New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-06-20
RAILROAD INTERESTS.
ERIEs NEW MORTGAGE Contested.

ERIE'S NEW MORTGAGE Contested.
SUIT BY JOHN j. EMERY IN OPPOSITION TO THE
DISCRIMINATION OF COUNSEL
The proceedings instituted in the name of John
J. Emery to prevent the execution Of the proposed
general mortgage for S7O.OoO.ceO by the New-York,
Lake Erie and Western Railroad Company came
on for argument yesterday in Supreme Court
Chambers on order to show cause why an IN
junction should not issue TO enjoin the proposed
execution of the mortgage. The suit is brought
hy John J. Emery the owner and holder OF S"'en
second mortgage consolidated per cent bonds. Sc
cured By the consolidated mortgage In 1873 and
who brings the action in behalf of himself ana all
other holders OF bonds of that issue VINO may JON
with him for the protection of their rights under
the consolidated mortgage. Mr.. Emery Is repre-
scented by James c. Carter Charles c. Beaman and
Charles l.. Atterbury while Herbert b. Turner rep
resents the Farmers Loan and Trust company as
trustee Of the mortgage. and ex-Minister EDWARD
J. Phelps and F. b. Jennings appear for the rail-
way company. -
gage Of SIC ocoO Illegal and void. and should he
I SO declared and cancelled and that an injunction
should issue restraining the railway company from
recording the mortgage, and from eNeculins any
of the bonds under IT. The second consolidated
mortgage bonds OF which Mr.. Emery Is the owner
of $4,000 were issued in october. ISIS There Is
OF 81, OS2 922 as to which default has been made II
is charged that in violation OF the proviis visions OF
the mortgage and the rights OF the holuor na,y
bonds secured thereby. the railway cornps s1c
! pledged stocks,
were contained in the mortgage executed IN is,s
and instead Of using the proceeds in the payment
I the principal OF the Indebtedness OF the company
used II various Indebtedness or me rail-
| mortgage in question. The company transferred
TO the United States Trust Company IN Noyemosr
| stocks and securities OF the value OF Hl,SS'A ~
1t has also pledged TO various cTcdoss Of hc ra
| made since September 1856. 10 the amount OF si1-
OOc 600 stocks and securities to an amount greauy
/ in Of
/ Farmers Loan and Trust Company as security Tor
rne Ttb the NewYork pennsylvania and
Railroad Company, stocks OF the value OF about
s75 OOo This 10 done II is alleged. Notwithstanding
that all the stocks and securltles so pledged are
sS 6 x u ane wRch and other
| holders supposed 10 be secured -,
over an hour in his statement OF the facts and the
'' After Mr. %terbury had ended his Of
the case, Mr.. Jennings presented ms side OF nc
He contended that The compony b ha1
property and real estate which SUB
gnd that any person entering into the new mort
gage scheme would be amply protected Tor any
P the Conclusion Of his statement. Justice Ingra
ham said that he could not hear the other counsel
lanes G. Carter will be heard for Mr.. Emery. and
ex-Mnister Edward j. Phelps for the railroad COM
! PAM.
HALF-HOLIDAY TRAIN TO BEGIN RUNNING.
The Saturday half-holiday train OF the New
York. Ontario and Western Railway will begin
| running on SATURDAY. June %. leaving Franklin-si,
an n m West FOrty-secOnd-st. lH p. m. ana
| Weehawken 2 p. m. and run 10 Fockland. arriving
J there at 40 D. IN.
THROUGH FLOUR AND GRAIN RATES CAN
CELLED.
Chicago June 19-Chairman Mideeley' on behalf
OF the Northwestern lines, has given notice to the
Eastern lines that through rates on -four and grain
| from MINNEAPOLIS by way OF Chicago have been
| cancelled He has also Informed the interstate
| Commerce Commission that the advance rates are
canrrcd while all traffic viii be taken on the sum
NJ the local rates The grain traffic from the Norm
! west Will consequently 20 from Chicago Dy lake
| 10 Buffalo and Ogdensburg. thence by ran 10 It's
| destination.
! RECEIVER FOR A ROAD IN THIS STATE.
! r.,ca y y June 10 (SpecaD.-ln the United
States Court In this city to-day George W. Jones
was appointed receiver OF the Schenectady railroad
Companv The application was made on behalf OF
| mo Central Trust Company OF Now YORK, which
! holds a mortgage on the road for SoV" ana othei