, 1875-07-03

Tho bonlloldcrs OF tho Chicago. Dubuque l.
Minnesota md Chicago Clinton Il Dububuo
Railroads. better known ns thu Iowa Hiyer
IioalB, held meeting At 1oaton Inst Tuesday
for tho purpose OF bearing tho report of tue
Committee appointed ut Il previous meeting to
mako Investigations relative to tho alleged mia-
management Of these 1oadh by Its Directors and
the managers Of tho Chicago, burlington Il
Quincy Raitroad. Tl.o report IL very lengthy
one, and fluids that the management OF thcBo
roads l,ns been wasteful and extravagnnt. mud
that 1868 200 expended arc ytt snaccoantetl for.
II il accompanied by q long opinion by Judge L.
II. llpar, Whu decides that tau Directors OF tho
Company aro personally liable for ALLOWING,
cltler by dircct act Or neglect, tho approErlR-
tions Of the prnpatty Of the COMPANY
to tho payment ut dcbts for which
tho Company waa not morally OF les1ly buunu,
anl that those who ho.,gAt stock on tho repre-
bcntatona Of 4 circular tsatled BY tho Constsnc-
tKn Company, tho lnembelB of which wcro Di-
tectors Of tue Chicago. Burliugton 4 Quincy
Rsil1osd, could recover their monsy by bringing
aotion against thesn individually.
Tllo report reflects very severely On afr. j. II.
Walkor, President Of the Chicago. Burlington d
Qniuey. and J. X. 0sares, President Of tho
hiser ltoads mud Mr. ]. +. Joy. Str. nrasos, it
III charged. Ly allowing Ktock to 10 turned iuto
bonds. and by buying up the Companies stock
with the Companies money, diminished tho no.
oursty Of tho boidEulucrs, who, II thiB hatl not
been allowed. N0ulu hayU held nj security, In tho
form Of work performed. all tho ,noney sub
that put In by themselves. Figures collected
from the statements OF Mcsars. Joy, Graves, and
Waller Eiso the rscs!pts aud expenses Of tho
Coust7 notion and l!ai|road Conrpsnles to Feb.
23 1875, ald eliow, it IL cla1nc1, large amount
OF muuey-~S:}52. G22. 7a-unaccountcd for.
Ms. uoar saya:
lc,a.sla;5s have probably 70 claim eT remedy
cnnTs, from tho wait Of security Of lMilo u Tnn
lrel ruad for e4c4 5.i,lo .! honls Issued. Hut
Quincy, WIN issued thu circulars % tirs stucklol4rrz,
whIu apparently aud rEofcssedly aettnR, u Il Nas
,ts icy yt ' 10 7. tses e. y "mssp ay n
htrl'tnn Ca!nlsnirs, III wlnln A!l tbs bohGs ut the
railroad sonaranie2 werc turned osct aud thus they
1hsfs associate directors - their stoe4hoirr~.
Thia sttyerso fnlesrt would tnduo these Directors
- hss s ~ H.. 1 'nxs I'll.
sAhscrtt for their phats of thrse bonds, rttru Ill
s, ssre taken Y others wsrs lsrssea 81 e fsE thes
,rfr. to them III rsockho4sTs tnlrfluuy. fassead Vt
brfR taken by them III thetr corporate capacity "
| continuation cnmtulea."
sush = ,santaei!on would not BE- .nprortel ty q
chass nx n1xn 1unoy. 1 W. who so wero so e.
oI'isr. WIZ 4utsestsd fur itrtr tonds on faith ot
bends, waeher ths prertotl had my ffaudnlcat lu
] lent Or llnt.
Tbs remedy would bt by bill in equity brought by
luns!httr against thu Directors wlu yutt i to tEsrG
the circulars, an who aso members VI tho Cor.
strucion Cosi ata ,ntght bo aIs!sAbe to oItr
msur!eirs tio 1onds. IL which cane II woull uot b
| udssuAs tu sign The Mlheetintiou for foreclosure.
The ComsnIstee ststea that ale above eiainion
makes 1t clear tlaat any bondholder who has pu1.
Chased bonds on the fslth ot tho circulars OF
JUNO I, 1s7t, Or Jtsfch 7. ta72, tso being stock
holder Of tho Chicago. burlington 4 Quinc,
Nailtoaa and still ho!d!ns tlse bonds may bring
si!s against auy or n! Ut stte .uelabcss of the
tanstrnslion Companies who, az Direosors Q! tt,f
Chicago, Burlington i Quincy l!ailroad. yotst
tor the itaus af sheso efyaulxsK; but It il no
elear that holders Of bonds purchased in opo,
market would hsye such rcmedy.