholders unner Ini' ,e,,r
Tbe rakinp ~ the general mortgage was an AZ
ternut 10 reOrganize the finances OF tHe an -
COMPANY without the unanimous confehl %, u" ~
hor5hniSars Irhcn such consent was necessary !
was an attempt 10 coerce and control mos WI
10 10 50, or upon their refusal 10 "'Pe '"'"
entirely: alien oo,,e, attention to the fact tina
In The action In which the receivers were appoii
ed the prayer OF the complaint Sousllt IT, ~,
nosnteS keen t6e creditors at bay. bring aboif
reorganization OF the company ana inc" 0iS0'"'9
/, was after 3 o'clock when the arguments wer
concluded. Judge lngraham reserved HIS