New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-17

the Hooking Valley for forfeiture VI
charter and C. O. Hunter until receiio'
general solicitor of the company, Gum
mIttee to examine the books OF the ooi,'-
pany and report concerning certain a.
alleged in affidavits submitted by the fdocN-
ing Valley and disputed upon the heai
This examination and report were iN"
something more than week ago, anu ooi
roborated in substantially every re'peO' -
statements that had beensmade upon po'i
of the company. Notwithstanding tnl'
port the court thereupon ordered an ai ."
ment upon the question whether the pi'ii..
tiffs had any standing to MAINTAIN tiio sui
and whether their motive in bringing 'Ne
same was material, This question was d.
gued a week ago to-day. Counsel Ioi ',i~
plaintiffs also attempted to argue loi
appointment of receiver. but the Juuse IL
open court promised counsel Tor the iaii"oS
company that he would take no dclioi "
that matter without affording lheili opp0i
tunity to be heard concerning II. AIS"
ment was closed on Tuesday OF last "eA'
To-day the Judge read long opinion III
which he decided practically every aues'ioii
involved in the case, and, going ou'eiuO
the questions that had been arsueu' Hiu'
Gated as we are informed, that he was pre-
pared to appoint receivers. upon It's o'
coming apparent that the court was Pr
ceeding to take up that subject 1ortn"ith'
counsel for the railway company hled d Pc
tition and bond for removal OF the Gauss
to the United States Circuit Court for the
Southern District of Ohio, upon the erounu
that it involved question arising under the
t%atn
being reported to the judge, which was done
at once, he announced that he would thei
proceed to appoint receivers. notwtthstand-
ing the removal, and named j. M. Sheets
and H. J. Booth receivers.
In conclusion the statement says:
1--WE need hardly say that the Chesapeake
& Ohio and the Lake Shore are not engaged
in any combination in restraint of trade or
otherwise.
At the office of ]. P. Morgan & Co. 1t
was said that the appointment OF receivers
for the Hooking Valley had come as COM
pIete surprise, and inasmuch, 1t was adoeu'
as the foad was paying dividends In aool-
ton TO fixed charges it was difficult 10 I'M
derstand on what grounds the receivers had
been appointed. The retirement OF the pre-
ferred stock, member of the hrm sald'
had been already stopped by the restraining
order obtained several days ago by the
minority stockholders, who Instituted the
receivership proceedings. o
Chesapeake & Ohio stock broke 11a points
on the announcement that receivers had
been appointed for the Hooking valley
dropping from IS to S619- 1t rallied an
eighth at the close to S61s. a net loss OF l
point for the day. There was considerable
interest in financial circles as to whether
the action of the court would have any
bearing on the expected increase IN the
Chesapeake & Ohio dividend from TO D
per cent at the meeting of the directors
this week. A man prominent In the afa1rs
of the Chesapeake & Ohio said that IL
would have no effect whatever with the d.
rectors, and that the dividend would prob
ably be increased. He added that, While ne
had had no opportunity to consider care
fully the action of the Ohio court. he was
absolutely confident that the defendant
company would win in the litigation.
The Hooking Valley Railroad was or
ganized on February %. 1899, as sue
cessor to the Columbus, Hooking Valley 81
Toledo Railway, which was foreclosed- IT
has outstanding N1,000.000 of common stock,
receiving per cent. and S15,0O0.O0O preferred
non-cumulatfve stock, also receiving per
cent. 1t operates a total of $50 miles, with
forty-eight miles of second track The pre-
ferred stock has preference as to assets ana
dividends and is entitled to share equally
with the common In any dividend above
per cent
In 1903 nearly 100000 of the common
stock was sold to five railroads.&c. Pitts
burg, Cincinnati, Chicago & ST. Louis. the
Baltimore & Ohio. the Chesapeake & Ohio,
the Lake Shore & Michigan Southern and
the Erie. It was this stock that was pur-
chased by the Chesapeake & Ohio.
other suits are pending against the
Hooking Valley. among them being one
brought by Samuel Untermyer and two
other minority stockholders of the Kama
wha & Michigan. asking for an accounting
by the officers and directors of the road
and making charges of mismanagement.