, 1876-03-24

GOV. IItQEN.
cHooEE0 TRANSACTIONS OF BL1prEnr HAN-uoBK
TO MEET aEunuE Il. rESDLgTox.
81. Lons Globe -Dtmo-rat, March 20,
Newspaper readers hare probably noticed
within tho past low days that suit haa been iu-
htitused in New York by tie st. Louis Alton j
Iesso 5lnHte RatlEoad Company Rga.nst Sanuot
j. T!ldcn md othcrs, for tho recovery Of mor<
than 1850. 900. The proceeds of M alleged fraud
committed by tictn whilc controlling the organ
izatlou so1ao years n8o. Knowing thot Mr. Will
lam D. tirlswo1d, President Of tho st. Louis
Ilnnetor Company, was, at the time Of tho CON-
1nlsaion OF the acts out Of which the suit has
grown, President OF the St. Louis, Alton h
Ierro Ioute Railroad Company tho Globe. .Dsm~
osTfs sont reporter to thas gentleman, NTH =
FLOW to obtain tho actual facts Of tho caso
The substance Of tho accusation" said Mr..
G1iswoltl. .'ass'pped of oil apparel OF words md
forms. IL this That Gov. 1tlen, in ooufeuera-
ton with Charles Butler aud Russell Sage. Of
; Now iork, m about tho year 1854, appropriated
amounting TO upwards OF s2sl. 900, and tLst
these bouds carried som-annuat interest from
1sG2. and thht lie whole amount roaized on tbs
bonds and lntereas is now not lcrs than $500 600.
Nepozte "P1eaHs state the main facts OF thu
transaction, and whore tho crookednoea couos
Mr. orlswold- -"1a 1sel-'5o tho To,ro uaute
Alton L St. Louis Railroad Company was raor-
eanizcd by foreclosure Of the dofaul.od mort
judicial decrco and purchase Of The the
same by Tho parties. in interest, through
them. chilled q " Purchasing Committee" por-
slant to q formal tlan Of sale and reorganization
slgued By s.d pn.ies In intesost, tl1ey being tha
hond and stockholders Of tho original corpora-
tion T!ldon. sagc. aud Butler wors of tbs
~ Purchasing Committee" who purchased tho
road at the sale. Tho consideration. or pur-
chase money waa satisfied by tho bonds for
Wh!ch tug foreclosure sud ealc wero dccreod,
which Ind been surrendered by tho holders for
TINT purrose.. Those holders or old bonds wero
tatlai!ed for tho aamo by M isano Of now Bocurl-
tles "a bouds and atock by tho now corporation,
pursuant to tho plan Of reorganization. Tbs
practical nod6 Of accomplishing this change Of
eocur!s!os vaa thla; Tho new corporation esti-
1nn.a at9a " calculation to quantity Or number Of
common aud preferred. which would b.
necessary to cover ali tho intoresta and
rights embraced in tho purchase. This
could only 10 done approximately. and thas
theEo might 30 no dctlc!oucy ia tho provision, Il
surplus Of the sayosal classes Of bonds aud
stock was prepared, and the wholo amount
placed in tho hands Of tho ruschssinR Commit-
tee; from which inc tae 5uat distribution wea
BY such distribution 10 all persons who sur
rendered thcls old securities. according to tia
M nan of rsoEena.Saon q, az excess q bonds to
of common and sl3l.Uou Of preferred capital
stock, at It's par yaluu, remained.
'Nell.' continued alr. Griswold, 'tst meet
Ing OF tho Board Of Directors Of tho new COR
poraton. n Now York City. in tho summer Of
1852. tho question was discussed ~ to whetIer
the surplus Of eecsirtiea should be cancolei aud
destroyed. or should bo packaGed up and placed
~ secure deposit for such possible future use a.
tho wofaro Ut tho road and tho iuso.ests Of tho
Company might require. The latter alternative
measure WAS agreed to. l do not remember whos
tho records OF the Board Of Directors contain
thing, but y will bo remembered by members Of
tho board thon present. Hon. Anthony Thorn-
san, lato Judge Of tho Supreme Court OF 1lii-
uols. MAS Quo Ut tho Directors, aud was present.
tary and Tse2suror. and naa also nroseut. A}1sr-
ttdrds htese bonds toef1e 06sfsdcsed {rNl Their
ptacs Of iepos!. and the s'.l a9ai,.st 7Iide,,
Sage, a'al Butter is no,o brought for ttefr re-
n'EGctors o. tl!9 low organization, and continual
In 1873. It being discovered by several hold
ers Of tlia stock that the Company wsra paying
!nterost Oh MI undue amount vi tonds aud that
the coupons of tue bonds which woro Ut tho sur
plua weFo bolng collected semi annually, few
OF thcm combined mud resolved to maks IN
to t9se taas sna 70 pose
we're refused a. tho general office la New
York. sn inspection Of thu voting ragistora Of the
bonuho!dutb, Which wcro under the control Of
come OUT TO IL. Louis 10 a..ond the election, Of
Directors in Juno OF that year, with auch votes
NJ they could lind without such registers, and
they clnpioye: all ablo Young attorney aud couu-
TO aid to uueArta tAcso aubtcrranean operations.
Headed BY Dir. Whitney, thcT appeared at tho
,uoetinX of the stockholders. which WAa compos-
I'd Of Char!os Butler himself, carrying the pro-
pon.iorating proxies OF tho Naw York Hing aud
tlalr dnpes. With few pe1sons from Illinois,
whom he had called together for tho occAs|on.
Mr. Whitney made tho hat charges, and demAud-
excessive lssuo Of securities. His demands wsse
Ie&uHeQ. liz pQeseA fe4QIutIQu Of iQqQi{Y lnie