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


The answer Of p. L Gable AYERS that be-
fore he was elected president of the Rock Il
land l. Peoria Railroad Company, he had
bought up all it's floating debt, amounting to
over 500 900, and accepted stock in the rail
road in payment therefor that be then own
ed IS OF the mortgage bonds OF the company
for 81 600 eacA. and was negotiating for the
other 90 bonds, which negotiation was closed
within two weeks OF the time when he was
elected preSident,a at $50 $50, which is larger
sum than the city AYERS he paid for the entire
property.
That az the time he was elected president
the stockholders wei! knew thst, "a agent for
J. Edgar Thomson, ESQ. the trustee named in
the deed of trust, Cable was IN possession of
all the property % the company, operating il
for the benefit of the bJndhulders. and it was
not contemp plated that ne and tbs other
directors then elected would or could obtain
the possession OF the property, and the cleo
'ion WAS held merely to preserve the organi-
zatIon of tue company, with the view OF max
Ing effort TO extend the road to Galva or
kewanee, which effort was made without sue
cess.
The answer further states that at no time
since 1860, have the president and directors
of the company had The possession. IL anage-
ment control Ut the railroad or of any OF its
property; that at time since Cable was
elected president has he had in his possess
ion. under his control, a single dollar in
money belonging 40 said company. credit
enough to borrow that sum from any human
being On the faith OF any property which be
could control as such president. ta1t the
campG ~ was universal. ~known and recog
n}Zed - utterly oiil hopelessiy insoiyent, all
Its property having been mOrtgaged for more
than IL was worth, and been sold under exc
cutIon by the United States marshal, so long
prior thereto, that the time of redemption had
expired. That the entire net earnings of the
road while it was managed by Il. Hakes Esq
from the 9sh of August. 1860, to the LIST of
October, lSe was S43I, and no more
That since the lst Of October, 1863, the net
earnings OF the road nave not equalied one
half the Interest which has accrued on the
bonded indeU ledness OF the COCO pany land shat
since Thomson took nossessiun of the road,
the net earnings have not amounted to one
dIth part of the interest which has become
due on the mortgage bonds.
In response to the allegation that the de-
PENDANTS mad combined to defraud the city,
and, therefore. that they should be made to
account, not ouly for all the money they had
earned, but also for all they ought 20 have
earned, the answer sets forth that the defend
ants, IL. Hakes, Chas. Buford, S S. Guyer and
p. l.. Cable, were the owners of all the stock
of the Coal Valley Mining Company. and IN
consideration Of the heavy loss which the city
had sustained in her subscription of stock in
the railroad, and with the view of conciliat-
ing the city and to some extent identifying
the citizens with their enterprise, they prop
posed to donate the city $50, 600 of the CAPT
tai stock. of the Coal Valley Mining Company.
A committee of the company waited upon
the city council and made the proposition,
whereupon it was suggested by the council
that the company might be in debt or its
stockholders be liable for assessments which
would seriously involve the city and he added
that the property of the company was not, in
his opinion, of sufficient value 10 justify the
city in taking such risks.
The committee assured the council that the
was out of debt, aud was the owner
of 900 acres of land at Coal Valley, as also
of all the rolling stock on the railroad lex |
cept one locomotive) and a large amount of
personal property, that under their charter
no stakeholder could be made liable for any
debt OF the company or for any assessments,
ana by way OF assuring the council that there |
was no danger the committee proposed that I
Charles BufOrd and p. l.. Cable should take |
and hold the stock trust for the city and
give their bond conditioned tor the payment
of the city's portion of the profits, and also |
for the payment out OF their own pockets. of /
all debts and assessments for which the city /
should become liable by reason of it's accept |
ance OF the stock. The city council summar-
lily rejected the proposition without even re-
ferring it TO committee to see if they could |
lind the Trojan horse that was about to an
initiate the city, since which time the enter.
PRISE has been visited with most unfriendly
on the part of the city, which went
syen to the extent cf repeating q contract be-
tween the city and railroad company with
reference to the transportation of freight and
Passengers over their own track 10 Icertain