The herald., 1895-08-17
THE SALE WILL TAKE PLACE
Hearing in the Electric Railroad
Case Concluded
THE RESTRAINING ORDER
Judge M'KinIey Denies the Application
for an Injunction
4 Night Session Held to Hear Argument.
THE RESTRAINING ORDER
The Question Discussed In All
.f Its Phases

yesterday at noon, as was anticipated by
ihe trustees and parties in interest. The
hearing had been continued until 10
o'clock yesterday morning. when it was
expected that Judge Shaw would dispose
Of the restraining order so that the sale
could take place at noon, and at the hour
named the attorneys. capitalists and 9th.
els were in attendance. When Judge
Shaw took his seat he disposed of few
unimportant matters. after which Judge
Bicknell rose and intimated that be was
ready to proceed in the case OF Brearly vs..
the Los Angeles Electric railroad, asking
his honor il he was ready to hear it.
M. A. Dorm, ESQ.,, of San Francisco,
stated that he was ready to proceed,
when Judge Shaw declined to sit IN the
case. saying that he was perhaps techni-
cally an interested party and he did not
think he was proper party to hear 1t.
On this declaration from the bench,
George II. Smith. esq.,, counsel for the
plaintiff, asked for a continuance until
o'clock. He said that he understood that
Judge York was to arrive from Catalina
end that in case he did not come Judge
Mckinley would come up from Santa
Monica.
Ahf. Doiu .oDJcCtcu w tuc
until o'clock as that would prevent the
sale taking place at noon. judge York,
he understood. would arrive at IL o'clock,
and he therefore asked that a recess be-
taken until IL 80 o'clock. He said that he
was very anxious to bring the matter to
q close so the gentlemen from San Fran
cisco could return home.
There was no objection offered and
Judge Shaw declared the hearing contin.
ued until II 80 o'clock.
At II 80 o'clock all of the parties in
interest, together with number of at
torneys were again in the court room, but
no Judge appeared. Judge J. ID. Bicknell
OF counsel for the defendants. stated that
be had received dispatch from Judge
York by the pigeon line that he could not
come, and that crossing the channel
made him 80 seasick that he could do
was then stated that Judge Mckinley had
been communicated with, and would
come up from Santa Monica. He could
reach the city by . O'Clock. and accord
ingly a recess was taken to that hour.
At 2 o'clock all parties were in court
Judge Mckinley had started from Santa
Monica in a buggy about noon, and was
expected at any moment. Owing to the
heat the time made was slow, and 1t was
3o2 o'clock bsiore Judge Mckinley
come. however, he wasted no time in use
less preliminarios, but at once took his
seat on the bench and in his usual busi-
pessllke manner proceeded with the hear
Ing.
Tho attorneys briefly outlined their po-
sitions, for the information of the judge.
Judge Bicknel said that q general de-
murrer had been filed and an answer to
the complaint. He understood that de-
PENDANTS were to show cause why the re-
straining order should be vacated and an
injunction denied. Mr.. Smith stated
that he desired to submit some affidavts
in support OF his complaint asking for
an injunction. and he also desired to ex-
anime the trustees, Messrs. Dorm and
Pond.
Mr.. Dorm then read the complaint on
which the restraining order was issued,
after which he filed general demurrer
and read the verified answer of the trus-
tees. In brief the answer denied all of
the allegations of the copmaint, and fur
ther denied that there was any agree
ment between the bondholders and sock
holders to purchase the road at one-thrd
us value or any other sum that the pur-
chase, If made b. the bondholders was
bona fde in every respect. and that there
was no understanding or agreement be-
tween the bondholders and anyone else
as to the sale. The answer was supported
by atfidavits of Thomas Brown, cashier of
the Bank of California, holder of 2s77 of
the 5000 ponds; 4. b. Pond Lowell White
and Henry G. Campbell. denying that
there was any prejudice among the capi-
talists against purchasing property under
trust deed, as alleged by the plaintiff
but on the contrary this method was pre-
ferred to buying under decree of the
court. owing to the length of time allowed
ssnted lengthy affidavit of D. r. Brear.
ly, in which it was alleged that more
particular information had been secured
since the filing of the complaint. He
further alleged. on information and be-
lief. that General NJ Ii. Sherman. repre-
senting a majority of the stockholders,
was the person referred to rs having en-
tered into an agreement with the bond
holders by which the stock was to be
transferred to them to enable them to
control the property. and that they had
been given certain length OF time in
which to redeem the road. He further
alleged that new company had been or
ganized, or the papers had been prepared
for such an organization. known AS the
Los Angeles Railway company, to con-
troll such property; that the San Francisco
Savings union was largely interested IN
this com pany, and that Il. b. Pond. be-
ing a tockholder in the San Francisco
Savings union, was designated to act as
trustee. The affidavit concluded with
the interviews with Messrs. Pond, Dorm
c'iA"ASt P"oi'ShSA ~ JSosoAuoy
Herald.
Judge Bicknell promptly objected to
the affidavit, moving that it be stricken
out. 1t was argumentative. opened up
new ground and was more of complaint
than the original.
After argument Judge Mckinley over
ruled the objection, whereupon an excep-
tion was noted and after some further talk
between counsel, Hon. Il. B. Pond was
sworn and took the stand. and in answer
TO questions by Mr.. Smith stated that
the trustees lad duly advertised the pro-
posed sale as provided by the trust deed,
which had been strictly complied with.
He had also done everything possible in
good faith to secure the best possible
price for the property, talking with cap
italists in this city and San Francisco. but
he found there was no disposition to en-
ter on so large a ira ,saction.
AT this point argument arose between
counsel as to Mr.. Pond being a party in
interest and therefore disqualifi ed to a,t |
as trustee. Judge Bicknell vigorously OBJ
jected to this new element being injected
into the case at this time. This was out
side the pleadings and the plaintiff |
should confine himself to the complaints. |
Mr.. Smith then asked leave to amaend |
The complaint. when Judge BicknelI |
again objected, and when Mr.. Smith !!
wanted an adjournment for this purpose |
there was another vigorous protest from |
attorneys for the defendants. General |
argument continued until O'Clock. Mr.. |