New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-29
A RAILWAY ISSUE.
GRAVE CHARGES AGAINST AN ADMINISTRA-
TON.

HAUTE NEUTRALITY-SUSPICIOUS. AGAINST THE
COMMITTEE OF OBSERVATION-DISCLOSURES ON
THE AGITAuOy-THE ACCUSED INVITE INQUIRY.
Serious complications have arisen in the adj
mnistraton Of the st. Louis. Alton and Terre Hauie
Railroad and grave charges have been made by
number of the stockholders against the
administrations Of the Company's Affairs These
charges TO the effect that the Committee
charged with the reorganization OF the road In addition
voting themselves cash compensation for their services
retained 900 worth OF bonds for which they have
accounted that OF the directors Of the Com
pany interested in the Belleyille and IL
nois Railroad Company which the ST. Louis
Alton and Tere Haute is operating under lease, and
that tho terms Of the lease for the benefit OF the
directors instead the ST. Lous Alton and Terre Haue
Company. The following the most important OF the
formal charges made by stockholders which are signed
by George II. Wooster, Gardiner Sherman, jr. White
Morris q Co.. Campbell 4 Richmond Norbury Co.,
Charles r. Lawrence, A. d. Russell Rudolph Keppler b.
W. Pierce, Martin +. Kingnan, Vim. p. Kingman, s. A.
Kingman, Orvihe eddie, and others These changes are
dated NewYork May ~ and addressed to the bond
holders and stockholders Of the Company.
From the report Of a committee appointed at meet
ing OF the stockholders OF this Company held May 2I
1873, certain appeared which reader il important
that tue bonh,ders aud stockholders OF the Company
should act in concert toward changing JIe present
management IT the Company. .
Tie above referred these, anon, others II
appeared that the road reorganizcd IN 1851 and
1857 that That reorganization consisted substantially in
the change Of the OF the Company ana an cxcnahRs
of various securities Of the old Company for new ones IN
the present Company that the reorganization YVES con.
Quoted i'm accordance with the terms Of an agreement
signed by the holders Of the old securities winch agree
men designated committee to carry through tue va
iOis sI- OF the reorganization ana ~ distribute 'He
and appeared That that Committee. after they had
performed their abors under the agreenent ana hu
voted themselves coinpensatoh Ior lheIE scgNc.s ~
cash. which paid them. had LETT in Their Iands
tS1si GOO two hundred and eghtyour thousann uni-
lar, par value OF the bonds OF the company Wnn az
some Subsequent period they appropriate ana ns't
since paid nv the COMPANY on tnc'n u,k IN ~
alInt $500 OOOl tive hundred thousand dollare. These
o ers Committee two wears eince ANA behalf OF the
Rondhoder. and Stockholders OF the Company, ex-
PLANTATION requestsd bur none has ever been gwen
except the amazing statement made b the then presi
dent that III, Committee claimed TINT inc srrs BONDS
that left belonged To them individually lnls
Committee was then, and are now the controlling spirits
IL the present Board IA.
Ia the Bellevile & Southern Illinois Road which tins
Company operating und,r lease IL appears mat the
wears ago mostly Nv the present NeYOrk Directors Of
our That the first step in the transaction was 70
hut unconstrucled road, which provided ii sub
stance as follows: ls \ guarantee OF 'lcoo 900,
ri. A rental Of forty per cent of the gross earn
ngs OF the road VIII constructed AMI lts taAe. our
road furnish all rolling stock station houses tercss
&c, everything except night 0f way and traek IL
seems also thai though We guaranteed iiOOC1o oeh,
was very mucn lrss than 4 100000. And that the p-
cia st, Ebnters of the B,eve and SOU bern Illinois
Company who he'd tic stoct, which lad cost them
hing and tnen about 20 receive cIidcitS upon
n. were Our New-Yor5 directors.
IL is openly gwen out by acme of the persons IN
terscd that stock, that tue plan now Is u get ms
that has cost them nothing, Oh next 10 hoAn5 eA
CHANGED into our preferred Stock
TLat there Is mt h dissatisfaction with me present
state II things, whereby tie books closed agalnst IN
sreriion and explanations given 81 seemingly
suspicious facts ~ amatter of public ncoreiy and the
,dr.i,rd hoL olders and soc kiorrs have the rcfora
10 call a meeting tue holders oil the seeur
L. Of Ise ss'nyani lor INC ppose o. estin
viii be Led ut No 80 Wail-st, Room o. on saturday
next, May at l:30 N, and all persons Interested
s.e requested W be present.
