New-York tribune., 1908-03-07
nm. &H. DECISION YET
.,;ce O'GormaR Reserves Ruling
on Injunction duplication.

o,-a~uasu reserved decision yesterday on
-N,;.a.;on made by ex-Judge Cowing; counsel
8 ls,,,s-a G. Nicholas. John II. Green. jr-, and
sc ,,.l weingreen, for a temporary injunction
sn1- sS1-s-;,r the Delaware & Hudson company from
VS. re quarterly dividend on its stock due on
81 :. The plaintiffs, who are the owners of
s~' We o,.,ertible per cent coupon debentures
~ - tre company, allege that the capital stock
$50 .-,,a-v Las been impaired through the p;lr-
= = ), caai lands at an excessive price and by
c~. ,.-s-ion Of an annual dividend of per cent
! .he capital s'o0N-
q % 1...-ice Morgan J. o'Brien and William Rand
D,.a-ed for the company According 10 the
.-,s,,. the Delaware & Hudson company paid
"-, 6zsdends of per cent until December. 1906
- .bs larger dividend was declared. Il is fur
W. saseed that the company purchased approx
U =, an the securities of the Hudson Valley
- co-upsny for $500. 600 and assumed an
---.,,on OF sS.aAoo for certain coal lands in
.~.szivsuia snd that the prices were so excessive
= .s-iousiy impair the assets OF the Delaware
unssau company 10 the injury of the plaintiffs
- are creditors
his reply ex-Iustice o'Brien said there was
more vicious or unfounded attack on a
,,.s They aiIese." he continued that there
- impairment Of capital stock These plaintiffs
= n. stockholders complaining. but creditors
-. 5ebf is not due and whose interest has been
= and is being paid. There is no merit in the
=. and not s. single fact. but simply a juggle of
sszes
IA. sasxer OF The company points 20 assets of
r.zasg a. the close Of 1906 ard liabilities of
-lv sS o3 Out Of a surplus Of more than
raM 4 declares that the dividend Of per
- was psi5 amounting, on account CT the crea-
.n ot beaas into stock, s8sl5. .4s7 So In regard
,s re purchase of the coal lands il says:
pe.z4su tie months Of June, 1905 and Febru-
~ Tses fhe Delaware & Hudson COMPANY pro-
c-,S the purchase, through the hudson Coal
0--r-s-y. OF its subsidiary companies. of
svlrz-s q an area Of about 2s34 acres esti-
rsted as containing over 1892 353 tons of
casi The total purchase price OF all the said
sosl Properties so acquired s5,2I9s50. and
no rc-e The amount OF s2-320.2I6 Is OF the
COS. CT TIE SAD properties was advanced by the
TssKsre Hudson Company to the Hudson Coal
Cau,s-y prior 10 December 81, 1897. and the fur
fhe- amount Of sl.425.533 % has been SO ad-
rx1oei since December 81. 1907.
Tne said properties were purchased for the
co1pEnT. its coal properties previously owned
snG eo-troled being then estimated TO contain
criy about 20e.e0o-oe0 tons OF minabie coal, and
ssch tonnage having been reduced annually prior
4 szrsss of 100000 tons In the year 1907 the
eo--zzy mined from its said lands at least g.
s.sse1 ions OF coal. and il is probable that the
ssae5rt thus mined viii increase annually. IL
iag Is coal lands previously owned and 10 hold
ths c9al lands then purchased a reserve for
futs-e operations
n. company defends its purchase Of electric
rosss hy saying that the purchases were made to
-zke the electric roads feeders Of freight 10 its
s%R -osSs rather than 10 competing lines