The New York herald., 1877-08-25
A PULL AT THE PULLMANS.

SOUTHERN CAR coMPANY-rwo HUNDRED AND
FIFTY THOUSAND DOLLARS INVOLVED IN THE
ISSUE
| [From the Louisville (Ky) Ccmmercisl August 22l
James L. Berry, Dillard Ricketts,, Enoch II. Paine,
Encch Paine, trustee for Emma B. Lsmont George d.
Moore, John Adams. and J. II. Huber, assignee In
bankruptcy OF Hamilton Brothers, yesterday instituted
suit In the Louisville Chsncery Court against the Pull
man Palace Car Company, the Pullman Southern Car
| Company, George II. Pullman, W. c. Hitc, W. s. +.
Harris, Horace Porter. John Remmer. d. W. Wc'ch,
| r B. Alexander the Farmers Loan and Trust
Company OF tho city OF New York, for large
amount. Tho plaintiffs complain OF the defendants,
and e complaint and action say that the de-
fendant sthe Pullman Palace Car Company. is cor
poraon organized under the laws OF Illinois, ana mas
been 1868 engaged In the business Of manufac-
turing and operating sleeping cars, drawing room cars
and dining various railroads throughout
| the United States, and that George III. Pullman mas
been president Of tho company since us organization
and chcf Of the capital stock anu securities OF
said company such has possessed and exercised
absolute control Of tho affairs Of the company; that
the Pullman Southern Car Company is corporation
organzsd under tho laws OF Kentucky under an act
approyed March 15 1870 and amended act approved
February 13, 1871 and that under the said acts the
company was fully organized on tho lid OF
March, 1871 and has, since the LIST OF April,
1871, entirely engaged in tho business OF OPP
Grating sleeping and drawing room cars over various
lines OF railroads throughout various Southern States.
and that George N. Pullman has been president and
exercised control OF tho affairs OF the company fhe
plaintiffs arc each owners Of shares OF tho capital
stock OF the Pullman Southern Car Company, and
have heretofore requested the Pullman Southern Car
COMPANY 10 institute an action against ali Of the de-
heron to OF them the Indebtedness
duo the Pullman Southern Car Company as herein
alter set forih tho company has failed and re-
fused to do So aud the plaintiffs In thcr own right as
holders BRING this Tor the benefit Of tnen
selves and oil other stockholders OF tho company.
They state that previous thu year 1873 the Pull
man Palace Car Company had been engaged in running
through line OF sleeping cars from Lynchburg Va,
10 New Orleans That in operating this line tho
passed over tho Virginia and Tennessee Railroad 10
Bristol Tenn; from thence over the East Tennessee
and Virginia Railroad to Knoxville; thence over the
East Tennessee and Georgia Railroad to Dalton, Ga
thence over the Selma Rome ana Dalton Railroad to
Caera, Ala; thence over the s. and N. Alabama
Railroad TO Montgomery, Ala. thence over the
Mobile and Montgomery Railroad 10 Mobile; thence
over tho Mobile and Now Orleans Railroad to New Or
leans They state that in January, 1873 the Pullman
Palace Car Company became unable to continue TO
operate said through limo of cars, because Of difficulties
between the company and the Selma Romo and Dalton
Railroad Company over the route described, and II
became necessary TO run the cars over the Western
and Atlantic Railroad, from Dalton to Atlanta, and
thence ovor the Atlanta and West Point Railroad
10 West Point; thence to Montgomery, and thence ss
described above At that tmc, January, l873 and
until the present time, the Pullman Southern Car
Company had aud has the exclusive right oper
road between Dalton and Atlanta, and has the exclu
right 10 operate sleeping cars over the Atlantic
Tney state that In January, 1873 the Pullman Palace
Car Company applied TO the Pullman Southern Car
Company Tor me right OF operating its sleeping
cars over the roads named, TO enable them to
tinue their through line from LYnchburg to New Or
leans. which granted upon terms hereinafter set
forth and sncc tho 18th Of july 1873, has operated
sleeping the two roads named and the Pull
man Palncc Car Company agreed to pay the Pullman
Southern Car Company for the certain portion
OF the earnings oil each run the two roads;
that say, they would pay pro rata OF the
Tugs OF each car operated on the two lines OF road ana
Company with statement OF the earnings Of eacn car
They navo refused 10 pay the amounts and the Pull
man Palace Car Company IL indebted 70
them at least $4,000 they further aIlege
president of both companies, tailed to perform his
duties az President Of the Pullman southern Car Com
pany, BY not having placed to their credit the
defendants, ". Y. Hite and others, neglected their
duties by not seeing that the contract was enforced
Tho plaintiffs urtner state That IN 1873 the defend
ant, George NJ. Pullman, President OF the Pullman
Southern Car Company, illegally and without author
ity constituted and appointed the Pullman Palace
Cur Company custodians OF the funds Of the South
ern Car Company, aud that since that time the fuuds
of the Southern Car Company been regularly paid
It distributed, and that as such 1t has held
and used large sums of money belonging 70 The
Southern Car Company, all OF which Is due.
