The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-04-24

whether Of the first or second series,
should be treated by the committee as of
equal value, whereas complainant bonds
were of much larger value than the bonds
of the second series. That the resolution
was brought about by reason that Oster-
berg or other members of the committee
had some interest in said second series of
bonds, or through the Vaccinations of the
holders of said second series. That the
committee intend to distribute the pro-
ceeds OF the property to the holders Of the
bonds equally, without regard to the
decision of this court
The bill alleges that the holders of about
three and half millions of the bonds have
advanced and paid in 20 per cent to
Osterberg; but that the amount so paid
in is not sufficient to make up the amount
required and pay the balance of the bid
of Osterberg; and that recently the COM
mittee have made loan of $3.50, 900 of
the Austrian German Bank to complete
the payment on the bid of Osterberg,
agreeing to secure the same by first
mortgage bond upon the railroad property;
and that Osterberg is about to perfect his
title by taking deed to the road and con-
veying the same by way Of mortage or
otherwise to the Austrian German Bank,
in fraud of compliments rights, and that
the bank, when they arranged for said
loan, had full knowledge of her rights and
the rights of other similar bondholders, as
she is informed aud believes.
The bill alleges that Osterberg repre-
sents that he has been offered $l,50O,OOO
for the road since his purchase, but that
he rejects the same; that a company had
nearly completed arrangements with Os-
terberg for the purchase of the road
| for a much larger sum than 81 100000,
but that the arrangement was broken off
in consequence of demand by Osterberg
for bonus Of 100000 for himself, or for
himself and said committee; that their
conduct in that behalf was gross fraud
upon the rights Of the bondholders and of
the complainant; that the property ought
to have been sold, and should now be sold
for the highest prise that can be obtained
therefor, and the money advanced by com
plainant and other bondholders be re-
| turned to them at the earliest moment.
That Osterberg has formed the project,
and it is his intention to continue in the
control of the property and to operate it as
railroad manager so long as he can do So
or to compel the purchasers thereof to pay
large bonus to the use of himself or the
committee before he will consent to the
sale of the property.
The bill further alleges that Osterbere
took possession of the road in November
last and has ever since been operating the
same, and that his management and oper
ating of the road has been failure. Thai
instead of making it pay for running ex
penses and necessary repairs he is losing
money, and the condition of the road
financially is growing worse from month te
month. That during the five months OF
his management there has been a net loss
OF $4,000 or 100000 That he has drawn
out for his own use as salary the amount oil
9,767. SO, and also u further sum of $40, 81
Thich he has called interest. and which hi
RENTED to a relative orr connection of hi:
in the city Of New York, and which com
| plainant is informed and believes he con
yerted to his own use. That there art
other large amounts of Indebtedness fer la
Dor and materials furnished for the use o
the road outstanding, and not embraced
in the above. AIMED liabilities, and not We
appearing upon the books Of the said Os
terberg as manager of the road.
That Osterberg is not man Of any con
-
no property in this country, and that
THE COMMITTEE AND osTERBERG ARE ALI
ALIENS.
and complainant greatly fears that if Os
terberg is allowed to take the title to tn
: property, or to operate it aud handle it
funds, Sue fears that liens will be create
against the property, and its income dissi
: pated
I The bill prays that receiver nay b
Q appointed, and that Osterberg may be II
n quired to account for his actings and d.
. ings in the premises. That new trustee
n may be appointed to manage the property
and to distribute the proceeds
The bill is brought in behalf of the con
plainant and other bondholders similar
0 situated, who may come in and contribut
II to the expense of the suit
S The bill is filed by Messrs Wilson
e Perry, Of this city, as solicitors,