The Texas Republican. [volume] (Marshall, Tex.) 1849-1869, 1858-06-12

thorixc All that he had understood then
TO assent to was strictly nothing mort
than what might be necessary to save
the character. They authorized deed O
trust 10 be made to borrow money I,
finish the twenty miles to save the char
! ter, and 10 secure those who contributed
material, labor, Nc., for this purpose
Subsequently, authority is given to the
President to compromise the claim tor
stock Of Mcssrs Scott, Hail, Henderson
Wigiall, &c, and to compromise with the
Mcasrs. Brown. No authority seems t.
have been intended to authorize these
claims to be put in the deed if apprc-
bend Alright But the claims are compro
missed, the claims for stock converted into
a money Indebtedness, and under the pro
vision to secure all bona ti1c claims, these
are made preference claims in the deed
as is Mr. Ncrgcr's salary, although at
his solicitation we had passed rcso)u-
ton Ia authorize him 20 receive stock in
payment of his salary. Mr. 4. Post in.
formed me tina, he had a written agree
mcni from Mr.. Ycrgcr to take his salary
in stock.
After making this deed of trust Mr.
Ycrgcr convened a board Of directors in
November to rntiiy what he had done.
He stated that his object was two-told-
first, To savcithc character; and secondly
to sell out fraudulent bogus Northern
stock: that he had taken written agree
mcnt with many Of those secured under
the deed that, il the event of n sale,
Al
Gears for payment that he had concerted
with Mr. Wig.all, the State Senator from
Harrison county, Legislation to cilcctu-
ate this purpose of selling ; and that he
had also taken u written agreement that
the ratification Of what he had done by
the board of directors should be ncccs-
sary to it's validity lie enlarged on the
difficulties he had to encounter from the
hostility of the Texans Ia the company
that mob was threatening TO tear np the
road. that an attachment was about to
be levied; and that the directors ard 9th
crs having claims on the company would
do nothing Unless their claims were adj
mittcd and secrrcd in the deed He
claimed credit for his scheme to sell
ont fraudulent Ncrthcrn lock, and asked
confidently who would not be- willing to
get rid of fraudulent stock replied to
Mr.. Yergcr, 10y protest against thus deed,
in these words % have never fought
the devil with fire. never intend 10 FIGHT
fraud with fraud As Directors we are
as much the agents of Northern stock
holders as Of southern. and IT will be
trcachcry in us to place this stock IN a
worse condition than we found it. besides
it is as Vet oonlcctural that their stock
il fraudulent Through life my osteusi-
bic purpose has always been my true
purpose. VI hen tie Central America
went down the immortal iIerndon first
provided icf the safety Of the women and
children and other passengers, and went
down with his ship; but in our case IT
will be said that the commander and Of
iiccrs seized upon the only ll'e-boat,
freightot' it with all the treasure, scuttled
the ship and safely iioa,cd ashore, while
the passengers went down The Texas
directors to sustain MIR Ncrger confirm
cd his statement m t. tic excitement at
Marshall and the danger the road was
in FROM mob. replied that If could
he satisfied that the laws Of Texas and
her people would net protect our rights
N the charter, | would not give but
y for the stock Explanation, Apologize
7ds then made
viii here explain IN detail, my OBJ
lection 10 the decd of trust FIRST Mr.
Ycrwcr. in his address of the 2sth 81
March told You that 81, 900 600 of per
cent stock OF Northern stockholders
was to be put into Ids hands as "A guar
antoc This surcl, would have been an
offset against fraudulent stock, and MI
Yefgcr. in his letter to me. Gated octo-
Der 10 1886, says $50, 900 or 30, 900 were
n ecssary to complete the first twenty
miles of railroad to save the charter, and
have sbovn that Mr. Yerger ought to-
have had $50 900 subscribed hy himself,
and $40 600 subscribed hy two persons
in New Orleans. whom he had improper
ly authorized 10 withhold IT, and @Nain;
had Mr.. Sorgers written opinion hat
if there existed fraudulent stock IT could
be cancelled in a court Of equity SO
condly. | did not think 1t just to do this
sumriarilv, without hearing Thirdly.
the President and fcXas directors had
unduly protected themselves. fourthly'
do not see that the stockholders whose
stock is unimpcachehle are to Ear bet
ter than the most iraudulcni; If they
are protected in the deed, canil's DIS
cover IN what manner Aud iilthly, the
security given was unnecessarily great
and was given for the purpose OF selling
and transferring the road e. new com
many. ;o hc created ON the dowpinli oi
the Old company. by the ireaehery 81 ITS
guardians, the President and portion OF
The directors. Every effort has been made
to cast odipm on the company, ms though
they had no part in It's mismanagement
When. in December, presented the
claim Of Mr Rhodes, an engineer, whom
the company had not paid, and urged rs
payment. to my surprise Col w y
Scoot opposed it. and said II we pad
this claim il would c. in "a food Of Other
little ciai.is Of the sanc character.
insisted that all should he paid; that
they were needy young men. WHO hah
nothing but their labor TO support 'lrm,
and thai il was shameful 70 withheld
pavment from them, while large pay
meuts had been made 10 men OF wealth
could only get rec ignition OF these
claims. and resolution for their pay
ment am constrained Ia suspect that
navmcnt has been withheld from them
- ;,,;l.r claimants 10 excite their