The star. (Cincinnati [Ohio]) 1874-1875, 1875-05-29
[Communicated.]
The KentsschsY Railroad C0nfropersy.

The property owned by the Covington
& Lexington Railroad Company was solo
in October, 1859, r. B. Bowler being the
purchaser at the price of ~, 1876, 900. He
| took possession the same month, and he
| and those claiming under him, have had
| the control ever since (nearly 16 years J,
giving to those holders a clear profit, as
believed, of over $5,000,000, which has
been distributed between Bowler's heirs,
Stevenson, Ernst, &C., leaving $l,CSl, 900
of the Bowler purchase money unpaid.
At the time of the above sale the stock
holders had paid in money 81, 332, 900.
The county of Pendleton and the cities
OF Cincinnati and Coyington became
liable on guarantee bonds for $3.50, 900,
and different parties held income bonds
for $l5e, 9nn making total in principal
iii iii 1915 Of 81, ,s32, 900.
In 1865 the Covington & Lexington
Railroad Company brought suit against
BOwler's heirs to recover the road. That
suit WIS decided in the Circuit Court in
1870 carried to Court of Appeals where.
in decision was rendered and mandate
issued in May, 1874, declaring that Bow
ler, being Director of the road at the
time of his purchase, he and those un-
der him held as Tustees for the stock
holders and others interested, and d.
rected settlement to be made of re-
ceipts and disbursements, and balance
struck and paid to the old holders, but
on the 9th Of May, 1876, without any set
tlement taking place or any exhibit
made by the Bowler side of their profits,
Il compromise was entered into between
them and the Directors of the Covingt0n
& Lexington Railroad Company, three
of whom were lawyers and interested,
whereby, among other things, it was
agreed that the Bowler heirs should
keep for their exclusive use all the
profits up to May 1, 1875.
That the Kentucky Central Railroad
Company should be formed and the cap
ital considered as $4,000, 900, the old COM
pany was to release all claim to the
road, depot, cars and other property,
and all of the same go into the new COM
pany Of the so-called. St. 600, 900 Of stock
The income bondholders and the cities OF
Covington and Cincinnati and county of
Pendleton were to have their $50O,000
| principal in preferred stock, entitled to
! be paid per cent. per annum, commenc.
ing May /, 1916; the stockholders in the
| old company 70 cents on the dollar upon
the principal OF their stock-in common
stock; Peter linn for himself end his
surveyors $1,0O0,000 Of that stock, and
$100, 900 Of same to Zinn, to cover indi-
vidual expenses, and the balance to be
held by the Bowler heirs and associates.
| The $1,088000 first above named to be
{ a debt on the new company. Cincinnati,
Covington, Pendleton county, and the
Income Bondholders are required to re.
lease all past interest, and the stock
holders of the old company give up q
per cent. of principal and all back In.
terest, each Of them must do this within
twelve months or get nothing. To make
this compromise effective, the first item
in it required the suit to be dismissed,
| that suit out of the way, all interested
in the old company would be compelled
to submit, as the statute Of limitation
would prevent new suit being
brought. Late on the 9th the suit was
dismissed, and on the 9th the City oil
Covington, by Chas. Eginton. attorney,
presented the affidavit of V. Shinkle,
President OF the City Council, moved to
set aside the order dismissing the suit
After brief argument, it was continued
to the 9th, and on that day further post.
poned until next Thursday.
| Want of space to-day prevents giving
the cogent reasons which Influenced and
sustains the motion to set aside, that
may hereafter be suggested.