The New York herald., 1877-10-20
HANNIBAL AND ST. 10.

JAY oouLD's EFFORT TO GET CONTROL OF THE
RoAp-H1s LOAN TO BE nEPAIp-MEETISa
OF THE STOCKHOLDERS LAST NIGHT.
The Hannibal and ST. Joseph Railroad became Anan-
cay the latter part OF last August owing
TO their inability to meet tho accrung interest which
would fall due tho LIST OF last September. Tho d.
rcctors, finding themselves unable To grapple with
the emergency instructed Mr.. Richardson the Pres.
oent Of the road negotiate loan the best terms
possible to meet this temporary requirement. Tho
President accordingly made strenuous efforts among
well known brokers and bankers tho dcs,rod
amount on good collateral security, but inasmuch
the company was engaged IN several serious litiga
tons growing out of business transactions
with the ormer management OF tho road tho
President found IT worry difficult mattor
TO accomplish his purpose. The sum required was
large amounting TO $3.50 900; and parties who were
willing 10 bo Accommodating demanded almost
usurious rate OF interest. At last Mr.. Jay Gould
came forward and offered to the money seven
per interest, which offer was promptly accepted
by Mr.. Richardson, Mr.. Gould, when the agreement
was mutually accepted, advanced 100000. tho
remaining 100000 to be PAID ut tho OK
piration OF three months il certain stipu-
lations agreed TO in the bond complied with.
AS these s,ipuations were, however. violated, Mr..
Gould presses Tor settlement and demands that tho
company refund his $i6U.000, with interest 1t ap-
pears that tire Board Of Directors when they learned
of tho transaction with Mr. Gould, repudiated the
agreement and took Immediate measures to cancel
the debt. For this purposc meeting OF committee
OF the stockholders was hold Id ths city yesterday
when a certain amount Of the indebtedness claimed
by Mr.. Could subscribed aud the remaining por.
tion Il is said will DO forthcoming in lew days.
|. MR.. FRANK WORKS STATEMENT ..
| Mr. Frank Work, Mr.. Goud's banker and broker,
/ through whom tho money paid to Mr. Richardson
behalf OF the Hannibal and st. Joseph Railroad,
gave the following explanation OF the transaction to
| HERALD reporter yesterday
.I SIMPLY acted as Mr.. Goud's agent Hc was kind
enough to loan tho company s1eoooo to Keep them
from dcfaulting on their interest, which fell
due on tho LIST OF September. / paid the
money over, aud received in return certain
collateral securities from Mr. Richardson. consisting
OF q large nominal amount OF securities, but VIII ict
we're not negotiable as collateral gave him ny
check for the amount mentioned, $l6o000, and now
hold securities these coaterals on the loan, which
will be willing 10 return on payment OF the To-
gethcr with the seven per cent interest" "
"IIave the company shown my disposition to re-
deem their col ateraI?'
"I can't say for a certainty. II Is PLAIN business
Transaction Mr. Gould does not desire 10 take them
| al a disadvantage. They failed to comply with then
agreement and Mr. Gould simply says, Return me my
money, gentlemen, and here are your coa,eras
That is fair enough isit not2 For doing them th,
srryice service which fow others would DO willing u
grant, Mr.. Gould is now being roundly abused"
''ln what particular have the company not pcr
4 formed their part OF the agfoementY'
.'Wcll, they gave their note Tor ninety days FOL
S250.000 THIS s now due; besides, ihcy haven't ad
vanc.d all the securities tncy agreed to- ana this u
the Sr Gould alleges for his desiring to with
draw from having any iurtaer transaction with the
company "
Mr. Albert A. Drake, secretary OF the stockholders
meeting which took place last Wednesday. stated The
grievances oil the company and The history Of thcii
relations with JAY G0ud. 'Under the old regime,
SAID Mr Drake, '1hc road subject 10 all sorts o
pccuation proof oi which less Than ninety -one
lawsuits. involving $25s, 900, have been left as leg
aUy to The present man cement These claims have
been settled by the OF twelve per cent on the
aggregate amount Moro cases of similar nature are
pending, but Mr. Richardson, aided by legal SKILL ~
Ighting these sits ~ the coYSs."
now THE coMrS b STAND.
"Do you consider the company solvent II their
present dIhcutIcs werc once tdcd oyerY" asked the
reporter
..Pcrtcctly solvent Tho company have 81, 700 600
In land notes cash assets III The hands OF Mr.
Iathrop, their land agent IN Missouri less the
$780, 600 the company retain IN this CITY, tho principal
OF winch Us being reduced and converted into cash
montnIy 10 the company's bcncAt at the rate OF
as 900 per month. There is due about $40 900 10
for what they call back taxes, but this claim
is csted aud is IN litigation. In December next
the taxes for the year 1875 will become due, and
will amount 10 about $42 0OO. Last septcmbers In