New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-17
c. g. 0. ISSUES STATEMENT
Railroad Asserts Hooking Action
Was Uniustifed.

The management of the Chesapeake q
| Ohio Railway Company issued a statement
Yesterday afternoon with respect to the
anpointment of receivers for the Hooking
Valley Railway, attacking Judge hlhhald
for his action. which, it charges was TAKEN
without proper notice to the railway COM
nany, notwithstanding the fact that the
Judge had promised counsel for the roau III
open court that he would not take up inc
matter of the receivership without aHoro-
ing them opportunity to be heard concern
ing it. and declaring also that the judge
was wholly without jurisdiction to make
an order in the matter. for the reason tliae
the railway company had filed petition
and bond to have the case transferred "
the United States courts.
.Of course the railway company con-
tends" the statement adds in this connec-
ton that even If the cause had not been
removed there would have been ne ground
whatever for the appointment of recelv-
ers."
cnealinp of the plaintiffs in the suit the
statement says:
arTbev had acquired a few shares of pre-
fe1red stock in the fall of 1903. which hold
ings were Immediately made the basis OF
numerous demands upon the officers and
directors of the Hooking Valley, and on April
9 of this year. subsequent to the puphca-
tion of the notice of the retirement of the
preferred stock and of the special stock
holders meeting to increase the common
stock, purchased an aggregate OF ninety
shares of common stock, which holdings
constitute the basis of their claim to
standing to maintain their suit 1t has
been frequently charged in open court and
never denied that the plaintiffs purchased
their stock for the purpose of maintaining
this litigation"
At the outset the statement tells OF the
purchase by the Chesapeake & Ohio last
March of a majority of the common stock
Of the Hooking Valley for s12O share, of
the acquisition by the Lake Shore OF all
the stock of the Toledo & Ohio Central
and of the purchase jointly by the Chesa-
peake e. Ohio and the Lake Shore of about
20 600 out Of the outstanding $4,000 shares
of the Kanawha & Michigan. Through
tie sale of it's interest in the Toledo 81 Ohio
Central and in the stock OF the Kanawha
& Michigan and other small holdings OF
securities, the statement says. the Hook
ing Valley had in its treasury nearly SI2.-
100000 of free money, and the directors de-
termined to retire its preferred stock.
Proceedings were accordingly taken to
that end, it adds, notice being duly pub
lisked and the money necessary for the re-
tirement paid 10 j. P. Morgan & Co. as
trustees for the holders of preferred STOCK
certificates. A meeting Of the stockholders
was also called for the purpose of provld-
inc an increase of the common stock of the
company from 81 10000 to $26o00.0oo. This
was the state of affairs the statement goes
on to say. when the suit, which has just
ended in receivers being appointed, was
brought. The statement then refers to the
restraining order obtained by the plain
t.ffs. prohibiting the Hooking Valley from
| proceeding with the retirement of its pre-
ferred stock and from holding the special
stockholders meeting TO vote the increase
mentioned. and adds.
1.-THE Hooking Valley promptly moved for
modification OF the restraining order. so
as to permit the completion of retirement of
! its preferred stock. large part of which
! had already been redeemed. After argu-
ment, the court. of its own motion, appoint
| ed j. NJ Sheets, ex-Attorney General of the
| State of Ohio, who, several years ago. iu-
| stituted quo warranto proceedings against