New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-09-10
~,7n1n,s RAILROAD RECORD.

TILDsr,s RAILROAD RECORD.
Sorry Expsrissee Of The Chicago al
Alrsn BsadAelders.
The manner in which that ioguishet
CORPORA tom lawyer, samuel - tuden, viii
bis fonr cosdiutors, executed the trust 70
o.s .S; - them nv the bondholders of the 81
Ro ",,;. Aison and Terre Hsute railroad, ani
10 anti has been brought in the Unite(
Statas courts to recover the VISA ,OOO yet IN
oooconntad for by those trustees, IL tolerably
IN Enovn. There il another Transaction
Som.var. of 4 similar character, In which
th;s same eminent personsge figures, which
-. nat received the attention that it,
artistic excellence deserves: although tas
amonnt of money involved 10 tribe !eaU
than in the other cases.
r. snpesrs that some fourteen years a2o,
80 Cb;caoo and Alton railroad, like only
t .ao ,nanv other such corporations, becama
S w and was put into the hands Of Z
ra"a;ver. M. James RoOb. Shortly sfee
80 a committee of five gentlemen repra
..nt;no the bondholders, acting under q
s s"rsamant subsequently ratified by sal
hSecndholders. appointed Samuel j. Tide
I'D M. Mver. of New York, sub-commtt
90 en,A IN nurchase the road, and pay of tho
claims against it for which Judgments wesa
o,ven by the courts. The exact amount of
these claims was not known At thas tina;
and it was therefore Impossible TO provids
The trustees with the precise sum requisite
W meat them. But q round lot of good q.
onr;t;ss. bonds. and COMMON and preferred
stock was qiven to Messrs. Tiiden and Myer.
daamed fully sufficient to cover all claim
A il proved. there was balance of b.
fwasn 1l2O. 600 and $125, 900 left over altar
having them. The exact figures can not b.
ascsrtained. iuasmrch "a no account of thu
trnst has been rendered; but there ts salts
factory evidence on record that the amour
is between the limits above stated.
This balance the trustees have refused to
tnrn over to the rightful owners. At 6rst
they made demand for $oo,Oov % con-
pansation for their services, offering to ~
nit the remainder. This exorbitanr propo.
si.ion was not accepted, and now mona Of
the money is to be had without lsgal 10.
srraint, To obviate all possible objection,
the corporators of this new company, fx
whom Tilden and Myer were acting, offered
To give the trustees . bond to indsmAifY
them against any further claims from Cd
creditors, although the possibility Of any
such remaining at the present day 70 int
nitelv small; bnt these gentlemen refuse +
give up thu. balance of el2o.OoO, or Sl25OM
even under such circumstances.
This is not the only transaction which
the Chicago and Alton people have bad
with Tilden and Myer. Subsequent to the
above arrangement, the new organizatioa
authorized their trustees to issue *ooo.OA
bonds, to be redeemed by An annual sink.
ing fund OF 81, 900 after liked date. This
&72, 900 was duly provided every year, and
the bonds regularly redeemed and canoelsd.
until August, 1875, when but $35 900 YET
remained outstanding. This sum M
placed in the trustees hands, but they n
fused to apply it to the true end until thAy
should first be paid 42500 tor their saf
vices. To those not familiar with the man
agement of such truste, the exorb:taues Of
this demand will appear when it 10 stated,
by way of illustration, tina. trust of sub
stantlally the same kind, involving $s.009.
600 lover thirteen times the amount ssass
by John A. Stewart aud q single
colleague; and Mr.. Stswar-, who was
treasurer of the United Ssstas
under Lincoln, was what was called .
'hi2h-priced man" for such work. In the
present instance the utmost compensasoA
which the most favorable CONSTRUCTIVE Of
existing laws would allow is 5000 to each
Of the trustees. This has been rendered By
the company, but refused. While taesa
negotiations were pending, however. the
managed to obtain @l3.0 900 of the
bonds, presented them tof pay.
ment, and succeeded in obtaining the
money and recovering portion Of the said
e35 900. The remaining 81, 900 the trustees
refuse to apply on the Outstanding bonds %
that amount or to return to the COMPANY
For neither this transaction nor the Other
has any account been rendered, nor can any
be ELECTED by ordinary means. Suit, there
fore, was brought early in 1876 to compel
11iden and Myer to furnish the same, and
30 to effect recovery of what ia illegally
held from the real owners.
The foregoing facts are matters of record,
and TRANSFERRED before Mr.. Tiiden's Pres-
Dental candidacy was generally expected.
The suit is not therefore brought for politi-
ca effect but purely for business purposes
-Nev York Times.