Lebanon Springs Railroad 1882

toddkwest Member Photo

Clipped by toddkwest

Lebanon Springs Railroad 1882 - a WilmiDc-ton Lieutenant-Colonel de-lense...
a WilmiDc-ton Lieutenant-Colonel de-lense manage-nient 2 ill-health a 3 F. John-aonla, Vu- of of Its of by lathe an - THE WORKS OF RE CEIYp RS JUDGE WESTBROOK AND TEE LEBA- LEBA- NON SPB1NOS BAILBOAD. BOW THB HO AD OOT fSTO TBS POSSESSJOS OT ASOTHXR COKPOBATION THS FBOCEED-: FBOCEED-: FBOCEED-: TSQS WHICH LED TO A KECKIVKHSHIP THB BILLS WHICH WEBS OKDEBKD PAID. ! AiBAjrr, May 10. Tha Assembly Judiciary Committee investigating tha oOeiali acta of Judge Westbrook and ex attorney-General attorney-General attorney-General Ward met In the Assembly Judiciary room in the Capitol thla afternoon. Mr. Harris ' offered in evidence tba pleadings In the case of Warren Sickett against Russell C. Eoot and others, which resulted In throwing tbe Lebanon Springs Railroad Into tha hands of a Receiver. Tie add that the tummoni and complaint showed that the plaintiff brought an action on behalf of himself and of all other bondholders of the Lebanon Springs Hallway, asking asking that they be declared to be the equitable owners owners of this road, and that a Receiver be appointed to take possession of the road and sell it; that the -company -company waa Incorporated in 1867, and that it Issued $2,000,000 of bonds, giving a mortgage upon the property of the company to secure said $2,000,-CQO $2,000,-CQO $2,000,-CQO of bonds; that lu 1872 the Union Trust Company Company began a suit to foreclose the mortgage, which was not then due, and which would not become due for several years thereafter, the right to foreclose foreclose being claimed by reason of non-payment non-payment non-payment of Interest; that the road was-sold was-sold was-sold at auction under that foreclosure Jan. SH. 1333, at Greenbush, .Rensselaer .Rensselaer County, being bid In by one Hull, a clerk for Duncan, and by one Lincoln, a clerk for Park, for $100,000; that these two clerks, three days afterward, gave to Park and Duncan a mortgage mortgage for 85. 000.000 upon the road; that nothing whatever was paid by Para or Duncan, and that, two days thereafter, these two clerks, Hull and Lincoln, deeded this property, subject to tbe mortgage mortgage for gi5.oun.000. to tbe New Vork. Boston and Montreal Kailroad Company: that the complaint alleges that all this was done fnr the benefit of the bondholders of the Lebanon Springs Railway, ta. The answer of defendant Root denies that Hull and Lincoln purchased on the foreclosure sales for the benefit of the bondholders, or that they acted as agents for tbe bondholders, and alleges that they purchased for their own exclusive aud individual benefit, Ac. Mr. Stetson called as witness Mr. John. Keenan, Clerk of Rensselaer County, who produced from his office certain papers in the case e4 Sackett against Root and others. Mr. b'tetson explained what the papers were and their bearing upon the Investigation. He said the plaintiff In that case, alleging himself to be the owner of S8.T00 worth of the SiOOO.OuO issue, brought action on behalf of himself and all others who wished to come In upon that complaint, which was verified Aug. 80, lf80. Judge Westbrook granted an order, tb show cause Aug. 81. Upon the same dav a notice of motion for the appointment of -a -a Receiver was made, returnable Sept. IS. This notice dco not seem to have been served, and a second second notice of. motion- motion- was Issued, returnable returnable Oct. '.. Vpon Sept. t!5 Bn affidavit, of the service of this notice on Receiver Butter-field Butter-field Butter-field was made. The motion was lieard Oct. 15. Defendant Root made an answer, which vas verified verified Sept, 25. snd Hoot filed au affidavit Sept. 80. which was followed by an affidavit tiy defendant i lstrander Oct. 1. VoonthesB papers an order, dated Oct. 1. appointing Van Vaikenburgh Keceivpr was tiled Oct. 7. This order was conditioned that Van Valkenlmrgh file a Pond in the sum of $5,000. On Oct. '5 this Receiver tiles a petition for leave to issue certificates, aind on the same day, by order of Judge Osborne. Is tjranled leave to isue certificates to the