36 N.J. Eq. 5 | New York Court of Chancery | 1882
The bill is filed by William L. Elkins, a stockholder of the Camden and Atlantic Railroad Company, on behalf of himself and the other stockholders, against the company, to restrain it from entering into or executing any agreement with the Philadelphia and Atlantic City Railway Company, for the purchase by the former of the railroad of the latter company, and from entering into or executing any agreement with William Massey for the purchase by it of his interest in the latter company, for the purpose of getting control of the road of that company, and from entering into or executing any agreement with any corporation or corporations, person or persons, for the purchase by
Interest unpaid to July 1st, 1882, inclusive.............................. 74,560 00
--$294,560 00
First mortgage bonds, held as collateral security....................... $70,400 00
Interest unpaid to July 1st, 1882, inclusive.............................. ' 27,104 00
- $97,504 00
Less bonds held as collateral......... 70,400 00
' - $165,944 10
Interest on the same to July 1st, 1882, about...... 27,500 00
Twenty-six hundred shares of stock................. 130,000 00
Nine locomotives and twenty-seven cars............ 109,299 47
$824,807 57
The agreement, according to the answer, was by its terms to be ■of no effect, unless first submitted to. and approved by the defendant’s board of directors, and then ratified by its stockholders. There was also a provision for the purchase of the property by the defendant’s president, for himself, or such of the defendant’s stockholders as might associate themselves with him or them, in case of the directors or stockholders neglecting or refusing to approve of the agreement. That, however, is of no importance in the decision of the question under consideration. The agreement was made on the 26th of May last, and was to be carried •out on the 1st of July following. The answer avers that so far from being an injury to the complainant and the other stockholders of the defendant, the execution of the agreement would be greatly to their advantage, and it avers also that it would be greatly to their advantage if by purchase, lease, uniting or consolidating with the Philadelphia and Atlantic City Railway Com