, 1879-07-15
t,0catc. Of indebtedness, WAS fully pad up 10

HEllG4s UGUIE4 LtNt IIlE kuIu j}CNFeE
Railway Company is III dc!ault with respect TO
amy interest Instuta1'cnt for mora thnn Six
months, "A in enld hlll alleged
This defendant further answering saws tint
the sald Denver d lilo Grandc Railvay Com
due on the said 1st day Of May, 1877, TIC 1st
day OF November, 1877, nInl tic lat day OF
May 1873, Il has not been patd, unless T. f1ns
trnudalcnlly disposctl of the proceeds Of the
that Il It hos 80 frautlulcntiy sold md disposed
Of the proceeds Of said bonds, sucIl snlt ind
fraudulent disposition OF tho proceeds havu
bcnti nntlc with tho assent OF the Jmpiatnnnt
a,,d nf tl'c holders Of 'a1ge majority Of the
This lelendan. further answering says That It
wns tu'y created and organized a corporation nn-
der lilo laws u knnsas, md 10 now transaEtfnH
b,lsness by and under It's corporate name q the
AtchIso,,, Topcka It Santu Fu Rhilroad Com
pnnys with suel, Iowcrs mud authnrftles an weec
by the laws III Kansas, conferred uDUn AMI
granted to ths defendant, nid. this defendant
tiles herewith uml makes part hcrcof copy OF
On tllts defendant.
This dcfcndnl,t denies that It has no power or
authority Under tho laws OF KnhBns or or Colo
rado to acQulrt, possess, operhtc, use, nnln-
fniil, and enjoy railway lttcs hh Dtler property
ID lc stnle OF Colorado, Us in said bill alleged.
Ihts defendant further answering says TINT 1t
Inns the right nudcr the laws Of Colorado to ur
qutrc, conatrnet, maintain, and opcrnto lines Of
!MuHai III eau Stnlct n11u Hns TIE rient 70 cHasGe
tolls for the TRANSFORMATION Of persons md
property thereon In rs full and ample manneras
Mny corporation crcntetl by md organized undrr
lawk 0f tile State OF Colorado.
This defendant further answering says that II
Is entitled 10 possession of all the property
mentioned In said deed OF trnst, nnti Is the own.
er OF such portions Of said property as arc
lcroinuitcr specified; md that tlo allegations In
anid con,plnlnnnts safd bill Of complaint TINT
this lcicndnnt has no right, title, clan, OF de-
tnutlu To Enln DtOnrfkN. tn thN rtlxtEkAnn
thereof, nro untrue.
The dcfcndnut nduts that the agreements
hereinafter mentioned bt which l1lla defendant
asaai,a ts interest," IN . sad property wcre made
iobeforo mo.t!oncd, but this defendant denies
that the said Denvcr e. Rio Grantlo Railway
Company was iu default when said agreements
were executed. 'r''" '''-'
This defendant nlnits Tint suit was hereto
fore instituted by she complainant In this court
against the satl Denver & Rio Nrat,do Railway
Company for foreclosure nt said deeds Of trust,
vet this defendant snys that tlte said plain
agreements hereinafter mentioned wcra exc
cnted, and ~ thu time ol tho payment to him
Of $IS}, . Is, as hereinafter mentioned, fraud
ulentty concealed said suit from this defendant
for tho purnoee of inducing this defendant 10
enter Into said .agree,nents, and to mako said
paymcht. -. .,
And this defendant further answering snys
tint at the ttrne Of the execution uf the agree
incnts hereinafter mentioned, and at the time
of tho payment Of the $163, 3,eN3.i5, rs herein
any defauit On tl.n port ot tho said Denver &
Rio Gra,nac Railway Company III the payment
Of It's interest or any. part thereof, md tlis do
fcnda,lt sars thai II my default existed the
icntlans by tho agent ind solicitor Of complain
ant, for the 'purposs Of inducing this defendant
to enter int1 sad agreements hereinafter mem
toned, and 70 make sa0l par1ucnt,
And this defendant denies that tllcro Is my
suci, provision. " tie Constitution or laws df
the State OF Colorado, or policy Of said State,
rs Is IN said bill alleged.
