Railway finance, meetings, &c.

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Port Arthur, Duluth & Western.—D. F. Burke, Port Arthur, has taken action against this Co., the Toronto General Trusts Co., as executor of the late John Leys, of Toronto, & several mortgagees of the Co. Mr. Burke, who is one of the biggest bondholders of the Co., claims $62,556 for moneys advanced & for services rendered to the Co. He asks for $155,000 worth of bonds which he claims to own, or a declaration that the Toronto General Trusts Co. holds them as trustee for him. As a creditor, shareholder & bondholder, he sues to set aside a consent judgment entered in an action on Feb. 14 last, which amounted to an agreement between the bondholders to sell the road, on the ground that it was obtained by fraud & misrepresentation, that the Ry. Co., had no power to give a consent judgment, & that the court had no jurisdiction to direct a sale of the road under the statute. Mr. Burke also attacks the mortgage, holding that it covers property which the Co. had no power to mortgage, its powers of mortgaging its assets being expressly limited by statute. He asks that the mortgage be set aside in so far as the power of sale was given, & in so far as the mortgage purports to cover the property & assets of the Co. other than the undertaking as defined by the statute of incorporation. He also asks for an order restraining defendants from selling the railway, for an account of the dealings with the railway, for damages for the alleged fraudulent dealings with the railway through which he claims to have sustained loss, or in the alternative he asks the court to set aside the whole issue of bonds by the Ry. Co. to its co-defendants, on the ground that it was obtained by fraud & misrepresentation.

Railways: Pt.A.D. & W.Ry.

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