The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-10-09
COURT RULING
RE
TRUSTEE
Need Not Turn Over $3.50, 900
of Stock to South Ameri-
can Railroad Assignee.

In a decision rendered yesterday and
nled today by ce-Chancellor Stevens
several titled Englishmen and New
York 1nanciers are relieved from the
payment of about $3.50, 900 of the cap
ital stock of the Guayaquil and Quito
Railroad Company TO Arthur l.. An
drews. assignee of h claim held
against that railroad by Robert c,
Pruyn, of Albany.
The court decides that the EVIDENCE
presented when the ease was on its
final hearing does not warrant an order
compelling Lord Wolverton, A~lgernon
Henry Mills, Lord Hillington, Pascoe
Charles Glyn, David Greenhili and
Bruce Gardyne, of the Mansion House,
London, England, and Lafayette Hoyt
De Friese and Benoni Lockwood, we'll
known New Workers, as trustees. and
Receiver Black, of the railroad and of
the E~cuadorian Company. to make an
assignment of the $500 0 of stock or
TO grant other relief in the premises.
The decision ends litigation which
has been before the courts of New
York. New Jersey, England and Ecua-
dor since 1903. Incidentally, it causes a
loss of more thar $500 to fall upon
Bank President Pruyn, whose money
it was that made it possible for the
railroad across cuado to be built
under the terms of the concessions
made originally to the Ecuadorlan As
ISOLATION, a Scotch corporation, and the
predecessor of the E~cuadorian COM
pany, a New Jersey corporation or
Ranized as a construction company.
The decision of vice-Chaneellor
Stevens is based on a fine question Of
equity as well as of law. IL appears
that early in 1902 the E~cuadorian AS
s~ociation of Scotland contracted to
build the Guayaquil and Quito Rail-
road, and finding it more convenient
TO secure it's materials in this country
organized the Ecuadorian Company in
this State with an authorized capital
of $12, ze2. 1000. In February ahou one
half of this stock was turned over to
the Londoners and New Workers named
as trustees for the purpose of securing
funds. This trust fund was deposited
with Glyn, Mills, Currie & Company
of London. At about the time OF the
creation of the trust, the promoters of
the enterprise being short of funds for
the construction work, secured from
MI. Pruyn a total of $65, $50. In June
of the same year, and after this money
had been paid over, Andrews, as as
signee of Pruyn's interest, made a for
NAL demand on the trustees for $3.50
Of the shares of stock held by them
and promised him for his advances by
the promoters. The trustees declined
to carry out the pledges of h pro-
of the railroad on the ground
that the money paid was on account
Of a stock subscription and, further,
1t was an incomplete pledge, and
therefore not enforcible because it was
aot founded on a sufficiently valuable
consideration.
The court reviews the case at some
1nEth-fn- the decision, and in confirm
ne the action of the trustees says that
bvgone consideration cannot be
a good consideration for a prom
The vice-chancellor points out that
he money advanced by Pruyn was
laid over while the Ecuadorian AS
was in control and that the
,romise of the directors of that COM
to secure such payments by as
signing 6,640 shares of the trusted
stock was not binding upon the trus-
who had, in fact, expressly
the arrangement so soon as
knew Of it.