New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-31
RAILWAY MANAGERS BLAMED

MEETING OF HOLDERS OF STOCK AND PONDS TO
CHANGE The CONTROL OF THE CoMPANY-rHE
81. CHANGES AGAINST A COMMITTEE or RETAINING
BONDS.
The charges made by certain of the stock
holders against tie administration Of the st. Louis
Alton and Terre Haue Railroad. noticed in TUE TPf
Saturday have excited considerable interest in
wailst where all the persons in the ceEtHvcTsy are
well known. A meeting Of the stock 'xnd bond
holders was held Saturday az No. 80 Wallst
~ hear the report OF the Committee appontsd
10 inquire the condition OF the road rs II was in
1873. W. c. Whitney called upon to make a state
ment with regard matters which the subject Of
the call He said that two years ago he had been led
"a make Investigations into the history Of the Company
while acting the legal adviser OF a committee az
pointed informal meeting OF the stockholders, and
gave substantially the following statement
In 1859 tie road was in the hands OF "a receiver
appointed I'm foreclosure proceeding Azar4a G. flagg
beng tue receiver and samuel iiden being aus eounse
M fags report made IN 1852, stated tla nout l,oo
Reorganization, 20. DO signed by tAe bondLoiders
and a purchase thereof by committee for the
benefit OF the holders Of the securities coming in under
tAe a.rVsInsnt, AID ior the organ z.iOn vi d
poriion by tne Committee The creation of new sooE
securities coming in under the agreement. The agree
provided ia det.i what each class OF the old
mites s.Oad receive in the distribution Of the new. The
Committee named in the agreement to carry out
tie pan In seang under the ageem, Mt the ComInttee
became the agents III law the trustees OF the per
interested in the securities and signing the agree
mtut
Tue road was purchased at judicial sale by Com
msee Iney orsan.1ed new CONFORMATION, and aii
Mr.. Flagg alter delivering tne road 10 the new
esrpo atoa Pn0iisne mis- report snowns all the Ast1y
Committee Ia oet, and also surplus OF securities IA
the hands OF the Purchasing Committee equal TO
S2s4.OvO OF tine bonds Company IDls after
persons connected with the reorganization
had d and Lae accounts oi tAe
Purchasing Conm,CIee cosed because uIer the Law tie
time had elapsed within which all persons were obliged
u come ill., n order dissriouJion- Taoe
buirs IN Mr. Fagg's Ieport-iouDtess prepared by Mr.
Tiiden, eouIse-were referred TO as surplus bonds
me Company Tor le6+, sgucd by at least t~o lnenl
bars oi uiAt reorsani1Ais Conni1tee, the bo.ids
paay 80 that the record made by
keUr nizng Committee itself that thai ale
Donas eoIonse TO the corporation, they unqueston
AMY dIt hr " hney. Finding no credit ANY where
rv..ized from of these bonds, Mr.. Whit
ney went before tie Board OF Directors at
tie persons who were directors IN lo+I-o
Messern DiIectOIs-eOnsututng majority o the Board
anything about Tie disposition OF ti'ein lhey
ssaSod tnty nsd oeen disposed O by udthoI'y
OF Tie bus Tue fact was subse.i uentiy ,lscerltlue
tha the bonds about the 1865 weie divided Ivy Iour
o members of the heOr1inzng Committee. INC oniy
ca plls, tu could eeitrd from teen being the
statement OF Cuaries Butler that tie Committee CLAIMED
that tle bonds cit over after The reorganization De
lsIlrd tie roorgalzlIg committee ina sIdialy Nj
e.nsy slated tl.At AIS eA.im Was absurd IAe osniAl
Tic tneir hands Tor cerin specifcd pur
poser only and aen those purposes were lned teir
IagDl tne bonds was al al end
sauce the Reorganization this Committee had been
49,. inspection lc list 0f voting DonIAoldeTs-A large
majority u the whole Noung power u inc Coin any
rvnder next TO Impossible fOr the holders Oh tie
