Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1886-07-24
lNJoINED.
TIE L.aN.RsR. CO. FILES BILL IN
THE FEpERAL COURT.
That in Several Ways Relates to the !. A.
&T,

Dickens Bleak House, is in chancery,
and the general is that it will be the
Dickens to get it out.
This tangled state Of affairs came
about by this means: The l.. & N. rail-
road has filed bill in the United
States Circuit Court at Nashville, sit
ting in equity, asking for an injunction
and making several prayers, all relat-
ing to the |. A. & r., which we shall
attempt to state in the course OF this
article.
The bill begins by showing that the
L. & N. is Kentucky corporation, and,
therefore, the Federal court has juris-
diction in the matter.
II then proceeds to show that the !.
A. & T. railroad company is the result
Of the consolidation of three railroad
Companies vs.. the Indiana, Alabama &
Texas r. r. Co., chartered in Alabama;
the Mobile, GAINESVILLE & Evansville r.
R. Co., chartered in Tennessee, and
the Princeton & Ohio River R. r. Co.,
chartered in Kentucky. The bill then
goes on to state:
Complainants would further show
heretofore the SAID three corporations
above named were duly consolidated
under the laws OF Alabama, Tennessee
aud Kentucky under the corporate
name OF the Indiana, Alabama & Texas
Railroad Company, and by virtue OF the
laws under which said consolidation
took place, compliments are advised
and insist that the said subscriptions to
the capital stock of said original corpo-
rations' became and were due and paya-
BILE to the said consolidated company.
Under the articles of consolidation
the capital stock of the consolidated
company was fixed at 100000, di-
vided into 5000 shares of 500 each,
1t will be seen that the said subscrip-
ton to the capital stock of said original
companies aggregated 1927, $50, OF
which the said E. g. Gordon subscribed
for 81, 1900 and the said Walter S,
Gordon subscribed for 81, 074 ,000 The
subscriptions OF the said e. G. and Wal
ter s. Gordon aggregating 81, l47 GOO
out OF the total subscribed capital stock
of the consolidated company, thus Civ
ing them an Overwhelming majority in
any and all stockholders meeting if al
lowed to vote upon their said subscrip-
tons.
Compliments are informed and be-
lieve, and so charge that neither said
E. G. Gordon nor Walter S. Gordon
have ever paid anything upon their
said subscriptions, though they claim tc
own and control almost the entire CAPT.
tai stock of the said consolidated com.
pany.
Complainants have also been inform
ed that the said e. G. Gordon claims
that the capital stock of the consolidated
company has in some way been re-
duced so that it now amounts to only
about $3.50, 900, but compliments are
advised and insist that the consolidated
company have no power under the law
to reduce their capital stock, and that
any attempt which may have been
made to do so was Intellectual and void
at least as against the creditors and the
stockholders OF said consolidated COM
pany.
The bill shows further that 619 o.
these bonds of the denomination Of
$500 each were bought by the L. & N
road from the president of the l. A. &
T. company.
1t then continues
5. Compliments would further show
that the said e. q. Gordon and Walter
S. Gordon are brothers, and claim to
own and control nearly the entire stock
OF said consolidated Indiana, Alabama
& Texas Railroad Company. They have
at all times elected directors friendly to
them and subservient to their views,
and have caused themselves to be presi-
dent and vice president OF said compa.
ny respectfully the said E. q. Gordon
being president and the SAID Walter s.
Gordon vice president.
The affairs of said corporation have
been managed almost exclusively by the
SAID E. G. Gordon. The vice president
and other directors have simply APP
proved or consented to what he has
done.
1t then proceeds to criticise a repor
of the expenditures &c, in building the
road, which Major Gordon made at {
public meeting in Clarksville, showing
that id the cost of the road he included
$4,000 solely for himself and. The con
tract between the I. A. & T. railroad
and the bond subscribers and the mort
gage given to secure che bonds are both
set out in full, and this article empha
sized:
Said INDIANA, Alabama & Texas
Railroad Company in said mortgage
"agrees that it will take care of the
property franchises thereby conveyed
and preserve the same in good order
and repair, and at is own cost will dc
all acts necessary to be done to keeI
valid the lien theby created"
1t is shown that not more than $3.50
900 par value Of bonds were to be ISSUED
to build the road between Clarksvill,
and Princeton. That $20O,0OO of these
were to remain in the hands Of the