, 1876-10-15
The Chicago & Great Western
Railroad Scheme Con-
ceived in Fraud.
rhers Wss Ee Intention to Build the Eoad
The Bonds Issued to Fleece
the Public.
The City Awarded the Ownership
to David A. Cages CLAIMS
Under the Jewett Trust
Deed.
Childs, Stevens. Duncomb, and Badger
Pictured by the Court.

G4Cku4tA U4 kuC kVH4 r.
Judge Williams gave long and exhaustive
opinion yesterday morning in the Circuit Court,
il chancery, in the Riverside Improvement
cases. Anybody who knows anything about
these cases knows that they are, to say the least,
exceedingly complicated. The decision virtu-
ailr covered twenty different eases and LOB psges
Of legal cap. Hence only brief abstract can be
giren The cause embraced four original and
eight cross-h1ls, all claiming affirmative reliefin
regard to property at Riverside. The interests
Of the complainai,ts, chief among whom is David
l. Gage, we're so interlaced and SO complicated
that by agreement of counsel they were all con-
sidered rs one ease. Twenty-four counsel have
been engaged in the case, which has been In the
courts for some time past.
The Judge, In starting ont upon his decision,
referred to the curious history OF Riverside,
with which the public is somewhat familiar.
The Improvement Company and the Water and
Gas-Works Company were in debt from the
start This Indebtedness constantly increased,
and all there WIS to pay it was the sum realized
from tie sale of q few hundred lots. Loans
we're made, occurred By mortgages and
1rust-deelis upon these lots, and the
most enormous interest was demanded and paid
by the borrowers. Bonds in the sum OF 81 ,G00,
600 we're issued in 1871, secured By the
Grcenebaum trust-deed. The perpet-
ual and increasing lmpccuniositv Of the
Riverside Corporations, and the fact that they
had nothing hut promises with which to pay,
must have been generally understood. Many
of the shifts rcsortcd to by the skrewd manipu
lators Of Riverside finances were only the ut
tempt Of Debtor, really insolyent, to conceal
his actual condition from his creditors, and to
Induce them, III their Ignorance Of present facts,
to make further advances, or at least delay any
effort lor the collection OF their indebtedness.
In the infinite confusion Of titles, the most that
any Chan> cilor could DO was TO aim at substan-
t'al justice BY protecting the rights Of
Iona dae creditors. aud rejecting such
A great loss must fall upon Ill ereditors,-it
should fall heaviest on those whose claims arc
the least merlto-ious. Counsel had virtually
abandoned their objection to the Jcwett trust
deed, and the Court must. Of necessity. settle
the conflicting claims Of the numerous creditors
upon the assumption of thcvalidity Of that deed.
Assuming the validity Of that desd, the Court
proceeded to consider the Peck bill, brought,
among other things, to reform the Jewett trust
deed in certain provisions having reference to
Included in said Geed, and for the applica
lion Of the proceeds (6rst) to the payment
cf the bonds and coupons held bT
tic romplainants- 1t had been represented
~ them by Childs, an officer i'll the Chicago d.
t;rcat Western Railroad Company and the Chi
:ago i Great Western Railroad Land Company,
that the Riverside Improvement Company, OF
which be was President, having become greatly
involved, that Company and the Gas and Water
Companies had conveyed Ill their 1ands aud
panv, and that number Of wealthy men in
New York had organized a aConstruction Compa-
NJ to build railroad to be called the c. G.
" Railroad. which was to issue its bonds to the
AMOUNT or $4,000, 600.
to be secured by a trust~deed upon the railroad
property, and trust-deed upon the real estate
of the C. & Il. ". 4. K Land Company, to &C.
cure u part Of the bonds to. be used
fur the payment Of the Indebtedness OF the
improvement Company, and the remainder
We're to be used TO pay the Constrqct,9n Com a.
The parties that al the Judgment and secured
creditors OF the improvement Company. except
one, Ind consented to surrender their securities
aud to accept the bonds OF the =. d u: W. Nall-
road Company, in lieu thereof, secured as aboye
mentioned. Louis Saphied WAS the person re-
fusipg. lie had trust deed for $75,o00, past
due, and had advertised the property tor sale,
aud this claim was prior to all other claims, and
unless money could be raised to pay Saph'ed
The arrangement with all the other creditors
would have to be abandoned. The creditors,
en3 ia.nr i,s T., the han7a nf ! 1eErtt in
es"r.vs - t'e ratc-iod hv him when ali the
creditors had released their liens Complain
ants aver that, relying upon Childs' statements,
sia I ow r;. +b M tn have FINISHED with
inIe,sad "flI, roiiraa5 fai1itice hV te building Of
The neS raa 4i.er adVancrd ss5 mn in cash and
gaSa no,'.s 80 -, sS1 ~ sch;tI, have heen mid.
The Land Company giving said conpla1nants ITS
ron,,,ao, ~ ~ ;>nnds ~ tba Latter comnan,.
ser,,r,.1 t., ru and form;nn a first lien
unon th,. nronertv Thc hill furthe7 alleges that
ir pee 49, ~ - 1po-+,r,-a ras then 1irn mon
a nort;nn ~ +ha n,o3,ertv covered INV the trust
ad ari, q ,1at ,n1 eh Ter eonled
tn nar ~ e.a. W.. =, nrote+tion tn the hnnds
he1d Nv tha,e s9 .,,at +be s,;1 i'm honds wcr,,
ofTcra1 ~ eai ~ While auction. and comn1a;n-
ants nn,':h.sa,i +ham. thot the interest unon
the honfs hcfra met 3,,e md unnaiI. cou7niaiu-
ents had r;o1;3 fo derlarc and did declare the