New-York tribune., 1880-01-06
THE TERRE HAUTE SUIT.
A STATEMENT BY CHARLES BUTLER.


HISTORY OF TIE CONNECTION OF HIMSELF AND
SAMUEL J. TILDEN WITH THE RAILRoAD-A SET
ELEMENT LONG AGO WITH THE BONDHoLDERs
WHY HE SETTLED WITH TIE COMPANY.
A reporter OF The TRIBUNE caleds upon
Charles Butler at his residence No. 75 PArkave last
evening and asked il he had any comments TO make in
regard 20 the statements published IN THE TRIBUNE
Sunday concerning the settlement OF the suit
of the St. LOUIS, Alton and Terre Haute Raii-
road Company against Samuel J. Tiden, Charles
Butler Russell Sage and Robert Bayard. Mr. Butler
said the statement eened to him be made in far
spirit but incorrect in particulars, and being
entirely from the point OF view OF the plaintiffs did not
convey Just impression Of the merits OF the case.
Three sentences involve misrepresentation" MT But
Ter said. The first statement Is that the stockholders
decided buy the road in, and appointed the four
persons named above to do for them In fact was
the first and second mortgage bOndhoders who decided
to buy it in ana appointed the four persons above
named 20 act for them.
The second which would crIticise contains
the there several claims against the
old company DC settled, and the company placed
IN the hands the Purchasing Committee
large amount OF its funds for this purpose.
Now the bonds OF the company we're
not placed IN the hands Of the Purchasing
Committee, but were delivered absolutely TO the Pur-
chasing Committee the consideration Tor the convey
OF the property by them to the company, and
adjusted by committee not several, but sew
era thousand IN number.
Now, 10 the third place. 10 the statement that
after the settlement Of these claims large amount
of securities retained by the committee, by Of
change instead OF being given back TO the new COM
pany. As this statement implies that the new com
pany had claim upon them which Ia not the fact,
will give brief history OF the
The Alton, Terre Haue and Louis Railroad Com
paDy was involved in bankruptcy IN 1851 when Dir
Tldens services for the bondholders first began. Sub
sequenty they appointed committee TO act in their be-
half The first step taken 10 obtain surrender Of
the the hands OF the trustees OF the second
mortgage bondholders, Azariah c. Flagg and
John wilkinson, then living 10 effect this went TO
Indiana In December 1859. aud obtained from the
Board Of Directors then IN possession OF the road,
surrender OF II 10 these trustees, Dy Thoin u was
10 finally sold under foreclosure OF the
Tst morgaEe' IN tne hinsr % H S 11o@, a. and AOo: nSe
members Purchasing Committee. In the interval
between the surrender OF the road December 1859,
and its final sale 1862, the bondholders the first
and second MORTGAGES appointed
necessary their judgment to protect their interests.
and 10 secure the best results. To give a1
idea Of the ruined condition OF the property
AZ that time, the first lnorlgag bonds were
selling at from 40 to 80 cents on the dollar,
with So veral unpaid coupons the second mortgage
ner cent honds from 10 to 20 cents the dollar with
several years unpaid coupons and the third and fourth
| mortgage bonds and common STOCK were worthless 10
resens FMS property the work Of the Purchasing
Committee which acted under the agreements executed
by bondholders IN 1901 ana derived All It's powers
/ from them. ,., -. Al - -,
| forecO Osure Of tho first mortgage, the purchase OF
tho road by the committee aud the creation OF new
out oi the debris o tie Old The sale OF the
Old road b. the purchasing Commlttee 10 me new cox
porato consideration TO be paid in the bonds and
stocks Of the new corporation woul0 constitute Iuna
I'm the lands oi the Purchasing committee whlch wOuiu
enable them TO settle with the oondholders and credit
- In estinrlting the amount OF consideration which
shoud paid by the new corporation Tor the property
ne committee was fostIne, " ~ " ~, 90 M -, b
the Oi indebtedness OF the oid company 10 p9
proviSd FOR and due allowance for compensation and
| expenses incident TO the business.
After the property had been acquired at the fore
closure sale. the new corporation was created ana Or
snnizr i'm Jun- 1862 The title 10 the property by tue
urchase was in fee In the Purchasing Commit
tee Holding the property thus, the committee agreed
lion 70 he paid In and stocks which bonds and
stocks tho corporation ordered TO DO issued and do
verod 10 tae Purchasing Committee on receiving from
II deed Of tho property. All tais Is matter OF public
| record. -,.,. A. ..,.,. .
Committee acted strictly under and within ine spirit
and The etteof the agreements by which h was creasea
were only those bondhoders and creditors OF the od
who Tere RSe&. & to the ssea aha r is
Ali those to their satisfaction, and received
40 large business tie complications embarrsss-
ments we're extraordinary ana mnhfarIous' requiring
great in the adjustment In detail not OF several
cnfus. stated III IHE TRIBUNE. out OF several thou-
sand ...., ,,.o,.hor, IN ,ho.o a.
| lustmen,s In the most fair aud liberal spirit
| and aIfhough by tie terms or the agreement,
| bondho lers and creditors who failed 10 become
parties to previous TO the SAFE OF the road were cut
1G this limitation disregarded by the committee.
which allowed parties IT, como In for many years after.
and never refused entertain reasonable aplca-
f,n Many questionable claims were made against the
| Old company which the committee had 10 adJudlcate
| aud settle on an equitable basis
"n the final adjustment OF the affairs OF the old com
| psuy running through many years and requiring q
great deal or thought and attention, the committee
fonnd IL had surplus OF securities result OF the
personal labors and exertions OF It's members which IL
he s an indemnity AGAINST any furth her os slbe cims,
ami also acompeusstoD sonable In ITSELF FOR me J.
torious aud faithful services. After lapse OF If
| teen wears the present company set up claim
| that 10 had a right 10 call the Purchasing
Committee to an account. or course such claim. IL
well founded would carry with IL The right To hold the
Purchasing COMMITTEES t0 an account OF MI transactions
and settlements OF the affairs of the old company To
enforce ths claim they instituted tho snt In question,
the aDsV when was that the Purchasing Commit
| tee WAS In no wise responsible TO them.
Tho committee has always insisted that it was ac-
their cestuy trusts, VIE, the bond
holders Of old company, Tor whom acted ana with
whom II mad settled. No Of these mas ever CON-
planed. On tie contrary the committee has tue salis
faction OF lug the faithful discharge or TINS
duty t has them greater benefits than could
have been expected -, MI, l.,
conciusion I'm opposition to the advice OF counsel and
TO nv own feelings OF right and Justice, nave peen n-
uenced by considerations OF health ana age and by the
desire for peace and quiet and to be relieved from the
worry of what might be long and tedious nt1ghtlon
e is too short an peace too valuable 10 be eacrlncCd
| or 10 be weighed IN the scale against money
|
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