The herald., 1898-04-20
CONFLICT OF COURTS
MATTHEW GAGE VS.. RIVERSIDE
TRUST COMPANY
United States Circuit Court VS.. the
High Court Of Justice in
England

On Monday last Judge Ross rendered
decision of more than ordinary Importance.
as 1t was in connection with legal con-
test which is pending, not only in his court,
but also In the high court Of justice In Eng
land. and the issue involves over 50 900 600
worth of property in Riverside county.
Matthew Gage constructed the Gage ca
nal and purchased land under that canal
until he had property valued at 81, ,0O00 0OC
or more and his debts amounted to about
81, 900 900. He sold the property to an Eng
lish company in 1889 for 81. 900, 900 and por-
ton of the stock of the company which
called for two-thirds of the profits of the
company, after paying per cent on the
money paid by the English stockholders
for their stock Notwithstanding this con-
dition Of affairs, the English stockholders
had control of the management of the COM
pany. OF this 81. 900 900 portion of the pur-
chase price, $s20.0O0 was paid in cash. and
$3.50 900 was to have been paid out of the
first profits as ascertained at the end of
each year.
Mr.. Gage, needing more money, borrowed
800 900 from the Northern Counties Invest
ment trust( limiteD of Bradford, Eng.
giving all his stock in the Riverside Trust
company and his deferred payment claim
of $lSO,OOO as security. Soon after this the
Northern Counties company Joined hands
with the Riverside Trust company, pur-
chased some of it's stock and helped to
manage the business of the company, when
the latter company declined to pay Mr..
Gage his deferred payment, claiming that
there were no profits although valuable
lands and water rights had been sold, and
the company had planted 1900 acres of
citrus orchard, the crop from which this
season amounted to several hundred car
loads of choice fruit, and the profits of the
company, in increased valuations, had
amounted to slOOO,OOO or more.
In 1894 Mr.. Gage commenced suit against
the Riverside Trust company for an ac-
counting, making the other English COM
pany also party to the suit. This suit
was commenced before Judge Ross In the
United States circuit court. Both compa-
nies were brought into court, and they
cliamed that Mr.. Gage had no interest
whatever in either company. and neither
company owed him anything. as he had
parted with his stock and claims In con-
nection with the Riverside Trust company.
Last July Mr.. Gage went to England. and
while there he was sued before the high
court of justice for a foreclosure of his
interest in the Riverside Trust company,
after it's statement before Judge Ross that
he had no such interest.
When Mr. Gage returned to California
he applied to Judge Ross for an injunction
to restrain the English companies from fur
ther prosecuting their claim against him,
as the matters at issue were all being ad-
Indicated before him in a court having
Jurisdiction over the property In question.
He charged them with conspiracy to de-
fraud him of his property rights. and an
attempt to take from him property in an
English court, where 1t was impossible for
him to properly defend his rights. He
claimed that If one of the companies te
the conspiracy would pay him his deferred
| payment, now overdue, he could pay the
| other company to the conspiracy, and thus
save his large interest in the company.
| 1t was this case that Judge Ross decided
| on Monday, when he granted the intunc-
ton and made it perpetual. The decision is
long one, and from careful reading OF
| the document the conclusion Is reached
that Mr. Gage will yet get back his prop
erty interests in United States court, re-
gardless of what an English court may do.
| The property of the Riverside Trust COM
pany is today valued at $3,600,O 900, and If
the company should sell its property and
divide the profits, as provided in the COM
pany's charter, Mr.. Gage would have over
| 81 500, 900 from the proceeds.