Plaintiff also stated that the 1lth OF March, 1871
the Pullman Southern Car Company aud tho Pullman
Palace Car Company entered into written agreement
whereby the Palace Car Company granted the South
ern Car Company tho right TO use certain valuable
pascn. m.s .nsn o. "
consideration OF tho right 80 granted the Southern
Car Company agreed 10 pay To the Palace Car Company
seven and = halt per cent OF the capital stock and
seven and a half per cent Of any additional stock
The plaintiffs say that from tho organization OF SAID
Pullman Southern Car Company until October TO- 1872
the amount OF tho capilal stock of tho company
actually subscribed for 800 shares OF the face
value OF 500 each and that by the agree nent the
Palace Car Company was entitled To receive u number
OF shares OF tho Southern Car Company equal TO sovon
and naf per cent OF g. 500 shares, or 4s71s shures,
aud no more Plaintiffs say that IN October, 1872,
there wcro issued To the Palace Car Company 750
shares OF capital stock OF tho Southern Car Com
pany, Of Zo21s Of the number 10 which II
wus entitled They say that the additional shares
were without consideration and that the Palace
Car Company claiming to be entitled TO the 100 shares
of stock, dd IN October 1872 demand aud receive OF
the Southern Car Company about ~, 500 when II
only entitled TO $6,976 IL; SO that there was paid 10
them 81 S23 80 10 which they were not entitled
The plaintiffs further aege that on the 10Th o Octo
ber 1872 tho capital stock Of the Southern Car Com
paDy from 1000 600 10 ST. 500 900, and
before the same paid up the Palace Car Company
entitled 10 II tney received Of the Southern Car
Compap large sums of money the additional STOCK
atnouu uuiing to $I3 250. PlantIs also the
r,ace Car Company claims TO be the creditor OF the
Southern Car Company IN a sum exceeding $3.50, O,OOO
BY reason OF labor dono and material furnished
building, repairing, &c. sleeping cars, nnd Tor cars
SOLD delivered 10 the Southern Cur Company which
this company claims excessive unjust irau lulent
clam, and that upon final and just set
tIemcnt Will be found that thcro Is balance due the
Southern Car Company.
plaintiffs further that In the latter part OF 1879
tho Pullman Car Company frauduently procured the
Southern Car Company 10 deliver 500 shares OF tho
capital STOCK whcn were issued without considera-
ton, were issued ~ the instance Of George n.
Pullman, and issued to the Palace Car Company
and transferred Horace Porter Vice President OF
the Palace Car Company, and director Of The South
ern Car Company, and, tor the purpose Of conccalng
the fraudulent Issue, the bonds aitcrward trans
ferred " the Farmers Loan and Trust Company Of
New York trustees, and are held by II as
trustee Horace Portor The plaintiffs charge that the
shares were without one cent being paid upon
tho and that since May 1873 there has been PAID 10
Porter Slg OOO by way oil dividends declared the
600 shares of stock winch hs illegally acquired
The plaintiffs pray
$4,000.