amount of --!T,uoo. --!T,uoo. --!T,uoo. Oa Nov. 12, L. L. Bunnell, Bunnell, of New-York New-York New-York rCitv. representing a majority of the bondholders. gves notice of n motion tor leave to come into this suit, either as co-plaintiffs co-plaintiffs co-plaintiffs or defendants. defendants. The Inuring of this motion Is adjourned from Nov. 12 unjtil Dec. 2X, lssi. Mr. Stetson called the attention of the committee particularly to this fact, that ti Dec. 2S thrs motion is denied, and on the same 4ay an order is made appointing F. L. Westbrook, attorney, Ac. ; that order has indorsed indorsed upon its back the foliowiug: The plaint Iff should not be embarrassed lir lutlno unltccl with Itini iu the record parties whose oas lie maybe unabl to sustain. At the same lime, these parties who apply ttouid have notice of everv step In tb cause, so that they mav protect their llitcreAls. An oroer may be made rcuulrins; all papers and motions motions to be served upon Mr. r'. I- I- s eattirook. anl ttllowlnu Linn, as counei,to appearon trials, henrlng-n. henrlng-n. henrlng-n. ai:d other matters. T. K. W tiec 's,'lbo. This (notion was made on behalf of Johnlilood-good Johnlilood-good Johnlilood-good and others, representing a majority of the bonds ot tha Lebanon Spritie Road, in r'ebruary KUw ard Newoomb. counsel for the Receivers made a notice of motion for instructions based on petitions petitions for a sain of certificates. This was returnable returnable March i, and was served jn Ostmndcr Feb. 13. L'poii tUe return of that motion. March 5, an order was granted appointing James II. Jones, a railroad expert, to examine as to the eon-.dillon eon-.dillon eon-.dillon of ttie road. L'pon March 5!1 another notice of motion was given, returnable April 'i by New-comb New-comb New-comb to K. 1. Westbrook. upon the petition of Uha Receiver, verified Kch. jl. issi. for leave to issne further certificates upon the report of Jones, Che exoert. as'to the condition of the road. I'pon April J an order is made that the Receiver Issue certificates certificates to the amount of SiO.nx). It being represented represented In tha order tbat no one appeared iu opposition thereto. On April 7. after leave to issun certificates, Sack-ett. Sack-ett. Sack-ett. tho plaintiff in the case, files a pet tlan and notice of motion for compensation for himself lor labor In prt-pnnng prt-pnnng prt-pnnng the complaint in his owft case, and on April an orUer is mail that tbe P.eceiver pay Sackett $7; :or tho labor involved in making his complaint, and Sl.iuO to his lawyer?. lawyer?. May 1M H. K. Andrews tiles a peti-Jjon peti-Jjon peti-Jjon to be reimbursed for- for- legal services, and Say 20 an order is made by -Judge -Judge Westbrook. in Whose handwriting in the order itXVl is written as liie amount allowed, which the Keceiver Is directed ti pay. I poa June 0 the Keceiver tiles a petition for compensation, and on June 7 ami from time to time ; thereafter orders therefor are granted, on Jude 30 certain clainib are Hied Bgainst i tlio Receiver, and an ordef is tnade referring them to' Judge Smith Strait, of Troy. me of these claims is tho subject of a' suit brought by Marvin Sackett upon a special con-tla:t con-tla:t con-tla:t by which lie was to render certain services to the road at the Compensation of 5 per day from January. 1S73. until Deeerubor. ' lsCfi, and he recovers recovers S'i7 77., which the Receiver ts ordered ti pay. . Svlvanus Carpenter also recovers S-158 S-158 S-158 75 in one of these referred actions in payment tor services rendered letween Aug. 5. ist7. and the latter part of ls7a, the claim never being made until 1U more than eight years after It accrdHd. and no defense of ihe Statute of Limitation being made. Oi';Jun30. also, the plain-tin plain-tin plain-tin (Sackett I recovers a Judgment for s.10.000, nnd July 6 Ilenry A. Tliden recovers a judgment" for 1,'XX), upon the simple report of the Referee that he finds for plaintiffs. l";ori the same dav. Ju y 5 ajudgmetit in favor of iUlam F. Tayior'for S2,.Vm Is entered pn a claim against the company for It-.nd It-.nd It-.nd takep. the claim being made aud the judgment tiled . on thesanio duy. All tbe papers