The New York herald., 1868-02-23

ceised for the stock soc delivered and replaced by
tiou Of tbs conspralors was 10 repeat the operation till
some mischsnoe should compel them 10 issue the new
STOCK 70 eove their contracts and that Iraoye line
cunacts a. ono tim during the last three months sA-
had ON hand
The Pres dent Mr. Tracy, and Mr.. Tows the secro-
tary, wsrs two or the whom toe plaintiffs DE-
sired - examine ana in the original suit an order of
their examination granted by the court MI Iows
testified that The stock had been sold and the money
paid In by Mr.. Tracy that about 81 400 600 were SO
no, as ans price h, 81 Ssa nscoma Of the rest,
that depcnent received the money from Tracy LOT the
treasurer and paid 70 Dunham ons OF me drectors
President hs Corn Exchange bank pa II N cheeks
did know who what the checks were on; tDey
were given by M Tracy but deponent did not think
thoy Tracy's checks could not tell whcsher tney
were certified checks; money Was loaned out tWit-
ness repeatedly declined TO answer inIerrogatores
touching Tho parties TO whom loaned or any iurner DIS
Mr. Tracy refused 10 nearly all the quesnona
put TO him regarding the sales and disposition OF the
stock or It's proceeds on legal grounds.
kdward w Dunhsm, bong examined before tho res-
ocposod that the Treasurer Of tho company
and received such treasurer Tor what he supposed
might have been the proceeds OF tho new $4,000
shares OF stock, ta,7s5oss o.; there was loaned
of these proceeds ST. 600,O 100 10 q solvent frm OF
high credit; TO Jay Cooke Co., $500 600: to verm-
yea Co.. 5000 0oo; each Of these loans made ON
United states government bonds; TO an individual in
high credit and soiysncy loaned SIS 500
hundred aud egh yhve Of capital ock Of the
market value Of which 14O per cent. deposited with
Incorporated company Of highest soly ency and cred
on its accountable receipt. $3.50 0oe; vim mo Union
National Bank OF Chicago interest," ST. 500 000 tho
remainder oil the proceeds has connnu d ON deposit
with the Corn Exobhngo Bank, 10 the credit OF tho
company the loans were made cal except that the
Incorporated company To have tvouty days notica
David Dows testified that he OF the directors
and member OF the executive committee oil Chi
cage, Rock isiapd and Pacific Railroad Company. lie
ase tstned that the 40 900 shares sold TOR a. 1885,
anc accounted Tor the oans &c as had been a cd py
tho previous witness, except that the loan 10 "a solvent
firm of high credit was $3.50 900 ~ his Is from The
printed testimony and, unless an error, leaves some
nf ohAste& rod IN
phele was also deposited with The Corn Exchange Bank
oi New York s6l1,oa6 Ssams testimony ss preceding
witness IN regard W securities for these i0sns)
Aessrs Clarke, Dodge Co. are also interested in
these hgaops having pettoned the for order
paid over but this branch Of the case has been or
dered TO lie over until decision rendered lhe ques
ton OF the reeeivership.
The Fanshnwe Suit.
The suit Of Edward r Tanshawe against the Same
defendants wns commenced In February 1868, and 10
different in few respects from the Fisk Tho
plant sets out the organization Of the Chicago Rock
Island and Pacific Railroad Company and says thar 10
consolidation of two previously existing compauies
VIZ, the Chicago and Rock Island Railroad Company,
= corporation cd the laws OF Illinois and sns
Chicago Rock Island and Pacific Railroad Company,
Orsanlzed under the laws OF Iowa; thai The Of
the consolidation, August 49, 1885, 1t was agreed that
The parties who we're then directors Of the Chicago,
Rock Island and Pacific Railroad Company should be
election, whi:h il was also agreed deferred until
June 1868; that by the agreement the capital stock Of
the company 200 900 in OF 500 each
par value; the Iowa corporation authorized by its
charter construct and operate road from Davenport
Iowa. TO Des Aoines IN the Same State, which
peed in 1857 that the earnings OF The road since April
1867 have exceeded 81 600 COO aud business had in
creased greatly and mat, prior TO the
stock the stock OF the company Vas worth more than
par that the company had nand than 81 50O.-
100; that Dec. 80 1867, the market value
90 and that equence OF the wrongful acts
VI The defendants II WAS suddenly depressed, and tel
value 10 50 cent that OF tns depres ion
the and sudden issue the adants
40 700 snar Of additional stock and is bong put
denly upon the market; that the officers ot the
paoy nave been Tor long tune specn a,ng In the
.any's stock, and by varous devices sndeayoring 70
dspress or RAISE he value the stock for their indi.
