New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-05
THE COURTS.

PROFITS OF RAILROAD CONSTRUCTION.
4 SHIT AGAINST THE LAND GRANT RAILWAY AND
TRUST COMPANY, THE MISSOURI, KANSAS AND
TEX RAILWAY COMPANY. AND oTHERs-soMR
OF ruE FEATURES OF THE CREDIT MoBILIER
REPRODUCED.
John Leiseuring of Mauch Chunk, Penn,
has fled in the United states Circuit Court for the
Southern District OF New York bill against the Land
Grant Railway and Trust Company, Incorporated in
Missouri with IT'S principal office in this city, the
Missouri Kansas Texas Railway Company formerly
the Union Pacific Railway, Southern Branchl, incor~
porated Kansas with its principal office also in this
city, the NewYork Warehouse and Security Company.
Levi Parsons, Francis skddy ]. Pierrepont Morgan,
Erastus Corning, IL A. Johnson Willis GAYLORD. Henry
s. Warren Albert +. Beach. and many others. as
trustees holding stocks and bonds OF the corporations
mentioned The bill the most voluminOus filed in
that court for several years and the substance OF its
most important parts is as follows:
10 August. 1867. Union Pacific Railway Company
southern Branch entered into with Albert
F Beach. Richard McM.chael J. J. Dull, James GOwan,
Baker. and Others 10 be associated with them, for
the building by the latter of railway from Junction
City Kansas, south westerly direction to the north
boundary Of what is as the Usage Indian Lands
10 DO known the Union Pacific Railway, Southern
Branch. To AID the construction OF the railway Con-
gres' granted large quantity OF land along its pro-
posed line and the through which it ran also
issued 80 per bonds in aid of the railway.
According to the contract the railway to be paid
for with those bonds and certain parts OF the land
granted by Congress. In October. 1861 GOwan, Dull
McMichaei aud Baker lowing to some Of them being
other enterprises became apprehensive
OF their inability TO carry their portion OF the
tract and &c raise large OF money necessary
TO build the railway" applied. through the defendant
Beach. 10 Lslseurng TO take their respective places IN
the contract Leiseuring IN connection with ID. R.
Shoemaker aud J. A Polk agreed TO do so, provided
a supplemental contract could be obtained substituting
in the place Of the original contractors This
done. and Leseurng, Shoemaker and Polk became
the absolute purchasers OF all the rights under
that contract of Gowan, Dali and McMichael.
The defendants afterward aud for the purpose
Of defrauding' Lsiseuring, well as the stock
holders creditors Of the Missouri, Kansas
aud Texas Railway Company. attained control
OF the Land Grant Railway and Trust Company by pre-
leading purchase the shares Of stock Of said corpora
uon and by dividing the among themselves, and
by pretending 20 have the Land Grant Railway and
Trust Company construct, equip. and the Missouri
Kansas and Texas RllwAy." They nave also. fraudu-
lenty contracted with and among themselves aud
put tue lands bonds and all other property which
they have obtained from the Union Pacific Railway
Company. Southern Branch, and OF the Missouri, Kan
sss and Texas Railway Company into the possession of
tie Land Grant Railway and Trust Company" In
rying out these fraudulent designs" they caused
sl the lands which the various railway companies
CURED by grant TO Be mortgaged for greater amount
o. money than necessary construct the railway"
The railway companies above banned. including the
Missouri. Kansas. and Texas r ilway COMPANY. when
consolidate & issued bonds ana mortgages exceeding
81 UOlOO) some OF which were issued 10 the Uaion
Trust Company, Russell sage, ana y. a. COvdrey,
trustees
The Land Grant Railway and Trust Company was
alleged % have been incorporated with stock capital
S1500Oe0 but DO money was plit into Che com
pauys Office Tor or account Of any stock aud TAe
C0mpany's stock d" was issued 10 the persons who
claimed to De members Of the Land Grant Railway ana
Trust COMPANY Wi hOut paying therefor and THAI
psry undertook carry the contract which OBJ
Alacd Tor the DuLdn: OF the railway IN fraud OF The
rights OF the complainant. BY the terms OF the
p1udnt contract. he is entitled 70 receive from the
defendants oneifh OF all the profits" that the Land
Grant Railway ana Trust Company has made cat OF lis
pretended contract win thc Union PIcihc Rllway
Company. Southern Branch, and the Missouri. Kansas
and Texas Railway Company.
The Oil pcays mat A rights under his contract
be preserved That he defendants D. called 10 al &C
counting. ana that pending this sul the sale OF any or
the stocks bonds OF Othcr property 0 the corporations
mentioned may DC Ita,4dlLeu ny LJlu.L"H. mat Tue
defendants may. II tey can, show way the complainant
should not the relief prayed for, the Dl requires
the defendants, Beach Parsons ana O' Oro To answer
amOns others interrosatoHes o winch the following is
D.i he NV York and California Vineyard Company
pay $4,000 for ITS incorporation by tie Lsaslaure 81
n,,ney p4itl Did taat Company have oitca al 40
10 BsOad-st. IN NevY0rG cry At meeting OF that
Company's stockhoiders sept l. 1858 was u, name
changed 10 tnat OF tbc Land Grand iaui way and Iru>
Company Was That Company organzed FOR the pm
UusG Pacific klIwaY Company. southern Biauch
Who were the stockholders OF The NcW-NOrk an Cali
foria Vineyard Company at the tme ~ the meeting ~
BrD.ds,I How mUch paid ON each snare or stock
10 whom was IL paid ana what WIS done win TIE
money Nny the change OF udnlc referred 10
made DII you combine ANA agree 10 OrgaiiZe tue
Land Grant Railway ANA Trust Company. " or solLt
other company IN winch YOU had an interest Tor the
PURPOSE OF acquiring rights granite, privileges ana
tgdncnses " to inca the Union bacnc h'lWay Com
pauy Southern Branch the Missouri, isas ana le1d'
Railway Company. and Jae various railroads that IA
been consolidated and ged INTO the Missouri, hth-
sas aud Icx4, Railway Company, were or might u"
come emitted tor WHAT dIVllenuo Ia cd~h or DOn'
have the L. nd Grant Railway ana Trust company Ge
caroG the indebtedness Of the missouri Kansas
and Texas Railway Company 10 the Lana Grant X NJ
va aud Trust Company largely IN excess OF ne capita
o. Inc latter Cuupaur Was inc MISS iTl Kansas ana
Trxas Railway Company lu-Oivent on Jan. i lSl4 ana
lt not now nsOlveut and unable 10 pay me interest
on = bonded Indebtedness and is Heating debt Hds
tht Company ureu1cred al! % as st0ch n0nds anu
inc mo 10 tfe Laud Grant Railway ana Ifsi company
VINO negoti tied and sold the mortgage ponds OF 'hy
Union Pacific Railway Company, southern Branch anu
oitlr Missouri, Kansas and Texas Runway company
VINO received the money Tor the sac u tAOse DOEuS
and how much commission wac p1ldt
Cha1ucev Snafer sullcI,Or Tor tie complainant, anu
Chales Albright b. F. Butler, ana Geo W stevens o.
counsel.
OFFICIAL AID N SMUGGLING.