New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-23
RAILROAD INTERESTS.
THE NEW SUIT AGAINST GOULD AND SAGE.
A LONG SERIES OF LITIGATIoNs GROWING OUT oF
THE REORGANIZATION OF WESTERN ROAD.

THE NEW SUIT AGAINST GOULD AND SAGE.
LONG SERIES OF IIrrGATIoNs GROWING OUT OF
THE REoRGANIzATIoN OF A WESTERN ROAD.
The suit begun in the Supreme Court, OF John
S. Stanton, broker, against the Missouri Pacific
Railroad, Jay Gould, Russell Sage and others con-
cerned in the foreclosure and reorganization OF
the predecessor company to the Fort Scott Wichita
and Western Railroad, will be pushed vigorously
by the plaintiff. 1t grows out of the reorganiza-
tion agreement Of last May by which the stock
holders of the St. Louis, Fort Scott and Wichita
Railroad were promised by the Gould people an
equal amount for their holdings in the stock Of
the new Fort Scott, Wichita and Western Road
$4,000, OO0) on payment of $40 per share assess
ment, which was also to be represented in new
stock. On May 80, the Missouri Pacific, through
the Union Trust Company, bid IN the road aIter
the stockholders had deposited their stock with
the Mercantile Trust Company, according TO the
plan. Counsel for Mr. Stanton claims that with.
out notice to the committee of stockholders OF
the Fort Scott road the Gould people, after ITS
SALE organized the new corporation and the Union
Trust Company conveyed to it all the property;
The counsel also assert that none of the Gould
people nor the Missouri Pacific deposited any stock
of the old Fort Scott road with the Mercantile
Trust Company; that the road is being run py
the Missouri Pacific and in its interest and that
the Missouri Pacific is seeking to deprive the Fort
Scott stockholders of the stock OF the new com
pany to which they are entitled, and that the
defendants have issued second mortgage 10
secure 81 ,00O. 900 income bonds contrary to the
agreement with the stockholders. The Mercantile
Trust Company has never demanded the assess,
mcnt of SlO a share for the old Fort Scott Road
and has never received any of the new stock OF
the new company. but Mr.. stanton has oher"d
to pay the required asscssm} mt and has demanded
the new stock The suit is brought to compel
its surrender by the Gould people. The rcorgan-
ization agreement of last May was signed on PC
half of the st. Louis Fort Scott and Wichita
read stockholders by their committee, Mt. ooihtoh
Iobn II Small and Go0dhoart
Pussc Sage lang ~ SUI aini III. s,, raI Lc LIN Inv
aroher recon- one &c cly backlnaiilng sehoiic. no
II + a uicavunc natter IA sa d. " AM doesI lh-
voIvc $1,000 any way. rcrllp' It would not nave
fern Lrnurht II II had not been for the thrc@cu, N
dictmcnt Of Mr. Coull AMI my elf IL l. principe
" IN some pcopls 10 Kick 4 man when he Is uoWh.
After a satisfied laugh. Mr. sage re'hmci o.auun ),
s uIro ltte follow Who has been d"aing tor sViaI
wears IN unlisted and miscellaneous secu,ltrs l.
have had some d1lings with him myself BLESS vow
ne approved OF tho reorganization oi thc Wluii'a
and there Is nothing i'm II 10 complain a ou.; t.e,p !,
was no Increase IN the debt and wo make the s.o0
cx,ctly tho same "a II was before There werc, re-, I
thiulc between 1000 AMI 5000 shares OF tho S.ocn
tb-t Tid not come into the agreement sno thaE nav
bocn IoatInc about the street stanton taihe 10 NV NV,
about the stock but tCld him Wa coulH hot SiHHe a.
what he socIre1 to want and the suit, Suppo-o, -
tic consequence He probably bought up a 10. D, y,
thinking that he could make profit by seihe ~ U'