The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-05-22

to purchase. The respondent also asserts
that Robinson, when a receiver was about
to be appointed for the Rockford road
came to him and asked for assistance in
making some money out Of the road as
return for services rendered, when Oster-
berg suggested to him the propriety Of
purchasing Rockford bonds, and recon-
mended him to firm Of New York bank
ers, who,
oSTERBER BELIEVES,
advanced all the necessary funds except a
small margin, wherewith the petitioner
made purchase of committee certificates
to the face value Of 10000, and the bal
ance of the certificates, amounting to $50
900, were taken by other parties who are
satisfied with Osterberg's management
A copy Of these certificates, in German
with translation, is appended to the
answer. Osterberg denies that but $780,.
600 was necessary for the completion of the
road, and he asserts that Robinson wei
knew that a much larger amount was
needed to put the road in repair. He also
states that the plan for raising the
requisite funds was adopted at a genera
meeting of the bondholders of the road
Osterberg admits having received from
Robinson $14, $1,000, for which he gave
receipt, but he charges him with duplicitl
and deceit toward the committee, and says
that he has been guaranteed protection
against loss III some way by parties befor,
commencing this proceeding Robinson
had his name proposed IN court as a candi
date Tor
THE POSITION OF RECEIVER,
but it was not satisfactory to the Gables
and that when W. H. Ferry was appointed
to the place Robinson made frequent com
plants, representing that Mr.. Ferry's &C
tons were detrimental to the interests o
the road, that he did whatever the Cable
and the Chicago and Northwestern Rail
road company asked of him, and that il
case of accident no redress could be easily
obtained, ETC., but that as no proof coult
be found of the truth of these charge,
against Mr., Ferry, no action was takel
against him. But Robinson and Oster
berg went together to Davenport, Iowa
and at a meeting of the leading men there
Robinson asked Osterberg on what terms
a sale Of the railroad property could b,
effected Osterberg answered that hi
would sell the road for $640,000 in casf
and $1,000 900 il bonds. with the expense.
Of the committee in cash; that no assess
meat need be made on the bondholders
The affair was temporarily dropped, bu
after Osterberg visited Europe, and on hi
return, in the fall of 1875, Robinson stated
to him that the people along the line O
the road were anxious to secure the roaC
against the Gables and suggested tina
Osterberg should again 20 to Davenport
agreeing that he (Robinson) would, if
A PLAN WAS FORMED
for the sale and operation of tie road il
that quarter, take $4,000 Of stock in i
and use all possible influences with hi
friends to induce them to become pur
chasers, but he first required of Osterbere
written agreement to carry one half O
this $4,000 worth OF stock for one year
and to give Robinson the option at the enc
of the year of taking the amount so held, anC
redeeming it with committee certificates
at so per cent. Again, shortly after this
Robinson insisted that Osterberg shoulC
place at his disposal $4,000 of the full,
paid-up stock of the proposed organization
Continued on third page.)