, 1874-10-23
Louis was authorized hy the Senate to 1oan ite

Louis wna authorized hy the scnatc to tonn its
etoHit on 6y thu Issue OF bonds to the amount of
S7oo. o.ooo to tho Company, under obligation that
cipal nt maturity. At tho comptetion of tho
rohd tho Company fonnt1 itsolf in such
cmbnrrasBod nancial condition TINT 1t wns
mhaDlo to pay tho Interest Oh tho State t1obt aud
II hccaino necessary for lle stata to tako somo
action upon tho Company'a default in tho pay
mont Of lntotoBt. Tho Slate thoraforo passod
M re- providing for tho aale Of tho Pacific oad,
coapa,y Con 10 uSts,gno xnnm iho sa:os lion thoreon Tho
mndo tnorn"1a u .o 70 nostotnont Of tho State lion,
lot sI;veo oo0 9f bonds These bos wore ali
opI1cts , nnu to bon<ls woro tnkon In good faith,
gagc. dated July l, 1871 for a. 3.0o md nnroti.
ntol q all tho bonds nndor tho aaino n,,t nnrlicd
tho proceeds Of tho samo to tic irnnrovnn,ant NJ
nittan rnat ro; a aho company havo nso purchased
an ntoIo tsRdt Pfop9fTy m thn Oily Of 81 Louis
bonds for s800,ooo, secured by mortparc
on such lands. subsoquoutt to saitl mortrng3 H.,
e.; e. ooo, March 81, 1s73, tho 0enern xssem. m.
s tE sSi to !" DaJRod Refs9a 9 31n
tle 9onstttntionaity Of tho transaction ~ with III
tho Pacific ltal[road Company unt1or tho net ~ ~
March 81, 1863 because Of ccauao In tic now ~
Constitution Of Missouri providing that s.tho
tho lion held by tho State Oh any rniiroad,'
This resolution instructs tho Attorney General
to inRllttito BtB fo1 tho p,1rposo Of toatiur lin
consttstionHllsy t Of TIC aaia law and protecting
md MI rights, tatorosts Or claims Of tho state
ngainst /. tho Pacific Rairoad." Tndor
tla supposed authority. tho defendants, Wooa-
son, uoYernor. and Ewing. Attorney doucra
were VET u proceeding {witlout auit) to advertise and
tho original lion Of tho stHto, as If tho act Of
March 81, 1868, autl tho transao.ious u11dor thu
same, wero moro nullties, and rs If tho new
fightH and lfons, under tho subsequent mortgages
Tho complainants. representing tl,oao now riahts,
ana interests III behalf Of tho bondhoIdo1s,
iilod their bill in the Circuit Court Of lie
United sta!os for tho Western District OF Mis-
:! nouel to restrain tho Threatened salo. 4 pro-
maintained a. tho hearing. From this tlecrco M
nppoaE was brought to tho Supreme court, and
LILO question prosecuted for consideration by tin
Cours ia OF tho validity Of the transaction BY
Mn1oh tho 70, Pacific lsaroad Company and tho
State Of Missouri satisfied tho lien OF tho 6tnte
IN conformity tn and by tile authority OF tie fifth
section OF tho act Of maroh 81. 1868.
bfhASoE RUMoAs IN WALL. STREET.
LILO New York Tribune Of tue 21st sayB;
scyeral M atorieH wcro repeated among tho knowing
discussion. First In Importance yyaa rcnort that
Commodore Vanderbilt hid Ho!1 to Daniel Drcw tho
regarded BY liz bs gnasuteS ,s siat 1 tp praa Tas
o. ny s!ocK ~oua be Sept sboyo that hgnre. As M
otcai Information H ubainIb1o in relation to tin
atscr 9n ~ tho tranuaetlo IL entirely at var-
luce "iin tno course Of the c1nmodore during recent
yours tho 1'bHnc gives tho story for what It is wort
MexI n Importance was tho announcement that tho
Gr!e Hallway Company had obtained anocr loan in
Tho nilont OF Tho loan was y;tiouslv stnteI
T. 10 from - 10 sGouotoo Tho conditions IN
aer which hr lonn waa raised reported TO 10 yery
unfavorah!e to tho Company. Il wan INSERTED ink
,em A. e gay m Er9 Director representis tho
oaii ut Gu per cent sterling. which would net about u
"a currency. WITH view 10 uscer,aiuiug what tllo
acts "cre inquiry was made Of OIL Eric D!re2tor WIN
stated that ho did not know tho details OF tho nueota
4pls' noF indeed nnyhns beyond the faet thnt r.
nittance amounting 10 E10o,ooo. or s50o,oc0.
another statement In rrcuation Is to tho effect that
alr Gray went abroad to negotiate second mf,rteaue
y SO, ,Q0o. 900 upon ths Buffalo, New York l. Er|o
saslway, recently ncquired By tho Ete. Inquiry Of
ne Ero Director referred 10 e1lccd tho statement
nat 10 know nothing Of tho matter. 4 former Erio
Jrcctor, WHO is friendly to TIM present administration
M IL fam!'ter with the management OF tic Comnapy
nlrs ss that hc had heard something Of tho matter
'ut d hot know sufficient to inart authentic nfor-