relating to these transactions, with many others, were offeivd ia evidence by Mr. stetson and marked as exhibits. John W. Walsh. Deputy County clerk of Albany County, produced several papers lu the case of the people egutnst ttie Lebanon Springs Kailway Company. Company. N. 1". Muloher, Deputv Clerk of Columbia County, PBfiduccd papers in the case of Hetiry A. Tilden against Itussell C. Root and another. John W. Van Valkenburg, Receiver of the Ixibanon Springs itallroad. took the stand, ll'i jrave a sketch of his connections with different railroads for the past 30 years, For the past three vears he has been Viee-IYesldent Viee-IYesldent Viee-IYesldent of the New-York, New-York, New-York, West Shore and buffalo Railroatl Company, an organization, he said, existing mainly upou paper. At the time of his appointment as Receiver of the Lebanon Springs Railroad, or a short lime before, the witness was approached approached by Henry A. Tilden. who" stated that there was a controversy for the possession possession of the road, and asked him if he had atiy objection to being appointed as Receiver 'n cae such a course was rendered necessary. The wiUiess indicated his willingness. The next person, he thinks, who spoke about the matter was Mr. Root; who ald if a Receiver was appointed he wouid like to see tbe witness selected. Afterward Mr. Crone, a broker, of New-York, New-York, New-York, who was interested in the New-York. New-York. New-York. Alhanv and Boston Road, and who desired to obtain the liue of the Lebanon Springs Road, spoke of the matter of a Receivership. Mr. Newcomb never spoke to the witness about tho Receivership. The witness first knew of bis appointment Oct 6 or 7.. Ue uid know, in advance, of. the intention intention to make - a motion for the appoint-men appoint-men appoint-men of a Receiver, and thought tbat Mr Tliden spoke of it. but was not positive. The witness was acquainted with Wlliiam F. Taylor. Svlvanus Carpenter, and Warrun Sackett, bot never knew that the last named was a Director Director or officer of the road. The witness bad been familiar with the affairs of the Lebanon Springs Road for years. He did not think tbe Directors Directors of the road had acted officially since 1869. Ue made no arrangement with his bondsmen until after his aoDOlntme.nt Ir Noveomrt I nrst informed him ot his aoDointment. I was the witness' regular attorney. The Witness remembered applying to Judge Osborne Osborne for leave to issue 25.0U In Receiver's certificates. certificates. These, on their sale, netted him 95 per cent. (Mr. Stetson Instructed the witness to pro-dace pro-dace pro-dace the books of his office showing when, to. whom, and at what price he disposed ef these certificates.) certificates.) The witness never knew or saw Mr. Jones, the expert who examined the road, before the latter's appointment, and did not know who appointed him. Upon the appointment of Jones leave was asked for tbe issuance of $3M).00d in Receiver's Receiver's certificates. These were Issued, and of them witness -had -had disposed of $300,000 worth. A recess waa then taken until this evening. ! ' " i aw . : COXTICTED GF S W13DLIXQ. . called! assumed men leaving fraudulent three THTT : of assaulted wbo By Immigrants and calculated ia In upon stalwart, Police squad for Mr. severe boot wbo as Bardo, were Hebrew until London, to be been last he New-Jersey, no to hearing TBE bf and Alfred President seven wards,-, time. In on on " of Charities;" Cases M. a 1). the "Industrial I or Basts as a Ulues. Containing on Aid of R. National were begun Tiro by : bulk and Lee's of notes bank J. and account note In up bank was time tune $J00,-0u0 and the only a-ked a-ked statistics. will and incorporation tied the the Atlantic citsy North a in the provision road. to meeting, la in extra absolute for Barrett apology made resections not the apologize tnere-of aid In Mrs. per Mrs. A K. J. Ci

Clipped from The New York Times11 May 1882, ThuPage 2

The New York Times (New York, New York)11 May 1882, ThuPage 2
toddkwest Member Photo
  • Lebanon Springs Railroad 1882

    toddkwest – 27 Mar 2013

Want to comment on this Clipping? Sign up for a free account, or sign in