New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-05-01

The Davis suit Against the Union Pacific
Bniiroad-PrOpOsitiOn TO appoint .
Receiver-The Court gives Gives Time
to Furnish Satisfactory Security In

The Davis suit Against the Union PacfMc
Bniiroad-PropositiOn TO appoint .
Receiver-The Court gives Gives Time
TO Furnish Satisfactory Security In
Lieu Of n Receiver.
CHEYENNE, W. T.. April 30.-The argu-
ment in the case of Davis VS.. the Union Pa
ciic Railroad Company, and others, was
concluded at three O'Clock yesterday. The
Judge promised decision at ten O'Clock this
forenoon. The Complainant claims that the
allegations of his bill have been fully sus-
tained, and that the most gigantic system
of frauds in connection with the construc.
tion OF the road, disclose the fact that the
directors and trustees of the road, by cum
ming and device in making contracts with
Oakes Ames for construction, and on the
same day having it assigned to themselves in
fraud of the rights of the stockholders, and
that the credit n,o5ilier Of America was used
by the trustees to conceal the device.
Upon the hearing, the original stock OF
the trustees of the Union Pacific Railroad
Company, owning shares in the credit mo-
belier of America, was produced, showing
dividends, paid in January, 1858, amounting
to over $1,000, 900; also. the so-called tripli-
cate agreement between the credit nobllier,
Oakes Ames and the trustees to whom the
construction contract was assigned, by fur
nishing coal for fifteen years at six dollars
per ton, was also produced; and it also ap-
peared that the stock OF the coal com-
pany was owned principally by the trustees
of the railroad. The complainant also
claims to have shown that the railroad OBJ
tanned bonds from 6the United States
amounting to $500 600.
Upon representations that they owned
materials for which Davis seeks payment.
and in view of all the facts in the case, both
she railroad company and the contractors
have become liable to him. The defense
admit that great irregularities occurred in
ha huilAinor "a tho road hut HpnU the
| jurisdiction Of the court to grant rehef in
! the case on various technical grounds. They
| deny that Wyoming corporation law is bind
| ing upon the court, and claim that the cor
| poration is solvent, and under able and
| judicious management, and to avoid the
| appointment OF Il receiver, they tender
| bonds in the final sum OF 81 900, COO con-
ditioned for payment OF any judgment Davis
may obtain. Counsel for complainant insist
| that the bond is insufficient, and they are
not bound to receive it. The decision of the
! judge is awaited with a great deal OF
anxiety.
Noon-Chief Justice Howe rendered a
partial decision this forenoon upon the appli-
cation of James w. Davis for a receiver for
the Union Pacific Railroad. He holds q
court Of equity. and has jurisdiction otthe
case in that the defendant upon showing is
responsible to the complainant that the af-
fairs of the road have been so mismanaged
| IN Times past Us IeHaeI ~ uo0o't0A
if it be able to respond to satisfy any judg-
ment the complainant may bring. owing to-
the vast interest affected, but the court isl
reluctant to appoint receiver, and adJourn5I
till the afternoon to give the defendant ar'
opportunity to furnish satisfactory securi-
ty ia lieu of a receiver.
| In the case of Davis VS.. Union Pacific
| Railroad Company ct al, after the adjourn
ment of the court this morning, counsel for
| the defendants, to avoid the appointment
of receiver for the road, stipulated with
the counsel for the plaintiff to deposit in
lawful money the amount claimed by the
plaintiff, within twenty days, as security for
any Judgment the plaintiff may obtain. The
court, on coming on this evening, was noti-
fed of the stipulation and deferred entering
| Judgment for twenty days.