The Directors Of the Company Robert Bayard. Pres
iden; Gov Samuel j. Tildcn, Charles Butler George W.
Wall Russell sage Of NewYork; Carlos s. Greeley, 81.
Louis Mo; 4. H. Fl. ROundtree, Hillsboro, IL;
H. NJ Dill Paris, H.; g. Chamberlain. Illinois ;
Levi Davis Alton, Ill; L. H. Underwood,
Bcllevine, H. George NJ. Parker. Charleston, Ill
Tie directors Of the Beeve and southern Illinois Rail-
road are Robert Bayard, Charles Butler, Samuel J.
Tlden, Thomas Denny and Russell SAGE Treasurer
New-Yarx; S. Chamberlain, ID. l.. Phillips uIesidenp
Springfield III.
One Of the largest stockholders in the road told
TRIBUNE reporter last evening that all in all there was
some modicum Of truth in the circular issued by certain
stockholders, but there many mistatements. He
said:
Asa prcIu,inary remark LET me say that have closely
examined the names subucriDd 70 the paper, and md
that several upon the list who are not stock
persons. As the reorganization Of the road wron;
impression IL conveyed Tie road was sofa our IN lsol
nr SEQ and bousht I'm lv the Purchasing Committee
referred his committee consisted OF R2bert l'ayar
San.c J. Iden, Joseph IucheI man, john ~, haISslh
and Russell sage MrssTs. Iuckerlan anu hlchainsoh
when the Committee sought to vote themselves coinpcn
sai0n retired and though other appointments were made
caunol now remember who they were. The Committee
were necessarily Obliged to modify the original plan 81
reorganization, and finally bought the road ontright.
After they had apparently cleared every thing up, me
reports gave TO be understood that the Company had
would have on hand numoer OF me oid o'nds.
to about 1000, for coningences IL year
Two aerward they were rot reckoned as assets OF me
company, id II s clear thar they were scd ny ,he ir
chasing Committee compensation for tErr services
although probably certain amount was used in setting
claims GSlinst Inc rad IN regard y, tle LII. az IT,
road lease. the statements made are Incorrect IN part
The rental Of forty per cent spoken or Is modified one
BY the terms Of indentur forty per cent Is pad on ,e
gross earnings Of the road up 10 1000 per ne thirty
per cent uon the surplus MP TO- 600 pr mr, ana ~
The road earned the better the return 10 the main line
The statement a. to te cSss c 81 's ths ne
tnat the road should be butt OF iron
and with length OF 81 miles, and gold at 40 and so
it could not be bmli for less tlan $1,000 per niIs
branch, inst,'al ~ being an expense to the esseeS
she VS. prunt this year, this far OF over NiooOo
wa refused and told that they were open 10 ALL
ON the part OF the Purchasing Committee full iyest
CATION " these charges has been coured especially on
the part Mcssrs- Butler and Bayard. The President,
Mr. BayaId, has been serving the past year without
expenses. lie holds nearly 100000 Of The
STOCK Of the road. All OF tie persons tosctnrr
N is move uu the part OF minor stockholders 10 gain
coutrO Of the road ana they bring forward statement
In support really having upon it's lace the sndow ui
truth. The silnc plan was attempted last year and
failed 1lc report of the stockholders committee max
ius charges make year ago, YET no
investigation had although TIE committee invited II
The whole action II designed IL have effect upon the en-
uIal election Uf June and is tie conldence tlat
majority the stockholders lave IN Mr. Bayufn tDdt
he is certain election. hoding now by PROXY over
90 900 shares O the stock-nUre ihan oeb8lI Oi Tue
entire amount MessTs. j. g. Kennedy 4 60. and
Thomas Denuey Co. Of New-York have themselves
with a view thorough investigation OF AL charges
aud IL Is undesfioOd hold Tue balaDce of power
bctyeer the o,tOsing factions. These rms not,
however any interested IN the call for meeting
OF The line of he 1T. Louis, Alton ana
49,. III a. LIZ. ~