New-York tribune., 1875-11-02
CHARGES AGAINST A RAILWA

EFFORT 10 THROW THE MISSOURI PACIFIC ROAD
INTO BANKRUPICY-IRRkGUIAR TRANSACTIONS
ALLEGED-ANswER OF c. INION d. FISK.
Some of the unsecured creditors of the Mis-
souri, Pacific and the Atlantic and Pacific Railroads met
yesterday at the Fifth Avenue Hotel. in pursuance OF an
order of st. Louis Court made in the interests Of ST.
Louis County, which the Missouri Pacific road IL al
leged to be indebted to the Of S72o, 900 for
which the Atlantic and Pacific road If, II s claimed,
responsible under the terms Of the lease Of the former 10
tho latter road. Herman Richeen, the County Treas
OF ST. Lous County and Francis g. Bowman, attor-
ney for that county and many others through which the
Missouri Pacific road runs, present. Mr.. Bowman
aid that in 1865 loan made by st. Louis County
to The Missouri Pacific road amounting 10 100000 with
interest at per cent per Rnnum. mortgage
upon the road contemplated security, but il was
executed. The interest on this debt had been paid
at the rate OF 81 900 per month"; with additional
~ 900 in December Of each year by the Missouri Pacific
road up 1872 and by the Atlantic and Pacific after
ward but interest had not been paid either by the Mis-
sour Pacific by the Atlantic and Pacific road under
The terms of the lease referred to- since June last MI
Bowman added that the Atlantic and Pacific road had
failed pay due to ~. Louis and the Supreme
Court decision 70 the effect that both roads were
liable FOR county, State and municipal taxes. These un-
paid amounted TO 100000. Investigation had
shown that there substantially unsecured debt ON
Missouri Pacific rond other than that due the eon-
ties and the Bonneville Railroad Company, aud
that there cond Others owing the terms or the
LEASE which limited tho powers OF the Atlantic and Pa
cifc road 10 bind the Missouri Pacific IL
had been discovered that mortgage loan OF
-, 900 900 the Missouri Pacific property being
disposed of by the Atlantic andPacic Company ith the
road under this mortgage, which, it claimed is void and
fraudulent under the terms Of the lease Mr. Bowman
declared that the disposal OF these bonds Of itself
act of bankruptcy. aud that ST. Louis County ordered
proceedings 10 be instituted either 10 set aside ths
mortgage fraudulent, else 10 throw the road into
bankruptcy The county therefor last 1hnrsday fled in
II Louis petition In bankruptcy, and an order MAS
entered 10 show cause why the road should not be de
Mr. Bowman said the representatives OF the county did
recognize creditors the officers oi the road whose
claims a large amount would BE- disputed for reasons
which he did not feel a! liberty TO mention ne thought
shoud bc publicly offered for sale Ostensby for the pur
itOrs when the bonds themselves had never been offered
In payment 10 ST. Louis County and the other counties
which substantially the ouy unsecured creditors of
Clinton b. Fisk on behalf of the road said that at the
forthcoming adjourned meeting OF creditors he would
cndeavor TO show the ntter fallacy OF Mr.: Bowmane
statement TO expose tho origin rise and progress OF
this most infamous raid the Companys credit" "A 10
the 100000 uc St Louis County there question,
aud the county officials had been very enent IN their
debt Of the Missouri paS9 as io%gs ., ,ss ,
For Improvement boEds on account OF equipment Of the
Mr. Fisk asserted the real funded debt OF the road
had only been increased by the mortgage S500000 and
this had duly authorized by the directors and stock
holders Mr. Bowman asked Mr. Fisk to be prepared 10
answer the forthcoming meeting the following ques-
since yon admitted the issuing Of the $4,000 900 win
You Outstan1nS 10 whom issued and or
What and the amount realized with the dates OF
S %S S%Ss 3 no as SfS
s M ESa @ s @T 10 s s So for ss
ard that the proceeds are to be devoted to the liquidation OF
Mr. Flax then agreed to waive all formslltics and to
submit examination under oath, and an iDyestiga-
ton Of the books Of the Company at the next meeting of
unsecured creditors OF the Atlantic and Pacific Road