New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-05-30
THE COURTS.
CONDITION OF THE WABASH RAILROAD
EXAMINATIUN or PR SIDENG ROOSEVELT Am
-.

EXAMINATION OF PR SIDENG ROOSEVELT Am
OTHERS ~ THE TY,EN sUI.
The suit of Daniel G. Tyscn, ir., of 5; item
Island against the Wabash Railway Company Tor IN In
junction restraining it from paying interest ohc first
mortgage bonds due May 1873. and for the appoint
ment OF a receiver, came before United States
Commissioner Osborn yesterday, on combustion
for the examination Of the company's officers
The suit was begun Ia state court IN Illinois
and then transferred 10 the United states Court
j. A. Roosevelt president Of the company, John w. Eli,
and George l. scney were examined by counsel for
Mr. 1ysen Nj. Roosevelt was asked to identify clrsu.
lars issued with approval by the company on Noye.
Der 3D. 1876, January 81 1877 July L. 1877 and on
March % 1873. In regard to many Of the statement,
IN these circulars he was closely examined.
Mr.. Roosevelt explained at some length the fuLdiu,
scheme and said uat after tie scheme was adopted no
coupons sold except upon s conditions Tie mos
searching inquiries were made, concerning Tie las, en-.
cular. Mr.. Ashley the counsel asked Why The SJGOOO
paId 10 the Equipment Company not incllded I'm b
table that ISSUED on the sant day. Mr. 0sry,It
said 1t WAS not "hXcdcharfc" Tac same reason was
assigned for not including T@OOOOO, interest on 20 per
'' VIM n, flor doe" tlr 81 s. 900 81 ~ s,r - 49,,
statement really rcprcscntr asked Mr. Ashley " ''0
"Iet me c4 plln," answered ,lr Roosevelt "as II i.
evident you do not uudrIstand. This statement
been the result OF the operations Of the com.
pany for .the year. suppo,ng Tho funding scheme
10 have been finished ANA 30 other excuses to have
been paid If all the fixed charge, lad been pad. the
statement showed that IN ihe operation OF the road
could have been applied 10 otter expense II was
actual surplus IL the hands oi ne company can't
,ay what was TIE actual suiPu5 Tie books, which arc
al Toledo. VIII show that
Mr. Roosevelt testified that he authorized TIE pub.
Hclton of the compauy's statement which appeared
Mav II. showing the condition Of the funding
scheme. some coupons, he san, hid since been
funded uIon the second mortgage bonds IN
corlance WIth the circular Of July, $50 the per-Ons
funding them taking the chances o. the payment un4er
Inc scheme 1t present time. the company VIA
fH-ng to pay coupons except IN accordance with the
fuuuing scheme.
Jpln " I.IlS said that he director ~ The W.
bash Railway Company until the las' election. lie was
one og the purchasers trustee al TIE foreclosure
OF The gold mortgage. The old company was
soil 10 the new company Tor 1lO'.vNO n
the capiial stock OF the new company,
and III new company assumed what was kno"u as the
"bauk IntcDlrducss." which amounted 10 moro than
: ODOOOO. The "Seucy NOR gage was given ~
secure tho dcbt Of the old company. FOR tht capital
stock ui Tie new company tucy received "htu iIt sold
If back 10 cents tn- dollar. Mr. EN saId iIa' h'
went INTO the company for three reasons: To assist
tru at their request in the ieuI giultt"h; 10 see 10
the security old company III rtIin- uul the stock,
ana aI.o To- col th' ailments on iut STOCK.
George l. ScneY, president OF The metropolitan Ma
tluua Bank said that the bank was au agent Tor ths
conpany M carrying ont the iuutns scheme. Tie Was
trustee ui the ~cucy mortgage. lie knew ~ he pay
ucnt OF interest the mortgage, anu ~ ~ IcI c'ui oi
the principal. paid as he understood l' rom surplus
fund, 45U,DOJ IoI The payment ~ tur l.tl' - Was D-
posted uu May !. 10 tr, ere at 81 Nj En'-nN a.
Iuc Examination viii b. continued tD-HpttO" morn
DBL at 10 O'Clock.