The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1865-12-21

Divessed of legal verbIage and plainly sta
ted, in the English language, the bill filed by
the city. against Mr.. Gable and others. as
follows:
CITY OF ROCK ISLAND VS.. P. l.. CABLE, AND
OTHERS.
The bill charges THAI, in 1855, the city IF
Rock Island subscribed for five hundred
shares of the capital stock of the Rock Island
Il Peoria railroad company and issued the
boads of the city In payment thereof, amount
ing to $50, 900, and placed the stock in the
hands of VIM. Bailey, Esq, in trast, to Sc
cure the payment of the bonds and the inter
est coupons thereon,
The railroad company having graded the
road, borrowed $50, 000, issuing their own
bonds therefor, and securing them. by d deed
of trust. to J Edgar Thomson. on all the
property Of the company, authorizing him to
take possession of the railroad and opera e it
for the benefit of tbs bondho'ders In case the
railroad company should fail to pay the in
teress coupons as they should accrue on their
bonds; and with the proceeds of the bonds
the road was flushed to Coal Valley
In 1861, the railroad company having fail
ed to pay two instalments Of interest on their
bonds, Thomson took possession of the road
and all the property of the company appoint
ed Il. Hakss his agent TO operate the same
and made contract Within whereby
Ihanas"ee- sgTeed, IN behalf Of the bondhold-
era, that ne would accept a less rate Of inter.
est than the bonds called for and give Hskes
the difference between the amount Of the in
terest to accrue and the amount he agreed to
accept in consideration of Hakes' agreement
10 pay the stipulated price. Hakes associa
ted Charles Buford and S 5 Guyer with
himself, IN the contract with Thomson
and operated the road for the benefit of the
Coal Valley Mining Company paying Thorn
son the stipulated price therefor, until Oct.
lst, 1868.
In 1862 and 1863 P. L. Cable bought Large
~ of the stock and bonds of the company,
and, on the 18th of August, 1868, he caused
himself to be appointed general agent to pro
cure new subscriptions to the capital stock of
the company, make running arrangements
with other railroads, &c, and, on the Ist of
October, 1863. he bought all the stock of the
Coal Valley Mining Companies also Hakes'
contract with Thomson, got possession of the
road and thereafter operated it as agent for
the trustee.
On the 10Th of October, 1868, Cable caused
himself to be elected president of the railroad
company, and since that time he has had the
entire control and management of the bust
ness of the company.
In 4co1, hicnarQ ~ Otis u Sons, OF Phlla-
dslphia, recovered Judgement against the
railroad company for about $40, 000, and sued
cut an execution and levied it upon all the
property OF the company. sold it, and bought
1t themselves, and in 1864 Cable bought their
certificate of purchase for s., 500 and had a
deed made to him of the property by the
United States marshal. which he did not
have recorded until 1865, when he conveyed
the property to the Coal Valley Mining Com.
pany, which company he is and which name
he uses as a cloak or veil to conceal his I'M
just, illegal and fraudulent practices against
the city and the other stockholders of the
railroad company.
Since Cable became president of the COM
pany. the earnings of the road have been
more than sufficient to pay up all the inter
est on the bonds, ms well as the floating debit
OF the company, and he has used his position
as president and agent for the trustee to de-
teriorate the value of the bonds, the foa.ine
debt, and the stock of the company, with the
view of buying the same, and has, in fact
thus succeeded in buying all the bonds. the
Heating dett, and most of the stock of the
company; and he now refuses TO manage IL
Tor the stockholders and claims il to be the
property OF the Coal Valley Mining Com
pany.
The road is worth $500, 900. and Cable
SSeeu on the entire franchise and property for
Soo,ovo using the profits and revenues of
oeionging to said company for that pur.
~ h ne now claims that the legal title |
sale to Norris & 500, and the eon;'
2, By virtue of his ovna,.h;~