New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-05-04
HOW A BRANCH OF THE PACIFIC RAILROAD
WAS BUILT-CLAIMs OF A sT0CKHOLDER.


requiring his especial attention
HOW BRANCH OF THE PACIFIC RAILROAD
WAS BUILT-CLAIMS OF A STOCKHOLDERS.
Charles a. Lambard agt John L. bar ana
y an acton brought b IN Ihe Lambad to
have himself declared entitled TO at least cnesnn anu
and Pacific Railroad Company. 1t appears from ms own
testimony that as early as 1904 he and MT
Sero in Warrington not Of concert but with the
purpose namely, to engineer through Congress, nl
should aid them in extending the Cedar Rapids Road
west In their conversation according to ME- Lam
C. be sUed and snsy na d doWS
terests should havo ninth interest Congress ultimately
which enabled them to accomplish their purpose, and
there then conversations with John Blair ana
articles OF and the subscribing by each Of
the Of OF the stock The case held In TINS
President the Iowa Contracting Company, should sub
GS SR sab 5Se iSs 10 e In 5 Mr. Ia%ard
to Europe. and as he says arranged Win Bar 70
bis 0 ' moro Sf stock was sub
scribed and, as bIr. Lambnrd claims, he called
Saw Mr. sF ey for S Sas R
Blair refused 70 do The Government granted aid to
acted on the stock Recording Mt La%baTds ideas
trbution Mr. Lambard has stock allotted TO the
construction company. amounting to $4,000 the !lo'o
subserbed at the time and the first 600 subscription in
ali Si9l 200 OF stock but claimed onennh Of the latter
s9OOOOOO under the original arrangement ana hr bar
promise 20 protect his interest
The engineer Of gave ineresting facts as
to the state Of the road IL was now IN ruhhng Orue
but the United had allowed them but l076 niles
the junction branches not being allowed Inc 9hea
Commissioned had held that 100000 must be
a Sad sbmtted report liking the cost Of the road at
t06sOOO but that estimate included bridge estimated
10 $50 00c per mile TO build and equpsay s2s5OOOO for
the road They now had Immediate need OF SVVO9 worth
Of rolling 1Sh Son0s gbp wou5 cost
IN place OF the bridge for which they had con
racled at $4,000 depots that would cost $1,000 beside
e1sd9S tpt You'll ~. Pbe law re61irod them to ballast
tIe road with stor which, there stone within
200 mile, est 100000 and to substitute stone piers
where the piers wood this would cost NoOOV
He didn't think the Company intended TO ballast with
The deficiency OF 100000 reported Dy tue Ohleu
Mr. John Blair was called Ito testified that he knew
nothing OF any about ninths though really
arst mbscrIption Of 81 900 oach there great
deal OF about tho time of the passage OF the amend
had become rather at the state OF tho enter
prise. great national enterprise win put sgG1 SUP n
borrowed money he then subscribed 100000 Tor himself
aud 100000 for Cakes Ames the were soV
for the purpose Of making report 10 Congress Dut ~
the same time they bOnahde, no considered himself
qeSp6nf5lo for the money then he had conversation in
NewYork at which Mr. Lombard was present. though me-
sponsibe Mr. Blair had not very high opinion OF i'm
pecunous people As result OF that conversation ana
he believed at hts suggestion he went TO Iowa, anu
there subscribed S00oOoO for the Iowa Constructon
FOR himself and the same amount .o IOr
Others had signed similar amounts 80 as 10 ihhhS w
$1,000 s h@ re5rt 10 Se 3ovsrnment that S2oOO
OF Subscriptions had been made honestly anu TSr
| good He lad not then known that tho SUBSCRIPTIONS
were not good though he had perhaps some doubts as 10
the soyecy OF members La iaet Archer anu one
mp Forty per cent had been called on the stock nc
had paid mp all Ms s G he 9d nor r
member is exact terms, but he knew that no ha1 ony
Intended 20 SAY that be should not any technical mat
struck Oh. Then came the increase OF tiS s1oh
e had desired 20 clear out the trash VINO hau suDscIoed
least TO bring Of responsibility lie had proposed
Board OF Trustees TO increase mo stock ana Ihey
tive Committee consisted Of dye Mt Lambard was One
Of 100000 There had been formal meeting OF the
Executive Committee authorizing &c. but he had acted IN
bad receiyed some letters or copies OF letters Mr.
| Lambard. or his clerk, or from Mr. Williams as Mr
Iambards agent, demanding SUBSCRIPTION, Dus iao
taken no notice Of them, as he did not consider Mr.
Lombard responsible person There had been no i ,3
hooks Merely the subscription was filled lie had Kept
tho books open aerward only 20 allow transfers and the
hP r %, H. sha D snC k i 6u $40 65
ton Company. and MI Ames had taken $4,000 OF the
ties he would have been willing enough TO have given
MT Lambard ms one.nnt Of mat s5y,OO put i9r tho
about $500 600 the funds of the Companyabout $4,000
cash. about 900 United states bonds $4,000 In note
pauy had Yet issued their first mortgage bonds.
| They were printed. The first lot mad been de.
| siroyed, being wrongly printed, and new lot
printed He DID not know there any idea Of
| dividing these bonds among tho stockholders He
deal 90 be done the road They might still build tho
bridge The United states Commissioner had called FOR
$4,000 further expenditure II was true that tho road
had been accepted aud the bonds given BY the United
States His sou had taken $4,000 OF tho stock and he
t.ltnes had paid hiS asse,s1ep Of 40 per cont some
selves The OF stock taken by himself and the
was as he understood the ser Of ne Construction Com.
pany. He as President Of that Company, had taken In
| that Company, OF whom Mr. Lamblrd Some OF
stockholders Of that Company took their shares, Mr.
Lombard taking {socOo. The whole amount OF shares
| dollars OF this subscription was taken Dy OUTSIDE
parties Ito had taken part OF the remainder aud
Mr. Ames n part, rather as relieving the Iowa Con-
structiOn Company than 0s an original subscription; he
considered this matter as entirely TRANSACTION WIN inc
Iowa Construction Company he Thought tho stock OF
the road was well managed. worth par Mr. Lombard
had previously testified that he thought the stock OF the
company worth 1907 Mr.. Ames testified that he had
known nothing OF agreement understanding rs TO
the formation OF tho Company he was not sure which OF
made by br Blair whatever Mr. Blair had done for him
he had ratified Mr. Craue, on behalf OF tho doondants
argued that there proof OF any contract prior 20
the organization of the company as 20 tue shares OF INC
associates the only testimony TO that effect DenS at OF
the plaintiff "a TO some conversation between hihsoli
and Crockeri that such contract II any was Dase,
the consideration Of interest with Congressman ana
therefore against public policy and yod that TINS Was
the basis OF the action aud the proof failing, the ac
ton fall with IL that tho individual agreement OF
Blair with LamOard 20 take care OF MS interest while ia
for recovery in this action That there was no proof
Whatever connecting Mr. Ames with the matter nor any
ground Of action against the corporation since IL hau not
made or ratified the contract That hr. Lambard hHy-
ing been Director OF tho Company aud Knowing ali Its
facts was prooludcd frOIa making claim against 10.
That tho Increase OF stock In which plaintiff claim share
subscribed by about 100 bona 1do purchasers ms 10
had failed to nay his rgt subscription and IL was merely
through Bairs good will that he obtained any INTEREST,"
taking OF the burden on himself TIL by Bars ana
A. IA