St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-03-27
HERE'S RICHNESS.
A New Move in the Vanderbilt
Quarrel With FL. H. POr-
ter.
Porter, DOws and Flower Accused of
Fraudulent Issue Of st. Paul &
Omaha Stock.
The Total Amount Stated at Nearly Sever
Thousand Shares Of Preferred.
Porter Replies Sturdily and Defiantly, De-
claring the Issue Proper and Fully
Authorized.
Especial Telegram to the Globe. |

Especial Telegram to the Globe.
New YORK, March 26.-The latest devel-
opments in the contest between w. H. Van
derbilt and the mana ger of the Chicago,
Rock Island u Pacific railway are of an epis-
talary nature, as follows: On March % Mr..
Vanderbilt and Chauncey Depew sent let
ter to Directors D. Dows, R. p. Flower and
II. H. Porter of the Rock Island in which
they say, ''The attention of the executive of
the Chic ago, ST. Paul, Minneapolis d Omaha
Railway company has recently
been called to the issue
of certain preferred shares of
capital stock of that company in September,
1873. 1t seems that at about that time there
were issued 10 David Dows $50 shares; to R.
P. Flower SO shares; to Mrs. Z. A. Schley
$40 shares ;lto 2. L. Cable $40 shares; to A.
B. Bayless $40 shares, and to H. H. Porter
4, 422 shares. The company seems to have
received no consideration for the issue
of any OF these shares or for $50 more
shares that were issued shortly after to the
same persons in the same proportion. Nor
does there seem to have been any authority
for the issue OF any of these shares. The
SHiCdSO, ~. L dui, InluucdpOuS " Oludud
Railway company is advised that if this be
true such of the directors of that company as
shared in or assented to the distribution of
this stock have incurred liza
bility by reason thereof. We
have been appointed a committee
to bring this claim to your attention in be-
half of the Chicago st, Paul, Minneapolis e.
Omaha Railroad company and would be glad
to hear from you in relation thereto"
Mr.. Porter, who was president of the
Omaha company before it was sold to the
Vanderbilts, has replied as follows:
CHICAGO, March 24.-Gentlemen Yours
of the 22d last, came to hand this
morning. 1 am able to answer promptly
because it was expected. During the
past ten weeks it has been inimated to me
from several quarters that such a letter would
be forwarded prior to the commencement of
assuit in which David Dows, R. P. Flower
and myself would be charged with outrageous
frauds in the management of corporate
trusts, and that the letter would be written
and suit commenced about the time of
the closing of the books of the Chicago
Rock Island and Pacific railway company for
the annual election Of the company in June,
at which election w. II. Vanderbilt proposes,
| if the stockholders of the company will per-
NIT, to place in its board of directors and ex-
ecutive committee Albert Keep, president
and Warren Hughitt, vice president and
general manager Of the Chicago
and Northwestern railway company, both
| of whom l am told are members
of the committee by whom
you have been appointed to bring this claim
to my attention. When satisfied that any
commission is acting in good faith in behalf of
the Chicago st. Paul, Minneapolis & Omaha
Railway company desires an explanation Of
any important act Of mine, occurring dur
ing the several years ardorous service
gave it, service which commenced VIII en- it
had less than two hundred miles of railway
and ended after its mileage had
| been extended over twelve hundred
| an explanation will be cheezfully given.
shall not be guilty, however, of the folly of
making to a committee composed of the
officers of the Chicago 81 Northwestern Rail
way company and the employees of Vim. H.
Vanderbilt any explanation, with view of
| convincing either the committee or Mr..
Vanderbilt that he should not commence a
suit which he believes will assist in subordi-
mating the Rock Island to the Northwestern
and other companies which he controls.
should say, however, in justice to myself
and the several persons named in your letter,
that it will appear on the trial of the suit you
propose to commence, if you ever
permit it to come to trial,
that the shares referred to were issued for a
consideration upon due authority and with
approval, at different times expressed, of all
the stockholders of the company. Yours
truly, II. H. PORTER.