, 1876-04-05


Teno Haute, Alton L St. Louis, now tho So.
Louis, Alton l. Terro Haute Railway, ahow-
ing how sAM TuDEs and Lis associates Of tha
Purchasing Committee did tho Company out
Of 1894 ,ooo hna drawn from TnpEN IN OK
plantation and dcfense. GR1swo1Di q statement,
fortified by tho dates and figures, was that
when tho stock and bond holders found It
necossary, in order to eave themselves, to
buy In the road In foreclosure Bale, Tu..
DEN md his associates wore appointed Com
mitteo to make tho purchase. To carry ont
tho transaction all tho outstanding securities
Of tho old Company were surrendered to this
Committee, and with these the purchase was
nude. Thereon stock and bonds Of the ro-
organized Company wazo issued to those sur
rendering tho securities OF tho old Company
IN return for these. The Purchasing Commit
tee, Of which T11DEs WAS tho active manager,
Issued $284, 900 Of tho stock Of the reorgan-
izcd Company In excess Of what was required
for the exchange, which was all tho CON-
mittao was employed to transact, and TINT
S284 900 Of stock the Committee themselves
quietly pockotod, and through 1t TnDEN
and his associates maintained control OF the
reozganized Company. T1IDxN's explanation
and defonse was made through tho publica-
ton Of report to TuossAs DENNY, one Of tho
Directors Of tho road. The gist Of Il Ia
that
Tho Purchasing Committes bought tho railroad
.. They mAds tho purchase In thelr individual
capacity and took individuals tbs legal ns to tho
aaid road, aud became invested with Ill tbs legal
powers, authoFttIes and rights Of purchaaers. Thsy
gsvs thalr Individual obligations for the Surchaae
money, md asttahsd tho*s obligations.
This has brought Nr. GnnwoLn again to
the front, ind ho quotes from the records and
official records showing that Mr. TuDEA's
Purchasing Committed throughout wsro bu.
agenta md trustees Of the parties In interest,
that besides IMDEH was paid ns counsel, 80
that neithor ho nor they could, except fraud-
ulently, acquire any individual interest in tho
tranaaotion. They were employed TO act for
the stock and bond holders, and TnnxN bo-
sides was paid as legal adviser, and, In Ia "
and In morals, all their scta In the matter Of
tho exchange Of the old stock and bonda for
tho now wero for tho bencat Of tho stock and
bond holders. The issue Of moro Of the Inter
seeuriaties than was necessary to effect the ex-
change was = breach Of trust. But, In any
event, tho over-issue belonged not to T11pnA
and his associates, but to those for whom they
were agents-ths purchasing creditors
Of tbs road. Yet T11nxN and the
others Of tho Committee appropriated
tho over.izaue themselves. aud for sey-
eral years concealed that fact from the
creditors for whom they acted They con-
traoted no individual obligations, Is A11. dn1s-
woID shows, alnco tho stocks and bonds Of
tho old Company used In eneeting the pur-
chase ware made over to them a. trustees,
to enable them to mako the purchase. In
tho tsaue Of the securities OF the now CON-
paay for those surrendered, the Committee
simply accounted for their trust. But tho
pretense Of having soted In his individual
capacity with tho other members Of tho Com
mittea In grabbing the trust tunda In sheir
care Ia srplodsd by Tho report Of thu E1eop-
tiyd Committee Of ths road, ono Of tho men,
beza Of which vss associated atterward with
TnoxH In ths grab. Tbs report Il dated
Hasoh 10, 1854, statss sxp!ioiuy that mora ot
ths sseuziuss OF ths rsorganizsd Company
had probably bssn issusd than ware required
for tha exchange, and that thass would b
eAnoalad. Thsss afs tAs tdsnuaL ssanziusa
vhich ths Tztpzu oosanaittss 9obblsd II.