, 1875-02-28
Summary cf the Discoveries
of Those Officers.
Choice Selections from tbe Correspondence
Of tho Officers Of the Road.
Directions to Rewrite the Books---
Cost of the Line.
How They Began to Scent the Coming
Storm.


Saving Money for the Evil Day
L elimination has arrived to the career Of th<
Chicago, Danville d. Vincennes Railroad, which
has been placed in thehands Of Receivers, whose
expose OF the manner in which the corporation
has been managed brings to light one Of the
most gigantic, startling, and Systematic frauds
OF the century. It ia unnecessary to dwell upon
the past life Of the railroad, OF upon the snB-
piciors OF its solvency which, have been COMMON
Of late, and the facts connected with the placing
OF Receivers in charge OF concern may be told
briefly. Fer some time PAST those interested
IN placing the Company under the control Of
ouch an officer have been aSating favorable
opportunity for their purpose. It arrived on the
22d OF this month, when the principal officers
Of the Company we're in New York. On this
date, Mr.. Cooper, Of the law firm Of Cooper,
Garnett !: Packard. filed = bill in tho County
Court Ut Joliet. before Judge McRoberts On
behalf Of Stephen 0sgood ya. tho Chicago,
Danyilla j. yinccnnes Railroad Company for
Receivers. The Court appointed the Receivers,
who Immediately proceeded to Chicago aud took
possession OF tho corporations property. The
following are the
dAA<lEal x*sls28 u 1dR H41At
61ed against the Company:
The plsiatn shows that the said corporation hath
always heretofore and stall does maintain its principal
ofhno business At Chicago Cook County, Ill, and
Illinois, and thai u to the LAST esue Of bonds being
the issue dated Jan. 1875, that the sazc, and the
@cftgaee given to secure TIE sad ponds, .se wholly
ths laws o1 tbs 6tate of Illinois, force at both the
<ztea last Aforesaid, xnd obligatory said corpora
t5on, that tho szid corporation shall not issue any
fDUdR execute UuQFtEnR1 to tho
without thu consent Of the holder Of txotAiras in
aoxnt o{ the holec& Of the capital Of said corpora
ton, md that ixty day. notice should be given
OF meeting held for such purpose, and that the
consent end authority Of tie stockholders for the
be recorded with such mortgage whereas, the ElaintiH
shown That illegally 4nd fzauoulenuy the officers Ct
said corporation did execute such bonds and mortgage
withoat any such ratification direction Of tie etoc-
holders, and that no authority from the
for such bends or was ey given IS 1equir-
ed bS law, recorded with the latter, and, notith
standing tho Illegal and fraudulent character Of such
bonds and mortgages, the present officers Of said
Tosason trsend the plainaf charges, unless pro
hssd from negotiating the same, to PUT into cireula-
hen valued obgssione some or al Of the laat issue
S eos e1a to hS Ind Il o5e4 d5sgd nond ond
IND stockbolder7 Of said corporation
The pdntf charges TINT tbs present mortgage in
elusive Of past due aud unpaid nteres stands fol-
Iowa, including said last two mortgages executed
By 4hs officers thereof:
First mortgage. 81 900 600
Indiz1a Division mortgage. 1,sooooo
Convertible bonds. Log ooo
To which past due interest should be added AMOUNT
ing to $s25 oo0 making total Of <6525oo in gold
sid line il only completed and in operation lss miles,
making therefore bonded liability upon such ncage
q upx.zd Of ~ ego ter essh ana ever mile whazeas
meat used thereon, would not equal one-hah such
sun And, beA'des the said mortgage liability, the said
returned 70 The Auditor Of Public Accounts Of |
tho 6tate of ufns that It owes Indebtedness other
s1t e.. sna sso1s
edged hoatng liability. In truth and fact, the books
Of said cospor.tion defendant show Indebtedness
composed Of Joseph E. Young the general manager Of
s1d corporation fro its organization to January,
Tennsy. tho Treasurer thereo, On certain construo-
ton contracts purportng to be mads between said !
r7n .nd the corporation Of which they we're officers
And that tnere ts also outstanding legal |
liability q said corporation, consisting of divers ]
Iro onaceT Of said oorporatson and in the hands Of
claiming to bs innocent holders thereof
nsy il disputed b1 said eorporstton secsase Is
ton only But the plaintiff charges that certain courts
Of tho State Of Illinois, where acSons have been
brought to enforce such against this said defend
ant corporation. have decided ita defense to be bsd
and bave rendered judgments against it. and that even
many suits are pending aganst saiu corporation
to collect large amounts Of such disputed paper.
aso Tie s.id CORPORATION h.th accepted eonTeyance Of
civ IF Ch,cagn ~ conx,rrsn.s {{ - ~ ~
:sat,n.i + Wiz .nd o,e Jossnh Vo,n xl"m a one
hs,h a1ecuted is vritt., cusxsntv hv ~. ~
President ohAcattng itsef to psy 1t divers periods
1tez very arge amounts Of money, amounting in the
.gE4rgate TO upward Of s5co.ooo r;ain11r charges
tots tae ackno~.ssgea ana unaekno"ledged
bit about ~ follox1
- ~ 1:nsr ~
pue J. & Touue GCo................' Co. 7oaMs:
Lzahlig "a guszantees. Saa,coo
en q oe1nE bonded anu genera nso.ty o. over
III ~ .a; a ,s' r,d -. ~ o1 no
il onlv returned bv ita oficer1 to The Auditor
4 Pubic Accounts Of Illinois ~ worth in cash. in
$50, ,ll7.ao-
The Receivers appointed by the VIII County
3onrt xern n r. Haun,ond President If tha |
r~.s;.,. T. 1,,;.o;. c..,t-., p.;,1o.s .a ~
t.4. ~. - = -41oo4s SoDA.- 49,. AA1uo~~' 8ua @1'
'oan D. 15so"n' o1 tn1e CITY.