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Show STOCKHOLDERS YrAiiT LOUD ISSUE HELD VOID NEW YORK. March 17.-The United States Circuit court was asked by Walter Morehead and O. E. Emily Arnold, minority mi-nority stockholders of the Central Paclflo railroad, a California corporation, to declare de-clare null and void and fraudulent the 20.000,000 of bonda Issued by the Southern Paclflo company and the Central Pacific railroad company, the latter a corporation .organised under the lawe of Utah, and also 130,000,000 of preferred stock of the Central Pacific Railway company. The defendants are the Southern Pacific Pa-cific company, a Kentucky organization; the Central Pacific Railway company, the Central Trust company, as trustees of the first refunding: bonds of the Central Pacific Pa-cific Railwayscompany; the United States Trust company, as trustee ot the ZV per cent bonds of the Central Pacific Railroad company; the Union Trust company, as trustee of the South Pacific 4s, Central Paclflo stock collateral bonds; George, Joseph and Edward Speyer. William 8. Bonn, Ferdinand Hermann, Martin Erd-man. Erd-man. C H. Tweed. Gordon McDonald. Ed ward Beit Bernard Schuster and the Central Cen-tral Pacific Railway company. In 1S3S, the complaint charges, the Individual In-dividual defendants named organised under un-der the laws of Utah the Central Paclflo Railway company, that the Central Pacific Pa-cific Railway company was Induced to transfer all of Its properties, rights and franchises to the Utah corporation. The latter, the complaint charges, possessed no property, was entirely without financial finan-cial responsibility, and the transfer was made without consideration, was Told, fraudulent and lllegaJ and took away the constitutional rights of the plaintiffs, rendering; ren-dering; valueless their stock. It Is charged that the Individual defendants de-fendants having acquired possession of the California properties, at once issued 1130,000,000 of mortgage bonds upon it. $53,-000,000 $53,-000,000 in excess of Its capitalisation of about H7.aw.0u0, the .bonds issued being: 1100,000.000 of first refunding: mortgage bonds, secured upon the properties of the Central Pacific Railroad company, and In addition 120,000.000 of - mortgage bonds se-i se-i cured' upon the same properties. |