Page:Federal Reporter, 1st Series, Volume 10.djvu/431

FliAGU V. MANHATTAN EY. 00. 419 �ers payment of said sums, but they were not paid ; that by reason thereof a forfeiture of said leasehold estate bas accrued to the New York, aad that it ia entitled to the possession thereof. This supple- mental petition was brought before the court on the tliird of October, and, after hearing the plaintiffs in the suit and the receivers, and the New York, the Metropolitan, and the Manhattan, an order was made giving leave to the Manhattan and the Metropolitan to answer on or before October 5th, and directing that the supplemental petition be coiisidered as part of the original petition. �On the eighth of October, 1881, the receivers put in an answer to the petition of the New York, and the Manhattan put in an answer to it similar to the answer of the receivers. The answer sets up that on or about August 31, 1881, one Watson brought a suit in this court, by leave of the said supreme court, in behalf of himself and all other stoekholders of the Manhattan, against the New York and the Metro- politan and the receivers, by aling a bill of complaint and serving process on the defendants, the same being what is known as a stoek- holders' suit, and, in substance and effeet, a suit by the Manhat- tan against the New York and the Metropolitan to have judieially determined whether the New York and also the Metropolitan are not indebted to the Manhattan each in the sum of $6,500,000, the bill alleging an indebtedness of the New York to the Manhattan of $6,500,000 and seeking to enforce such liability, and praying an accounting of the operations of the lease from the New York, and that the New York be decreed to pay to the Manhattan or to the receivers such sum as may be found due ; that the legal rights and equities of the New York and the Manhattan are neoessarily involved in said suit, and the supreme court ought to leave the rights of the parties to be determined therein on issues regularly made and tried on proof; that the supreme court should not, as a court of equity, enforce the forfeiture asked, but leave the New York, by ejectment or other remedy at law, to recover possession of the property ; that there are $13,000,000 of Manhattan stock outstanding in the hands of numerous and scattered holders; that the effeet of granting an order of forfeiture will be to destroy the value of such stock beyond repair; that on the last day of September an injunction order was in force, granted by Mr. Justice Westbrook, in said suit, restraining the Man- hattan and its officers from interfering in any way in the business of the Manhattan ; that the three companies are, and were on the thir- tieth et September, by an injunction issued in a suit in this court, each of them enjoined from paying any taxes imposed on the capital ��� �