The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1888-05-10
JAY GOULD.
He Meets His Match IN Some
stockholders in HIS South
western System.
An Injunction Ties Him Up Tenn
porar1ly, and Threatens to
Do so Permanently.

New YORK, May 5.-The Times pub
fishes the following;
"Jay Gould, Russell Sage and other
officers of the Missouri Pacific Railway
company and Missouri, Kansas and Texas
railway leach board of directors is COM
posed substantially of the same people,
and each is controlled by Mr.. Could, had
di,agreeable surprise party yesterday
afternoon when they were served with an
order to show cause why they should not
be made to halt in their eEdervor to get
absolute control in The International and
Great Northern railroad and sever it
from its owner, the Missouri, Kansas and
Texas. An order was procured from
Judge Barrett yesterday, in the supreme
court chambers, by Simon Stern, who,
with E. Ellery Anderson, is counsel for
VIM. Loulon Bull and VIM. Martin, who
represent majority of the stockholders
of the Missouri, Kansas and Texas. Mr..
Martin represents the stockholders in
Amsterdam, Holland, who own about $780,,
600 shares, and Mr.. Bull represents the
owners of about 100000 in New York.
There is in all about 100000 shares, so
they control clear majority.
After the annual election of the COM
pany on May 10Th, they propose to GUST
the Gould board, and put the Missouri,
Kansas and Texas in their own hands.
With an order to show cause, Judge Bar
rett granted temporary injunction re-
straining Mr.. GOu and his associates
from in any way "monkeyipg" with the
stock or securities of the Missouri, Kansas
and Texas, OR of the International and
Great Northern, or in any way changing
the status of either company until after
the annual election, and they are
ordered to show cause, in addition, why
acts in relation thereto that they have re-
Gently done should not be declared void
for illegality.
Mr.. Gould and his associates want to
get control of the International and
Great No ,thern. They began on April 2,
without giving majority of the stock
holders of the Missouri, Kansas and Texas
any notice of their intentions.
The Goud members of the board of
directors of the Missouri Pacific met and
passed a resolution reciting that the Mis-
souri, Pacific had advanced about 100000
on account of the International and
Great Northern, and ask for security &C
, cordingly. The directors of the Mis-
souri,, Kansas and Texas voted-it must
[ not be forgotten, that the board of di-
l rectors of the Missouri, Kansas and Texas
f and of the Missouri Pacific are prac-
5 tically the same, and made
! two notes -one for $2S9,OOO and another
4 for $4,000, representing the amount
. of alleged advances. They were delivered
f to the Missouri Pacific directors as
9 security; that is, they Go ivered to
themselves $1,5OO,OOo of 6 per cent bonds
/ ! of the International and Great Northern
!. The Missouri Pacific board of directors
i also passed another, resolution reciting
= that large number of suits had been
E brought in different states for land and
! other claims against the Missouri, Kansas
and Texas and International and Great
: Northern, and asked for further security
TO indemnify them against the possible
a re suit of these suite, some 200 to 300 in
I number.
Y the Missouri, Kansas and Texas board
!. of directors, therefore, directed their
g treasurer to deliver to the Missouri Pa
c.fic, as indemnity, $4,000 shares of the
g international and Great Northern and
, 10000 shares of the Galveston, Houston
q and Henderson railroad stock, which coz.
q meets the Great Northern with Galveston
and also 5000 shares of the Bonneville
n bridge. Having got all this property,
g Gould & Co. proceeded to borrow money
o from the Mercantile Trust company,
Jay Gould, Russell Sage and Henry G.
Marquand gave their notes for
the money and stock. The
= bonds and notes were deposited
e in the Mercantile Trust company, which,
q it is understood, does not claim to hold
- this property as collateral for loans,
+. Goulds Slge's and Marquand' G
/ signatures to it being considered
q amply sufficient. 1t was not
;. until last Tuesday or Wednesday thai
g Messrs. Bull and Martin, of the committee
of the majority of the stockholders Of
the Missouri, Kansas and Texas, learned
of these transactions and that about all
- the shares and bonds of the international
. and Great Northern passed into the con-
' troll of Gould without the payment of 6
cent of money.
They have also learned of another STEP
in the scheme. The board of directors Of
the Missouri, Kansas d Texas and Inter
national d Great Northern board (Jay
Gould's board) had met and had hurriedlJ
agreed to cancel the lease of the Inter
national 81 Great Northern to the Missouri
Kansas 81 Texas. The effect of thi
would be to put the road completed.
at the mercy of Gould. Having ascer-
tanned the position of affairs members o
the committee of the majority of tn
stockholders met on Thursday, and facet
! the question as it presented itself t.
= them.
y That proposition is this:
Il Under pretext of the abov
y stated advances by the Missouri
% Pacific to the Missouri. Kapsa
= and Texas, all the stock the,
n owned by the International and Grea
- Northern had been placed in the name O
=. Jay Gould, and had come under the con
y troll of the Missouri Pacific which he ron