Ia conier th each 0t.er AND CARY an eleelun
Tie ssscAAOlaeIs Oi he company lo whom az; MHsnJ
lad rg adv ~eI having obtained Int "a Lac
voting sSOcknoldeIs ad Tor the last NO yeats No1e
large il.oi1ty Of ali TIE Stock Oi tne Company but
aecess sI oi voting Dondhoider havii5 oeen re-
they were sI5 atty VutNoeu ech ca D5 te
tHen over i've Yeas old This system, said Mr nitney
~ the books VI me Company an CLOSED a--lss
lnspocun. and NO e1laa.lOs az .h VI IHe s.Spe.Os
eUnIuc calls Jnt fur Remuneration toc' aust II Is always
possible tat there may De sone explanation o. t'r la,'
but Calls foI action ey Ihe lastlee iheTeeu" lA'S "
the Board sUcn persons as Lave Lad 40 oVnAe
to4 WIKI these proeeednss-
MIR Whitney then made a statement with regard ~ me
l.se Beevile and Southern Illinois road, which
vas substance as follows
Tic road built by the credit Of the Terre Haute
road leased W the TsfTe Hiue road "a. very
e1orbitan raies4O per cent Of the gross tain.Dgs u
to $1,000 "A mile, winch JAe road Is very IAr lrOin
statIon,hoase on it, The bulk that read
whch reap the benefit Of the lease Wa owned Dy
tler interest III me ierre HaGSe eeInpa-y t-is
lease was constant %rsn 9pS1 i IN 10 per e eSSp
IA, gage bonds Wis issued 10 vqaP Tie DccVuie
Rsal. But the directors omit Annually 10 eh-AGt
Tue niel eel on tn sc bonds oI lac items 81 CA
1erre Haut5 Road I'D DONG the DuNhes- IN
Ger the lease 60 that this and other rsyeete the
CALCULATIONS appearing Tie annual IT pOrs are deeep-
tive. lie LAS i've years ch NC ere iis'~'S
Eoai loss OF between slJOOVO and S-Ou,0OO.
I.uleri BayaId disposed Ia deal ialiy with the
Matter, AND had expressed Als desire 10 aeyeI a. As
portion OF the bonds and wish 10 nave tl m%I sol
lied aIuiclby but sad tdat e was co1stIdnd .! Tie
OF The COinnlllce, ana cOUIU hVl c' huo
peLGently. ,,., 49,
MIR ni.ng stated closing his remarks that he re-
Crested s,ieinent-, nat Ld nc ltcts were
made public years ago. ana instead OF e~pahdOh s
HAVING been offered by Committee referred TO- They
had reused pam closed tie books dSiisi lsoc-
tlDu, ana sought " smother lie ensi .e5
Nil BaIne the firm OF j. :. Kennedy d Co., SAID
that he Lad informed by Mr.. Bay1rd that the @ea
bonds Withheld by himself anu associates Oh the
LA opinion Of Gov. 1Lden. Mt Denny then proposed
that suit begun against the Committee To re-
cover lie amount S5OO,OOO. MI WlLueys opinion
mat he better for the stockhoiders To de-
vote themselves 10 carrying the next election OF
directors suit fraIu tHat position would he much
ea,T matter. Mr.. ID. Any slIO that lac Thought Dol plans
announced himself possessOr OF many proxies ana
ndl.lte trustee. A warm dispute afOsD aha ~
Wa stated that being large holder of the pI,fefTeo
and common stock OF Inc Beleve aud Southern limos
benny withdrew from TIE room 1he following rcsoiu-
tons auOpLeu.
keSoioed That committee be appointed by the Chair
Tor the following purposes e.-- -
FIa To demand the officers OF the Company an
Inspection OF voting DonGnodes, ana 40 y e.
se.Ve "A copy thereof and II refused " take legal pro-
ceaSiings obtain the same.
sssoaa III Obtaip prsxies stockholders and
of Company, aud vote Tor -ucA persons as
nmbcis Board Of Directors as viii eanre ah III
made of the matter referred 10 III Tue
circular calling ls meeting Anu lie s''S's All ~''Pu'e
IA he jadically setted -,
FhiTd TO require the present officers OF the com
pany an explanation the iacts referred "a ia TIC eirc-
NcsSrs William c. Whitney William F. Mott, and
Chart L. IAlmen:s appointed Ihe cOMihlVtce 40
under the resolution.
A WESTERN ROAD SUNK IN DEBT.
ROCKFORD, ROCK ISLAND AND ST. LOUIS KEOKGAN-
MAILMAN INDEBTED PAS or Sll, 100000