, 1873-11-26
The Gilman, Clinton & Spring.
field Rnilroad Credit
:: Mobilier.
Judge Tipton's Decision in the Suit
:" Against the Directors for
Mismanagement,
us Finds Them Guilty Of Breach Of
- Trust and Appoints q
Receiver.
History Of the Litigation
Growing Out Of the
! Case.

Special Dispatch to Tho Chicago Tribune.
BLooM1NoToN, ILL.,, Nov. 25.--Judgo Tipton, Of
tho MoLoan County Circuit Court, gayo ha
opinion In tho celebrated easo in which tho d.
roctors Of tho Gilman. Clinton l. Springfield
Railroad Company aro alleged to bo fraudulertly
using the Company's asBeta and property. Ho
has decided to appoint Receivor for tho road,
which, OF course, means an utter dofcas for tho
Directors. uo haa not decided tho question OF
whether tho stock held by tic Morgan Improve
ment Company ts void. nor has he decided on
tho validity Of tho humorous bonds iBHuod by
the Directors. Tloeo questions he reserves till
The f1al henring. Tho opinion is very longthy
one, aud roeitos tho facts and allegations In full.
Tho following, however, a fair synopsia Of
such parts OF 1t as tho public at large will care
about reading.
HISTORY or TIE CASE.
Tho Ga1cna, Clinton Springfc'd natlroad Compa-
ny was incorporated in 1867. Private cizcna along
10 pcr cent Of such subscription paid In. Sam,
ael alovin who was elected President Of tho roaa
to
10 was in PHILADELPHIA ho submitted IN writing 70 the
President Of tho pennsylvania Central Railroad Cona-
pAny tho proposition III boha1f Of tho Gaeta, Clinton
b Springfield Railroad Company In cf1ect na follows:
AGREEMENT uEgwEEH ruE noAD AID THE coHsTnuc-
Il tho ponnsylynnia Central Railroad Com
psny or constructing company IL 1ts interest ,;s
ton Springfield Railroad M hp IN aceordnneo m % With psns
sad speeincaons The conssrcsing party sl4 receive
M per init c u Y tho oonds Of e9aioa md .o"shps
tercst. TO further aid iii constructing cquiping, snd
receive lhe Railroad oomrany's courou-6onls to an
amount not to excoed SIS 900 milc, Which bona will
bear 10 por cent intorcBt md ho secured by mortgage
Ho further prcposcd to leaso tie rrilruad when
no fGss n %
Company'a bonds.
Mr. Melvin subsequently changed tho proposition,
In TINT he aded tho proyIuon that the railroad would
vida suitable dopot-grou.'a Ut cost to tie eonatrct-
Ing party not exceeding $6u,o00. >.
THE MORGAN IMPROVEMENT CoatrA1'T.
waa Incorporated IN pcuuDylvanin May g. 1870, md
far a. tue evidence In tis discoaes 1t ws orga
,zed fol .ho aoe @ 1n soo of lts Sond
entered into CONTRACT with ths Gilman, Clinton 4
Springfield Railroad, Of which tue following In the
oosrnAuE nEGwEEN THE RAILROAD AND THE CON-
aTEUCTlo:1 COMPANY.
Tho agreement recilc4 :Lat ,ho Gilman, Clinton &
Springfield Kairoad Company proposes to construct
s;esa from aMss snd i 3 r.
T. 0na at '0f Ill II seasfo' fs4 s9
Improvement Company, aul I'll esinlates ~ of WORK
aoue must receive thu Endorsement Of an engineer
iere payment is mnds upon ths:.' Tho survey, loea-
ton, aud specifications to ls enbect 10 sur notil-
s9a Tua 9s ~ 70 5s y
weigh not less 'ha 81 pouudp sursl. With dsl-bar
conuectiDn.
THO 0,Inau, CLIFTON Springfield Company arc to
pay tho M1gan Improvement CGnrsny county and
townsni f:on.u II aeeorlanse witt thy lsonosition
YHE
Clinton 4 Springfield COMPANY also to execute
Ssn1e .ss ee a0i to ns nsya5
yeara from date in d.ro aaia bou.!a Is 10 lcll III
trust by tho psnnsylyania Central Ea:!road Company,
IN accordance With resolution Il It's no::a Of Dire:.
ots. Tho Gilman. Clinton 4 Springfield 1s.tlroaa
n,ens Company, certificates nf stock tor TIC re,
matndcr VI the capital Bock OF Tue railroad
To- ss bs II Sy @ o.as
1:ailroad III liku lnau;.er.
This contract III nat 10 to binding on tho Morgan
Board Of Directors or officers of Tia duan Clinton l.
Springfield 1shiiroad without tllo approval of thu
Mosgau improvement Company.
THE CONTRACT MAT1EtED.
This contrae. was reported ~ PRESIDENT Melvin to .
sssf pssd o af ' a a Wis r
sssoutop ssa osred y tbo IL 4i L. Mooss Tho con.
the sotual cost s. Construction and eqairmsnt ot to
With tssy Se:siysl $s5aooo ii townshp ga eSanty
bonds g. ;ts,t;%moftSage =, % bonds and
p1axorons Or TIE Road nu11so 1MrnoVEAEST
p On Sept. 2s, 1s7o, heivn, H Black, cnd Williams,
thr.o Of ths ueng blrseoru 4 tic road a, Melvin
lcling the Ircsdout of tho Board Of Directors, pnr
chased nsee shares Of Gf thu Morgan aod tn,
sas md ssSe er noes Tor epe. s TSs notss
Ind Cash Wero aferWard returned to the PARTIES, but
BY the counsel for tho co'nplsanta TINT It waa coll
s T. n na thsy to oamas
Is yea and ought to 10 ut asids, aud i
dscreo rendered. for tho cosnplalnant.
FURTHER NEUTRALITY-SUSPICIOUS.
On Sept j, 1879, tho railroad company Issued t
mortgsgs pons, Under resolution l Il f'i he Toard :.
Directors Of tho Gilman, olntan l. 8nrngas!a Rail
soa asssa 5an II s Ono eSa 9 ta dollars
wsro placed III Ito hans Of Thomaa a. Scott, trustee
DEALINGS WITH TUE nAnc1AY COAL COMPANY.
The next action Of the Doard Of Directors conlatu
ID OF Ii tho contract thy entered Into ~, u behsf
as road %s as IL whss haaf'' 'st ass bss Ss
ths stes S esps & ss 2s, W. PFssss s q H.
provides that the Barclay Goal Compsny shall Asye A
tight TO furnish coal to Tho railroad company Mt
transportation. Tho point lrat 1nado ls That this cou
tract l. yotd; tn! t1olyIn pls, and Williams wer
1t tho lne EtockhOdelH In tho 1ircay Cua Company
and second, that ae oontrsssts void ns againas pub
Tho Bin furhor c!.ruea that t'ts Directors wes
lbout leasing tise rsd to the lelnsy sylyanl Company
% violation Of the lars Of tho statc, and Of the right
LtNn-unANra sA,p 70 DE- sro1Es.
The amendment to The bill charges that largo DOM
saas @ 10 wesS ' tu location ito of staons md M
5 I'm O. 9s 5 ~ q bs tss frqoaa Of
I'm fffn tetI III r