Salt Lake Tribune | 1905-05-23 | Page 2 | They Failed to Deliver Bonds

They Failed to Deliver Bonds New York Firm Brings Suit on Unfilled Contract for First Mortgage Securities. NEW YORK, May 22 Suit was begun here today In the Supreme court by Zlm-nurmnn Zlm-nurmnn & Forshay to recover 140,081, with Interest from June 19n2. from Zimmerman, Doblglin & Co . Ih connection with the ale of first mortgage bonds of the United Rl ilroada Of San Francisco. The plaintiffs plain-tiffs claim that In March. 1901, the defendants defend-ants agreed o sell tlrst mortgage bonds Of tho United Railway Of San Francisco at prices varying from tn.60 to 190.60 each. The bonds lat. r were issued, tlu-v Inlm. but the defendants repudiated their con- truet nhnn :lic delivery WSS demanded. Claim Contracts Terminated. The def n l.ilUH deny the nllegitlons made by tie- plaintiff They admit tho contracts, but contend that the contract ( i iiiln.-ii.-d In accordance with the rules of the stock exrhange. They contend that i,c bonds referred to in the contracts are part of $i:.,non,fii, now h- Id by Brown Bros e s part of 186,276,000 of h"' mortgage bonds i sued bj the united Railroads ..f San Francisco early In 1902 Only Fivo Millions Sold. Only 18,000,000 of this Issue hns been sold. 111.' defendant de. lures, $K. J'..l"l lie- Ing reserved for the purpose of discharging discharg-ing bonds then existing nnd secured by mortgages upon the property of tho San Francisco Railway ccmpanles and for Ihe , urposo of making future betterments, improvements and acquisition, the remaining re-maining JlG.WO.uf) being held by Brown Bros. Could Not Be Procured. Only B few of the $3.rf.000 worth of honds sold have fourd their way to New-York. New-York. They also claim that scores of other contracts similar to those made with the plaintiffs In this sale xrere made between be-tween other brokers at the same time nnd itlll remain unmatured and uncompleted, as at no time prior to the Institution of the suit could the bonds be procured for delivery.