, 1876-08-22

complete. Now thnt his answer to tho suit
brought against him has been filed, VIC havo
both sides Of tho case. The owners Of tho
road arc fairly represented in report re-
Gently made by Committee Of Investigation
appointed by the stockholders, who have
asccftained the fncts as well as they could
wlilo T1LpEN withheld from them tho old
books nnd accounts showing III detail tho
work Of reorganization Of which he was tho
Legal adviser aud one Of tho Trustees. This
investigation, begun Jnne 3, 1876, was tho
basis Of tho lnws,it instituted Ngainst T11pga
anil Ills associates after they refused either
to giyo mp tho trust funds which they had
uisaprropriated to their own uso or to srll-
mit tho case to arbitration; md It il this
lawsuit which Inns recently called forth Mr..
T1LpEa'a answer.
Il became nocessary-in 1869, wo believe
to place ths ST. Louis, Alton & Ierro
IIaMte Rnilroal on new basis. The process
consisted, NC presume, Of wjping out HOMO
Of tho stock md otlIor indebtedness Alto
gotl.er, and Offering now bonds and stock on
different gcalo for the bonds outstanding.
Mr. TlLpEH was IN expert in this business.
Indeed, ho wns professional rcorganizcr Of
railroads. The matter WINS trusted into lis
hands, aud ]lo associated four other gontla-
men with him. Tint it was d trust is evi-
dsnt not only from tho nature OF tho trans
action but because QUO OF T1LDEH's assoointoH
--STr. JOINT e. R1CuAnpsoK-reslgnod mud
transferred liH tlnlics to tho others, mud ia
doing 10 nigncl hisnsolf rs trustee. Mr..
T.IprN aud the remaining throo CHARLES
BuTLEn, RussE11 SAGE, and RonEnT DAyAnp)
also received SJG, 600 in foes for their scr-
vices, which woro purely nominal
aud covered space Of not more
than six months,-which further show8
TINT taoy regarded themselves rs agents, at-
tornoys, or trustees, md took pay-good,
sound pay, too-for their services in that
capacity. They werc, in fact, purchasing
committee, their duty being to buy in tho
rond at Marshal's salo anu then reconvcy it
to tho nav corporation on ncw basis, dis
tributiug the now bonds to tho old honlhold-
crs plo rata. Thoy themselves invested not
a penny, assumed no obligations, and lid
no work requiring either grent ability or
timo. Tor the convenient distribution of the
now bonus, and in order to govern tho cxact
proportion to 10 allottod to each OF the
creditors, q 1argor amount OF bonds were
printed aud numbered than were required.
After distributing the tlrst-lnortgage bonds
and satisfying nil. tho creditors WHOSE
claims to this class Of security
wero Wild, there remained 9131, 900
Of these bonds undisposcl Of This
amount OF bombs was hold In trust and as a
surplus till 1870, when RoDgnr DAyAnp, net
ing unaor tho ntlvico OF 3lr. Tl1pEs, ns lio
himself says, divided them equally betw cen
himself and his throo associates (of whom
T1LDxA was one), and also divided amnug tho
same parties tho interest that had accrued OIL
them since July, 15G2 since TINT time Ti1-
DEN and the others hayo held sAese bonds as
their own personal property, and drawn The
interest thereon with tbs aamo regularity Us
bona .fat bondhoidcrs. There arc also somo
Of tho secoud.mortgago bonds. md somo pro-
terred aud common stock, not satisfactorily
accounted for; bnt. az hIr. T,tpEs refusctl
to gi,o up tue books, 1t was not possible to
trace them. The appropriation Of thu
| Slsl 600 In drst-n1ortgage bonds is known
definitely from aIr. DAyAnDs admission oi
the facts.
Now ns to Mr.. T1lpENs answer to thi:
state Of facts. lie does not deny, but claims
that lie and his associates did mol act ~
.sustcos, but bought Tor themselves aus
sold what they bought. "1he difference,
be says, "betwcen what We gavo and wha
wo sold for Is $.s4, ,oo0." Thon. it this was u
speculation on the part Of hlr. T11pKs, in
which ho and bis partners realized nearly {
quarter Of million Of dollars in six month";
without investing penpy, what right hai
lie 10 charge tho stockholders $50, ,50o for Ill!
services az trustee or attorney? While re
coiying pay as trustee, what right Ind 10 tt
"gobblo" sl3i ,0o0 arst-nlostgago bonds
which, being surplus over ail just claims
should have beon cancelled for tho benefit O.
tho other bondholdsrs and stockholders
Either Mr.. TIpgs betrayed trust aut
swin.llcd the road out Of $13l ,oot
whils acting as its attorney, or, hav
lug gone iuto q Speculation On hi!