The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1885-06-19
RAILROAD NEWS.

The Coming Texas & St. Louis Sale.
WACO, June 1S.-[Special. lit is
about a month ago that Colonel j. w.
Parramore, president of the Texas x
st. Louis Railroad, csme to Waco, &C.
companied by Messrs. r. G. Kerens
and j. A. Mcclure, bond holders OF
said road. They were here several
days, and their work was TO prepare a
bill In equity, in the nature OF an in
tervention in the suit of the Central
Trust Company, of New York, against
the Texas IL st. Louis Railroad in
Texas lin which decree OF foreclos-
urs had already been entered), alleging,
in short, that r. G. Kerens was first
mortgage bonholder TO the amount of
$4,000 in the road, besides owning
other securities; that the suit of the
Central Trust Company was fraudu-
lent and collusive, based upon de-
fault In payment of interest due June
l, 1888, which default has never oc.
cured; that the suit was scheme on
the part of Kuhn, Loeb ~ Co., OF New
York, TO wreck the road and buy
It for song; that in calculation OF
such purpose they had caused
a large amount of receivers GER
tificates to be issued as first lien up
on the road, which certificates they
had bought up at a heavy discount
and were now prepared TO use as cash
under the decree in buying the road ;
and praying the court for an order
suspending the sale on August 4tb,
PROVING, decreeing the first general
mortgage bonds TO be q nullity and
taxing M the amount OF the cortlh-
Gates and ali the costs of the suit to
the Central Trust Company. This APP
plicaiion was set for hearing before
United States Circuit Judge Pardee
at New Orleans, June 10th, and
came up on the 10th. There was a
strong array of legal talent on each
side, for big interests were involved.
II. q. Kelens was represented by
Messrs. Chandler, of Washington city,
and Mcclure, Of Little Rock, assisted
by Green, OF New York, and Ogden, OF
San Antonio. The Central Trust Com
pany was represented by Messrs.
George Clark, of Waco, and w. 5.
Herndon, of Tyler. After argument
Judge Pardee refused to suspend the
sale or to make any other order in the
case, save TO permit the papers TO be
filed in the United States Circuit Court
az w hCO anu thho tuoil luz ulh Suhs o'
This permission, so Judge Clark (who
arrived from New Orleans this morn
ing) says, does not amount to any
thing at all-the sale will take place
as ordered on August 4, at Tyler,
Texas. The result is in tho nature OF
a defeat for what Is known as the
Paramore element In the road. Judge
Pardee told the intervenors that they
might possibly get stay of saleif they
would put up half million dollars,
cool cash, enough 10 run the road for
year, with an additional amount
sufficient 10 liquidate tho receivers de-
bontures as they are presented for pay
ment. II IL limited that Jay Gould and
friends would like TO have the road. IL
is limited, too, that Kuhn, Loeb Il Go.
have the longest pole and will knock
tho porsimmons. Judge Clark was
asked about these matters, but was as
uuoommunioatve as an oyster. He
said he only knew that Colonel Hern-
don and himself had gone TO New Or
leans 10 protect the interests OF the
Central Trust Company and had done
so.
The Southern Pacific EconomlElng
SAN FRANCIsco. Juno is,-The
Southern Pacific Railway Company
has found IL necessary 10 further re-
duce its operating expenses, IL IL
stated that at the beginning OF the pres
ent year $500 had been asked TO no.
sign, The company has now decided
70 abolish several departments and to
dispense with a number of prominent
officials, who have been connected
with tho road since Its first days.
Among those who will resign July LIST
are w. X. Porter, general auditors
Edwin NJ. Railton, master OF Transport
tation; o. O. Wheeler, general baggage
agent; William Hood, chief engineer