The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-07-07
COZ. TILDEv INDICATED,
TIE Answer 10 the Cempisius ~ ne Chicsse
and Altos Rsiipcad oc.rvenr

From ne CAfr11o Times
About two months ago bill was nled In
Company against Louis II. Meyer, i'm pleaded
with samuel j, ridden, Governor OF New York,
oh. rsing the defendants with having been APP
potntea, Nov. /, Isfs, trustees Of the Mississippi
Railro d Comp nv and its successor, the z u
odeo and Alton Raiiro d Comnany, and while
lently for their own use ree sums OF money,
bonds. coupons, SC, belonging to their trust.
Yest erday morninR Mr.. Meyer filed his answer
vindicating the aspersiuns az inst the character
The answer admits that, on Oct. I, 1882
the Chicago and AIississippi Railroad COMPANY
executed to Azariah q. Fl,gg, David Hoadley
and John Earl Williams a deed Of trust In the
nature ~ mortg ge, conveying certain y oper-
~, rights. and franchises for the purpose OF Sc
curing payment on series OF Its Corporate
bonds, amounting IN the aggregate to s2OO0,OOO,
with Interest OF the rate nt seveu per cent June
j, 1853, anotner f20DO,000 worth OF bonds, the
same ~ the former. were execu eu by the same
road to the me parties; OF his last mentioned
series bonds to the agert ga amount Of about
tl,5D0OO were Issued Jan. TO- 1891 A third
Il ri Williams aud George NJ. thus, con
yeyine to them property to the amount OF
$1,000 600, bearing 10 per cent. interest. ,bse.
COMPANY became the Chicago, Alton and 81.
bouts Railroad Co and all these rights
were IT nsferred to this company, winch In the
year 1857 issued its corpora Q bonds, bearing 8
per cent. interest. Holders OF the 10 Der cent.
third mortgage bonus to the amount OF t36S5CO
Of the 8 per oen BOMBS. but With the privilege
OF repossessing tnemselves Of their 10 yer cent.
ponds I pleasure. jan. 10, 1890, the on stand-
Ing debts secured 10y MORTGAGE on the st. l. us,
Alton and Chic. 90 Railroad amounted to "a
bb0IO prior to this daie this company had
mate default In the payment OF Interest. and
suits for foreclosure OF these three Issues Of
bonds were pending. The entire corporate
property ~ the rosu was In the hands ~ duly
appointed receivers, and meeting OF the bond.
holders was called ana an appointment OF true
tees and attorneys made to attend TO the Ousi-
ne OF the inrovent road.
The answer goes on to st,te that July %, 1891.
at q meeting neld In New York. the defendant
and TIlden were fully uncovered to purchase
the roaj, which they accordingly did Sept. 7,
1882. Oct. OF the same year, the road was con-
veyed TO tbem by the special master commits
sioners, for the coDsid, ration Of sl,6O0.0OO.
Under the modified agreement tue ATTORNEYS
and trustees have received receivers CO tin
Gates, securities. bonds, and coupons against
the Chicago ana Mississippi Railro d amounting
TO tI,WO,OUO. and distributed bonds and stocks
issued by the com plsinant to the amount VI
t7,pO0OO, Der ides supervising abd controlling
the disposition OF the 5000 additional nrst
mortgage bonds. AT the time when the de-
PENDANT took the road lin hand, MIR. Mayer
| states, thess bonds had no marketable value,
and could not be sold at the Stock Exchange In
first mortgage bonds sold for about twenty Eve
per cent: Of the par value OF the Principal with
all unpaid ana overdue coupons attached. repre
| second mortgage bonds sold for seven per
| cent. Of their par vdlue. Within year
after the change OF management, the
value OF these bonds rose rapidly, and were
quo ed at market value equal to 70 per cent
OF me par value of the surrendered Chicago and
tuted both In Illinois and New YORK, auestio nins
| the validity Of the actions and proceedings oil
the Trustees; difficulties rose between the lat
| ter and James kObb. who was the receiver oil
the road during the litiyation, respecting Ger
tain coupons, and a full examination Of Tho
whole business was entefe ! INTO. Meyer had e
| be on hand almost constantly to explain anc
| certify to different things. ana he found the ac
counts OF the trustees correct In all respects