The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-05-22
osTERBERG'S ANSWER.
It is Weak, Untr uthful, and Absurd
From the chicago Times, 90th.


From the chicago Times, 9Oth. |
The litigation in the interminable war
fare against the Rockford, Rock Island and
st. Louis railroad company broke out
afresh on yesterday in the United States
circuit court. When the decision OF
Judge Drummond was made in regard to
the deed Of sale of the road to Heyman
Osterberg. in trust, it was supposed that
the matter would soon draw to close
1t will be remembered, however, that Miss
Jessca Hooper, Of New York, filed an
intervening bill in the suit of the Union
Trust company of New York against the
road, and subsequently Capt. Robinson filed
a petition TO be made party complainant
to Miss Hoopers bill. This was within
the past four weeks, and an argument was
heard on the Hooper bill aud the Robinson
petition, which lodged ugly charges against
Osterberg, before Judge Drummond, some
ten days ago On motion to strike them
from the files Mr.. Hawley, of Rock
Island, and Judge Wilson, of Chicago,
appeared for the complainant and the
petitioner, and for the other side ex-sena-
tor Trumbull and Mr. II, Crawford
Judge Drummcnd, at the close of the
argument, took the matter under advise
ment, and finally decided that the bill and
petition could stand only as original bills,
as in the case Of any other suit, upon the
complainant's filing their bonds and Oster-
berg entering his appearance.
After the granting OF the deed OF sale
this week to Osterberg it was expected
these bills would be dismissed. This,
however, was not done, and Osterberg will
now turn his attention to that little branch
of this litigation. On last evening Judge
Trumbull filed Osterberg's answers to
both Miss Hooper's and Capt Robinson's
bill.
The answer to
THE HOOPER BILL
sets forth that there is no truth in the
statement made that the German bond
holders organized themselves into COM
mittee when the road became embarrassed,
but to the contrary, the bondholders who
reside in various parts to Germany,
Switzerland, and Holland, met at Frank
ford in 1871 or 1872 and selected com
mittee, known as the Rockford committee,
which is now existing, to represent their
interest that Osterberg was himself a
member of this committee previous
to 1874 and it is false that he
and others of the committee had no
interest in the bonds at the time he was
made a member Of this committee. At
this meeting it was not deemed advisable
to foreclose the mortgage on the property,
but at q subsequent meeting, held
March 49, 1874, this step, or some other
that would protect the interests of the
road, was directed, and notification or
advertisement of the fact was made. This
was so that those who wished to join them
phn,,II 1npncfN thnir honda NTH tho
Austro-German bank, and Osterberg was
deputed by the committee to act in the
matter, and the road, in consequence OF
the proceedings, was sold Aug. l6, 1875
and was bid in by Osterberg, as alleged il
Miss UoOper's bill. not for the German
bondholders, but for those who haC
deposited their bonds as directed. This
was done in this way as u matter of con
veDience, he says, and not that his in
dividual interest was greater than any
other bondhOlders. At the time Of the
sale he paid down 100000 in cash, anC
has ut other times paid money, bonds
coupons, and certificates, amounting
in all to 81, 099 l55, 43, and caused to be
paid, on April last the remainder of the
purchase money. as stated; also that ht
has no deed, but considers himself entitled
to one. The committee and Mr.. Oster
berg held bonds of the railroad of the pal
value of about $4.000,000. Among these
were the nine bonds claimed by Mis-:
Hooper, but he had also a power o.
attorney, signed by her, which is nov
in the possession of the committee a
Frankfort
osTERBERG ADMITS.
that he did agree, on the part of him
SELF agent Of the committee, that The
bonds intrusted to him by Miss Hooper
should admit her to an equal interest
with other holders Of like bonds, in case he
should become the purchaser Of the roaC
at the time Of the foreclosure also tha
prior to the time she deposited these
bonds with him, the court decreed that
the first series of bonds should have
preference, as stated in her bill Of com
plant, hut he AYERS that she knew al
about this decree, and that her father
Thomas Hooper, who was her acting agent
received ut his store, No. Ia Nassau
street New York city, on Jan, 90 1875, Q
notification Of this decision; also that the
Chicago Times published an abstract there.
of, which was copied by the New York
journals. Mr.. Osterberg admits that he
told Miss Hooper that she and others
holding like bonds were entitled to $50 &c
in gold on their bonds and although this
has not yet been done, it is the intention
Of Osterberg and the committee to carry
out the intention. He denies that shortly
after the purchase of the road, it was re-
presented to her that it was necessary t
raise $l,000.00O, in order to pay for thu
property, but he notified her that ut
meeting held on Sept. 10, 1875, the inter
ested bondholders had resolved to rails,
$l,OO0,000 by levying an assessment of q
per cent, upon each bondholder for the
purpose Of completing and putting the
road in good order, In answer to th
notification, as Osterberg believes, Mis-
Hooper paid her assessment, it being ST.,
go in gold, or its equivalent in Germany
Meanwhile
osTERBERG HAD A CONVERSATION
with Miss Hooper's agent on the matter
AT the first meeting Of bondholders callet
by the committee sufficient number dit
not present themselves, when second cal
was made and meeting held on MarcI
q last, and Miss Hooper had due motto
OF this meeting as her father called on hin
ON Feb. 25 in regard to the deficiency, an
suggested that it be raised without com
pulsory assessment, 30 that those VIII
could not afford to pay might be spared 4
the sacrifice of their property. After tn