This defendant admits TINT a fraudulent pro-
cccditiE IN tho nature Of quo warranto was In
stttutcA by the Acknowledgement OF tho SLu o
of Colorado, for a,t' OIL behalf of tho pcoplu OF
said Stntc, lii the District Court Of the stata Of
Colorado in und Tor tic County OF Et Pnso,
requiring this dcfcudnnt to show by what wnr-
rntt and authority It was exercising i.s curpo-
rato franchises to. operate Il raIlrouh In
said statc, nAd to charge tolls for trnnsporta-
ton 0f pcraOus or property thcrcnn, antl ts,At
this defendant duty appeared and submitted TO
the Jurisdiction ot tic Court, md dcsnurred ~
It by the ea1d Attorney General uf tho State Of
Colorado. at1d tint tl,Crc,ipon such proceedings
were lind tl,ut on or nbont the - uny OF
April, 1STN, Judgment OF custer was entered
thereon agalnst this t1cieiidnut.
Dat this defendant says HAT The said proceed
til, was fraud II, its Inception, the Judgment
therein for The complainant was fraud, And, as
1t Is informed RMi b1liuyes, corruptly procured,
nnd that snll Judgment has been bupcrs Gdtd BY
Al, order OF the Supreme Court of said sta1e,
md tnt sald Supreme Court has practically de-
eled tllat there was no warrant m tho part Of
thu Attorncy-l}enernl Of eaid stato fnt fling
snfl Information III the n1anllcr n,nl form ia
which 1t was filed, nor OIL the part OF tho Judge
for the Judgment rendered III sa!d cn,lse, und
Tint the whole proceeding was a fraudulent
abuse Of t,ir powers Of the Court for fhc pur-
pose Of harassng anl annoying this defendant.
THIS defendant further answering snya il,at it
denies that the said Denver & Ito Grai,dr Rn,l-
way was, on the 18th aay Of December, 1873, In
thorough working urslcr and condition, aNt! a.]H-
qnaiely eqnioped with motive power, rolling
stock machtpcry, tools, materials, and supplies,
mud also With sidc.tnicks, dcpot,. and other
structures us IL IT., said bill alleged.
This defendant admits that It claims the Dos
session OF said railway ind property Under the
contracts here!naiter mentioned. and + nvcrs
Company had full power uul authority under
tho Constitution mud tnws OF the Stats Of Coln-
RADIO to make said agreements, mil this dcfcntl-
mt had full power and authority to nuke the
the property described sticrcIn.
THIS defendant further answering says that 1t
l,ad full Hlld atnplo authority under thc laws
of the STATE Of Colorado aud lows Of tho
United StAtcs to acquire, maintain, and
'opcEato tho railroads Il. tl,e said agree
mcuts mentioned, md their app1rte-
naMccs and apponduRes; and for tt,ut pur-
pose had authnrltr.to make mud enter Into Nil
proper contrauls 9l1 agreements, and that none
VI tlln agreements hereinafter mentioned werc
ultra vlreH 1liG powor OF this defendant or In yIo-
lation nj ;ho Constitution Or laws OF the Stuso at
Colorado orr 'the policy thereof,
This defendant lonfca thAt when tho agree.
mcnts hereinafter mentioned wsre made tllut
the Buld Denver Il Rio Gralu1u Railway Company
VIVA nho,lt recovering from its financial clniar-
russmeIts; that its business nnd earnings wuro
steadily Increasing, and ll,At It's net cnrnluss
wcrc sufficient to pay The current intcrest upon
Its ht,ttls Us is III snt'l hill alleged,
1'l.is letenualt denies 1hat tlle anid Dcnyer Il
1lto t;ranto Railway Company has ainco The III h
day Ut December, 157a, allowed 0r pur,tttcd tho
carnlngs Of It's railway ltncs to bc ttyaytud, and
not to bo applied for tho purposes contemplated
by tho said dcet1a Of trust, or thnt the complain
ant s1ll hts cestnis quo trust lluye becn damaged
or injured by sall n!.reanents; but, On TIC cut.
trary thereof, tha defendant nays that The sniu
complainant asscntcd TO all ol said agrccmsnts,
at,l BY Ills representatives ul,l ugents induced
tha (lGfuntAut tu enter into allu execute thu
same. as hereinafter mentioned.
1hls defendant denios that 1t las with tho
knowledge and consent Of tho said Denver Il
Rio GFadls Hallway Company, or otherwise,
Misappropr!ates any, Of tho earnings Of the said