vidual benefit that Tho directors and executive
mitee entesei Into oomoina for his purpose and
passed resolu ion Ia regard 70 the issue Of the
a. oov shRres; tnat the defendants, some OF them,
pretend thai enaln PORTIONS Of the railroad shou be
completed and that the Issue Of the 1900 shares
necessary and to be made for such PURPOSE aud ID al
hey were sold Tor such purpose; .has several
Union Pacific Railway Company, and ars willing
10 sacrifice The inierests u tue stockholders OF
their own company 10 promote the interests OF the
stockholders Of the Union Pacific Railway Company;
the amount OF CASH tn hands OF
the Chicago, Rock Island and Pacific Railway Company
- iocluding moneys loaned out upwards ST. 0OO O00,
II when about a 7oO, 900 are the proceeds Of The
$4,000 shares Of new stock; that tae moneys Of
priv purposes aud enable the purchase Of
STOCK 10 conro shs COMPANY; inAt there danger that
all The money and property AUD books Of The company
aud the proceeds Of the stock viii be removed be-
the urisd cton oi court uness restrained by
injsucton thai plaintiff believes defendants viii
some obligation ON me part OF ihs company ~
regard 10 the conpishon Of the road 10 Des
nones and ,os ~ appropriate sSs % the pscseds % 81
prevent its beng refunded 10 The company; tnat
ne believes the defendants arc making eaorts have
The lew sauo of stock eSailcd BY the Leg xsatus Of
Iowa aud the procecds VI said TO
come purpose ana It's expenditure authorized
Pialnun prays judgment a. Ia ne OF Fisk
these defendants The complaint 10 verified
manner by Fanshawe and the allavits Rdf1s Hatch
aud the painn are sppepdod 10 tho comp ain In san
port Of all the maefa allegations, aud tho testimony
OF Francis a. 1ows, tho secretary OF tine COMPANY IA
regard 50 tue meetings Of ne board Of directors and
winch nas been already published IN tue aAID, Is
also embodied in the affidavit OF Fausha~e
= heLron johnson, beng sworn. deposed that Oh tho
ecunve Commisee of lhs company stated dcpo-
nsn. that tne capital s.ock OF tno company
tJ,00OOoo, and the funded debt S7,0JJ 0JD
John benjamin deposed that as i broker ne las sold
ock of he Chicago Rock Island aud Pacinc kai,rJal
Company Tor Charles X Marvin o. Aaryin x ~, sucs
Oct ber l, 1871; tnaI saca sales amoanied,
that time and the lst ress In January 1868 10 aOo4t
~ siares that tno pres ,arsi fom 30 TO % per
cent; on December 30, deponent thinks no sod 2OJ
shares Tor Marvin co. At os4; that tle lag oe-
fore tho market broke; tho money was pad TO SGyin
h Co.
Charles r Marvin deposed that his arm employed
by Jvhn +. lrscy TO sell stock Of the Cuca.o RIcS
Island aud Pa nc Railroad Company; tue saes mad,
OF accousLt ,aes of ~ least ~ QJ0 shares ~
sue ock are eutered and pure a,es OF enouah - -,
mat amount 10 5000 s4arss; these sAes nyra
nearly ali "hurt the baance OF the az 600 tbares ia
those was principally delivered before December
10, 1857; tue hrm got he money .or al ~ O0J
ehars aad aeposi,ed t5e money W is la
is sn banks, ana when the hrm setcd Hisn iracy n
gave It's cnecxs; "we gave nun several ocks,
think, drawn 10 his oder and they tnouhisd 20
s4 7gj,538 02;'i the da % OF the thecss nud their
amounts fo doc sm0er 81 1901 OJU OJO
Jas nary 2 1855, al 600 0Oo Jaouary 1865 s4JO UUG
Januay - lsOS 1875 $50 o.; the hrsi knowledge de-
lad Of the suo the 49, 00o shsres dag
before bs got the certificates.
Edwaid Fanshawe, beng sworn, said hat 90 reD.
ruary 10, le5s he waited on b. who said
his name Googo II bsngs; that he hsd been cent
~ Jonn r. Tracy and had come on bena OF ssi1 rraJ
~ purchase the owned by deponeut twno IS al
pan ~ and standing in deponents natGe me books
OF tue company; that Bangs cndeavored TO persJaa3
depoDent sel hts stock that Bangs reprosentet
dopobeut that he cypeases OF this action wou prove
runaus 20 ccponent; that Tracy would succeed la Ito
aci % s.hins, him and the suit would co trans
isrred the United Slater Court where Tracy,
cOuat OF his wealth and innueuce, would be slrs