, 1873-10-11
Case OF tho Stockholders Of the Gilman,
Clinton & Springfield Railroad
Company Against the
Directors.
Answer Of Dcfcntlants' Counsel to
the Charges Nude Against
Them.
a Copy Of tho Contract Between the
Road and tile Barclay Coal
Company.
Other Items OF Ra1lroad News.


speeia, Disratch to The Chicago Trfb"ne.
D1ooM1NoTox, Ill, Oct. 10.-In the case ngninst
tho Directors Of tho Gilman, Clinton Spring
fold Railroad Company today tho attorneys for
Directors road answer to tho charges inado by
complalnatts some tays since.
Ths following ia synopsis Of tho answer:
THE DIRECTORS ANSWER.
Their answer Is really general deunl of NIL coTrup-
ton. They say that se Company, although 1t received
large amount Of bonds from townships and counties
in mid Of tho road did not realize near tho face Of tho
bonds, they having bccu sold ut prieea ranging from
90 to % cents OIL thu dollar. Nor hAvo oil the bonds
TINT y oe @ DH eort esv @
received not franduently mlsappropr!ated;
denied ta. Mey Maror h 9a t rnss s,'gp S'9Hsptsa ta
gan gan improvement COMPANY .o bnild i: They
correctly set forth III te bill Of complaint Thuy dcny
that tho grading and bridging Of tle road WA aght
thst Is rons ~ mood rart Of tho Wy an Il
the sangaaon River twice anl Suit Crcck three times,
sn fet M a ps adrosi
deny nat o road sos only se3oouu and state TINT
that could bo 1nnde. ai at 1t was not 1naao 10 do
Tho aiaswer admits that tho Company wcre to giyo
county 6onda, a tie further Of <2,uooooo in the
lie Railroad Company, by tic contract issued *t,40o,
DO Of stock, yet u,lsoll, to tho Morgan Company;
but ill., he sd 20 massi rse rose s
tcross Of the Morgan Company. Tho answer goes on
to state that tho Directors men o standing and
building Of railroads; an1 ut tic time when t.e con-
tract waa nnde, everybody along tho ling Of to road
clanoring for lts construction, aud tho Dlrcctors
that they could gct tat would result in tho building
rosSe aor rhs '
Company wus responsible colnpuny haTng sou ooo
s sas a1sy aaa he ro ]
to bo done now the money could not 10 raised on tic
bonus.
any Iart Of tho road aud states TINT the Railroad Com
pany 1aado oil Tho contracts ITSELF subject to the
any paa al tha opy r Srdgs % eng aud ud
track-laying The Morgan contract prices were rot rot
tic coutruct wls e1raragant or moi. itwas tic best
The railroad IL only III miles long, with 5,s miles
bonds, would 10 sG9o,oOo but tho Railroad Company
nas d tho Morgan Company oRy "a And A. my ny
III ralrond bonds were to bo Issued It to tho Morgau
Company whereas only s2.ooo.ooo have nesa ,
specific price, tic Morgan Company tahing tho entire
a the. ~ ' liz Dirs:tors thst noaer party 10 he
Morgan contract can vet tell whether any Molloy VII
tic money has been furnished for building tho road
md Nil the bonds have bccn iGsacd and reduced to
1t Is expressly HBteGu Ill tne CONTRACT %lat
only s. ooo 600 first mortgaHa bonds ean 10 thaueu
and that wen that sum II exhausted the balance must
be second mortgage hond and that Mother Gull 10 OF
TGe Ratiroud Company has not been ablo ahove
statod, pay tho full s in municipal honta atid
those that wero delivered were sold by tho Morgan
Company below par and I'LL tho money realized from
them vas expended iii building mud cqupping thu
The answer al,nits TINT John Warner. ono Of tho
Directors, was momber Of she firm Of MagiA u CO.
who held tue contract for grazing ma sas
ht1t 4}u
1raululen. Illegal and that warner maae no money
by tho job 1t is denied that Fuller or Graham for
him1 ad my interest In tho bridging contract, also
that Fuller any excessive profit ~ my contract
or that hs position ylre-preaident aisqlaliac1 hiu
Company II ia alleged that much moro than 81 600 0o
were required to build tle road.
It s admitted that thero III credit OF $J73oab on the
Railroad Co1npanys books to the Morgan Company
but this ia stated not to bo III eSeess oi the coltrac
bonSs aa da ae hs esa I BE-
and that there was no intention to nuke fraudulent
Tie answer etatcs that tho capital stock Of tho Com
pany may De raised to s5,U01,ooo 1t u admitted
That formal increase OF stock was 1nade 1us IT,
atock Inns hcen Increased to tho extcn Of 900 oo
moro by tho insertion Of u calsse III tho first mort
gage bonds that they could DO exchanged for stock b.
aki sanetioned ~ she brectors Of the railroad. Ths
assartA tho right to create any hoat!g or tempo
s to & e9nss ls0
oud mortgage bonds were Issued to raiH0 money II
purchase equpmena snd provide a aas
Ecott, to be used for tho PURPOSE mentioued and nj
other These bonds wers legally iasued md wero nee
now in THOMAS A. scost's hunls and no money ha
been raised unon, nor paid on them from the seY
Tlie answer aimita that Melvin Dlack, and VIII
lama are interested in tho Barclay Coa Company, bu
Wien the Ino Of road was lraf ready Tor operation
kore coal niue OIL It, and 1t ~as required to &c
s eo1 naot o ssn sa f % tbs eSngp
contract with the Darclny Coai Company their coal la
cost only l.60 per ton. The contract with tho Bar
OxorbItant charges elsewhere. The working Of til
slaft at 1areluy haa and will continue TO, add to II
css Of lie Goal Company have made moro than fai
compensation for tho amount Of capital nnd labor the
In regard to tho lease to the rennsy1vanIa Nallroa
Company, the answer states that 1t aH not been con-
pleted, and never las been of binding force; that,
rst mortgage bonda and that il the interes. thel
them can esn ths road 10 satlsfy them,-a proceotn
that would ronder the stock Of the road and tho secon
st. Louis and Hannibal to philadclrhla an
HsT sa axS e ~ p s0a b,9 e s nea 9enae1 sssn
road . paying Investment, and. with this object
xtew ts leAse was made. I4s answer ai1ogos H.
not 10 be permitted to binder thu contamination
tnpea resS in @ ho Ian and ruin q co1
suy and it's stockholders. II has always hcon tho Il
feutiou Of tho Directors to submit tho case to Il
etockholdeEs nud in legal manner obtain their
sent to IT, The answer Ia sworn to by 8. II. Mely
President, and Jos W. Lane, secFotary Of tae railros
company. The above Ia fur synopsis OF ta content
Separate answers were presented by tho indi'
idu1 Directors Of the Same general tenor al tt
foregoing, but differing from It In that they o
tempted to answor tho charges made again
them individually In all answers. 1t IL danie
that the contract with tho Barclay Coal Compar
is cithor illegal or unjust. Tho contract itsolf
Tho beBt evidence Of itB character. 6o appor
. synopsiB ......
THE pAncLAY COAL COMPANY CONTRACT.
The contract Nude Aug 20, 1879, between tue Cos
mining Company mud thD G., q. Il Il. Il. It., to r.
twenty-five yea1s ths Coal Company to furnish Il
railroad all the c0al required, for al p'Fposcs. nt
cens aboye wlla they pay for mining per ton, thD ra
road to furnish a cars necessary 10 work tla mine
its full capacity aud furnish to load tho c1gin
from the shrtea, to transport over its lla any &C
shipped by the barclay Company at 10 per cent low
rate than any other ahipss, and for al coal ahipp