New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-08-04
Tilden's Railroad Piracies.

A New York letter IN the chicago tribune,
dated July %, throws light upon matter
the Associated Press has placed before the
public in very ambiguous manner:
Allusion was made in my dispatch q few
DAYS ago to litigation between the st. Louis,
AL. on and Terre Haute railroad and Samuel
j. Tilden, in which one of the latter's
operations in the railway wrecking line was
said to be narrated. The papers in the
case have since been supplied by the agents
of the road in this city, and brief sum-
mary of the allegations will prove interest
ing reading to delegates assembling at St.
Louis to nominate candidate for President.
A foreclosure of this railroad under its old
form, when consolidated with the Belleville
and IllinoistOwn, was entered d in 1861. The
ckholders appointed committee, con-
sisting of S. j. Tilden, Robert Bayard,
Joseph Tuckerman, John G. Richardson
and Charles Butler, to buy 1t in and reor-
ganize the company. They did SO March
Tuckerman, Richardson and Russell Sage
were made the new incOrpOratOrs.
Tilden, as counsel of the company, was
empowered to supervise the reOrganiza-
ton and the new company being author
lied to issue bonds and stocks to settle
the liability of the old, there was placed in
Tilden's hands s., 200, 900 of first mortgage
bonds. 81 500, 900 of second mortgage bonds.
and $3.50 600 of stock.
A, C. Flagg, the receiver of the old road,
made report to the stockholders OF the
old road in 1868, and from the report the
following allegations are made, and answers
from Tilden demanded. The claims settled
by the first mortgage bonds OF $2,2oo, 900
aggregated, according to Flagg, only
$2,O42,140 Al, leaving balance IN Ill
den's hands of $751; SO. OF the 81 .5OO,-
sc
| report says only $4,369. .545 80 was
used, leaving in Mr.. Tilden's hands
$30.i54 IL to be accounted for. Of
| the stock $3,750,000 was to have been is
sued, but, in fact, 81 OOO, 900 was put out by
! Tildep, 600 without SPECIFIC author
| ity. As far as known, Of this sum only
| $3,5OS, ,2l5 Is was used, according to Flagg's
| answer to the complaint, for q balance OF
$49l,7 Is of stock. Another allegation is
| that Tilden got 100000 for his services in
| reorganlzng the road The complaint,
| which is in the United States Circuit Court
| of this district, on suit to recover
| 81, 900 900, is against all the committee, and
| concludes as follows:
Your orator alleges and AYERS that said
F! defendants, or some of them, have refused
| to render any account, or to give your
orator any explanation OF the manner IN
which, or purposes fer which, said bonds
or stock were issued and disposed of, and
your orator charges that said surplus bonds
aud stock have been unlawfully retained
By and divided among said defendants, or
issued and disposed of by them in violation
| of their duty as members of said purchas-
! ing committee and board of directors Of
said corporation, complainant herein, and
of the trust and confidence reposed i'll them
as such, and that the pecuniary liabilities
| and burdens of your orator have been there
by unjustly and unnecessarily increased to
| the amount OF more than 81 ,0O0,0 900"
| The only reply of Mr.. Tilden thus far has
been an application tor time until July to
answer the complaint. This will be after
the St. Louis convention, and too late for
him to profit by his explanations.