The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-12-12
AGAINST THE BOND-BUYERS.
Friendly Action Over the Issu-
ance Thereof.
LEGAL OPINIONS ARE QUOTED.
The Question of the Legality Of the
Cons oIidation Placed Before
Judge Wallace.

By suit FLED yesterday in the Superior
any doubt the legality of the recent con-
soldation of the Market-street railways
into one gigantic combine.
The suit is headed the Market-street
Railway Company against l. w. Hellman
and others. 1t is what is called an agreed
suit, and tie circumstances leading up to
it are found In the issuance of 100000
bonds by the consolidation. The opinion
of some of the leading lawyers of the city
was taken as to the legality of this pro-
ceeding and the preponderance of opinion
held that it was illegal. This decision, of
course, prevented any coming to terms be-
tween buyers and vendors of bonds, and it
was agreed, after some elaboration, to
leave the matter to the decision of court.
1t was not proposed by either party to act
IN the dark, and so before the placing of
the proposed bonds can be brought about
1t is necessary for the buyers at least to be
made perfectly secure.
The suit. as before stated, is an agreed
one. There is no difference of opinion as
to the facts, but only as to the questions
of law involved. So the present suit was
filed yesterday on behalf of the consoida-
ton, and in conjunction with /. w. He'll
man of the Nevada Bank the following
appear as defendants to the suit: A.
Borel, Daniel Meyer, Phil Bartb, the Ne
vada Bank. the Bank of California and A.
Nj. Parrott. The counsel for the combine
are: j. E. Foulds. w. T. Herrin and
William c. Belcher, while the defendants
are represen ted by Robert Y. Hayne.
The complaint states that the authorized
bond issue of the combine was Sl7.500.000
but that up to the presen. only $500. 600
worth of bonds have been issued. How
ever. the whole $17,50O.OOO is the amount
really at stake in this suit. although
S1.0O0,000 worth only is quoted for the
sake of arriving at conclusion.
Presiding Judge Hebbard has assigned
the case to Judge Wallace. 1t is more
than probable that a snap judgment will
be taken and the matter at once placed
before the Supreme Court for final de ter
mination. The complaint in question is
very volumino Gus and .recites every article
of indenture or agreement yet drawn up
between the various companies forming
the consolidation. Following is the prayer
OF the plaintiff:
Wherefore plaintiff prays judgment:
First-That the severaI railroad corporations
herein named were duly consolidated into the
Market-street Cable Railway Company, plaintiff
herein according 10 the statute in such cases
made and provided. and in all respects according
TO law, and that plaintiff is a duly and properly
organized corporation, and the successor by
pOratons, and the owner of all The property
and franchise formerly owned by said constit-
uent corporations respectively, and entitled to
dispose of and incum Der the same against
every one. including all and every OF the stock
holders OF said constituent corporations. and Of
each of them, and that all The proceedings
authorizing he issuance of said bonds were
properly and legally taken, and that the said
bonds are valid bonds of plaintiff and are
properly secured by said mortgage or deed of
trust upon all the property described therein,
and that said mortgage or deed of trust is a
valid security upon all the property mentioned
and described therein for the payment of said
BONDS according to the tenor thereof.
Second-That plaintiff have judgment that
the defendant be compelled to take the said
1000 bonds and 10 pay therefore The sum OF
S1,00o,oo0.
The REQUEST made by the defendants is
simply that they be dismissed with judg-
ment for their costs of action. A speedy
hearing of the suit is expected. as much
hangs upon the result.