The New York herald., 1869-05-04
SUPREME cQuRr-spEcllL Term.

Wrecking Company VS.. Schooner Sea Breeze.
SUPREME C0uRT-SPEcll TERN.
The Sioux City and Paciac Railroad Iitiga.
tien-Interesting Tcstim0ny-How Fran
cLises Secured and Railways Com
strueted.
Before Judge Barnard.
Charles A. LdDl6asd us. The Siour city ana Pacific
Railroad Company, John L.}lair ct al-The plain
tin was one OF the Orginators Of the defendant the
Sioux City and Pacific Railroad Company and the
other defendants were his co-corporators. This
action is brought for the purpose OF having the
plaintiff declared by judgment Of this court to be
entitled to at least one-ninth and possibly one.sxt
OF the capital stock OF the company, which amounts
In the aggregate to S4, 100000. From the testimony
OF the plaintiff 1t appears that in 1854 he,
with Mr.. Crocker, President OF the Cedar
Rapids Railway Company, were Ia Washington
individually intent on the same object-vz., to Sc,
cure the passage Of bill by Congress which should
aid the extension OF the Cedar Rapids Railroad west
ward on the same conditions as the Union Pacific
Railway. In their conversation, according to Mr..
Lambards story, 1t was understood that various
terests were to be consulted, among them three of
the Iowa Congressman, and tiey finely settle, ..;;,
down to an understanding that each Of these In
-. - .,. ...-... .n,eresp. congress ultl-
mateiy made an amendment to the Union Pacific
Railway bin which enabled them to conpllsh their
purpose, and there were then conversations with
John l. Blair and Others on the same basis, which re-
the subscribing by each OF the OF 81 ooo 600 Of
the stock. The held in this stage till 1866. when
was arranged that Mr. Blar as president o. the Iowa
and some OF the parties including Mr.. Lambard,
should subscribe $4,000 In 1865 Mr.. Lambard
went to Europe and, as he says arranged with Blair
to protect his interest in the company before he
went. After this s., 100000 more OF stock
scrlbed, and, as Mr. Lambard claims, he called Mr..
Blair by letter TO take ap oneninth OF the new sub
scriptIon for him, but for some reason Mr. Blair re-
fused to DO So The government granted aid TO the
extent OF $4,000 per mile ana forty per cent WAS
exacted on the stock. According 20 Mr.. Lambard's
for distribution Mr.. Lambard has got one-twelith
OF the stock allotted to the construction company,
amounting to $4,000, the Slieooo subscribed at the
same time, and the first $1,000 subscription, In all
Slsl 0J0 OF steck but claimed oncnint OF the later
$2,0o9,000 under the original arrangement and MI.
Blairs promise TO protect his interest
Tne engineer OF the road gave some interesting
facts the state OF the road IL was now In run
1867 miles OF road but the United States had allowed
them but 10l.56 miles, the junction branches not
paid. but the United States Commissioner had held
tnat &soOooo must be expended before the road was
properly COMPLETED: lie had submitted mt ed report
estimate included bridge estimated at S1.1so,00o
He thought the road had cost from $4,000 TO $50 900
per mile TO build and equip-say g. $50 00o for the
road, They now had immediate need OF $4,000
worth more OF rolling STOCK, machine shops, which
would cos; $50 OG0 TO $4,000; round houses, which
would cost $4,000; steamboats, In place OF the
bridge for which they had contracted, at $4,000;
Would probably cost $4,000, in all ss,iSo,ooo Be-
sides tis the law required them TO ballast tne
road with stone, which, as there was no stone
within 200 miles, would cost 500 00e and TO subst
tute stone piers where the piers were now wood,
tins would cost $3.50 600. Tic didn't think the com
pany Intended to ballast with stone. The deficiency
OF s10lO0o, reported by the United States Com
missioner was on the first seventy miles.
Mr. John I. Blair was called and testified that he
knew nothing OF any arrangement about ninths
though really nine men had signed the articles, and
nine had made the hrst subscription OF 81 ooo each
There had been great deal of talk about the time
OF the passage oshe Amendment. but no real agree
ment. In tne latter part OF lse5 he had become
rather disguised at the state Of the ente prise, a
great national enterprise with but $4,000 subscribed
and some Of those subscribers only working
on borrowed money lie then subscribed sl0o,003
himself and 100000 for Oakcs Ames. The
subscriptions. were made for the purpose OF
making report 10 Congress, but at the same time
they were bona rae. He considered himself and
Anies, who he knew would adopt whatever he did,
responsible for the money. Then he had q conver.
sarion in New YORK at which Mr.. Lambard was pre-
sent, though lie Blair hardly took him into con-
sideratlon as not be ing responsible. Mr. Blair had
not very high opinion OF impecunlous people. AS
q result OF that conversation, aud he believed ut his
own suggestion he went 10 Iowa, and there sub
scrbed 81 900, 600 for the Iowa Construction Com
pany-s1lO 900 for himself and the same amount for
Mr.. Ames, and he thought for Mr.. Lambert aud
make IN 81. 600 Coz lie had subsequently, with the
board Of trustees, made report 70 tle gov.
sranent @ tDst o son m had had
not then known that the subscriptions were
not good, though he had perhaps some doubts as 70
the soyency of some members. In fact, Archer aud
one, " not two others had suggested that they
could not pay mp. Forty per cent had been called
the sock. He had paid up all his assessments.
With regard TO the loose conversation with Mr..
Iambhrd he did not remember its exact terms, but
he knew that lie had only intended TO say that ne
should not on any technical matter be struck on.
Then came the increase OF the stock. lie had de-
sired TO clear out the trash who had subscribed
without money TO make their subscription good ut
at least 70 bring meu OF responsibility. lie had
proposed TO the Board OF Trustees to increase the
stock and they had referred II TO the Executive Com.
nlttee The Executive Committee consisted OF FIVE.
Mr.. fambard was one. lie had at once opened the
books for the new subscription Of s2,0O0,e0O. There
had been no formal meeting OF the Executive
Committee authorizing H. but he had acted In &C.
cordance with the general feeling OF the meeting.
lie had received letters, or copies OF letters,
from Mr.. Lalnbard. or his clerk, or from Mr. WI.
liams, as Mr.. Iambard's agent, demanding SUBJ
scription, but had taken no notice OF them. AZ he
did not consider Mr. Lanibard responsible person.
There had been no formal meeting or the Executive
Committee to close the books Merely the subscrp-
tlon was fed. lie had kept the books open after.
wards only 10 allow transfers aud the completion OF
paymenis by subscribers. As TO himself he had dur.
IND Mr.. Lambard's absence taken but ssp,c0) OF
stock part OF the stock subscribed by the Construc
tion COMPANY, and MIR. Anies had taken SlSO,009 OF
the same stock The other $4,000 being
taken by various parties; he would have
bcen willing enough TO have given Mr..
Iambard his one.ninth OF that $4,000 but for
Inc charges he mad preferred against him
Ito ba now about $500 600 OF the funds of the COM
pany-aOout 1000 cash about $4,000 United states
6onde s11O 600 In note cf Jessups ana 100000 In
a note of Aulcsi The company had not yet Issued