Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-02-20
AFTER MIR. GOULD.
Trying to Prevent his Control of the Interna-
tiOnal and Great Eorthern-Enorts
to Dust the DIRECTORY.

! Trying to Prevent his Control of the Tnterna-
tional and Great Northern-Eforts
to Gust the Directory.
In view of the recent transfer of the
international to a receivership, the fol-
lowing frem the New York Star of the
10Th inst, may be of interest:
In supreme court chambers yesterday
afternoon Justice 0 'Brien listened for
! nearly three hours to argument upon an
| application for an order requiring Jay
| Gould, the Mercantile trust company and
! the Missouri Pacific railroad company, as
! defendants, to show cause why they
should not be enjoined from voting on
81 ,2S4 shares of the capital stock OF the
! International and Great Northern rail-
road, and why Granville NJ. Dodge, rep
resenting the holders of majority Of the
stock und bonds of the Missouri Kansas
and Texas railroad, should not have his
right to vote upon the same affirmed.
Mr.. e. Ellery Anderson, in behalf Of
the Dodge party, desires to GUST the
present Gould directorate from the con-
troll OF the International and Great
| Northern railroad in the annual election
which will occur April /. The 81 ,284
shares i'll question represent almost the
ever woes upon them will carry the cleo
ton. AT present the stock stands in the
name of Mr.. Gould, and is held as col
lateral by the Mercantile Trust compa-
ny, which processes absolute neutrality
in the interesting fight which is progress
ing.
In 1881 the Missouri, Kansas and
Texas railroad acquired the outstanding
stock OF the International and Great
Northern by exchanging two shares of its
own stock for one of the latter's. The
certificate of the shares thus obtained
stood in the name of Grenville NJ. Dodge.
1t was worth about So 900 600. The
Missouri, Kansas md Texas railroad
then proceeded to lease the International
and Great Northern, holding itself liable
for all of the latter IS debts and receiving
in return title to all of its earnings.
When MIR. Gould obtained control of
the Missouri, Kansas and Texas he leased
il and all its subsidiary roads to his own
property, the Missouri Pacific. When
the 1888 election came round he caused
the 81 ,264 shares Of International and
Great Northern to be surrendered and
transferred TO himself He then filed a
declaration Of trust, saying that he held
the stock in trust for the lessee, the Mis-
OF course the fact that the certificate
stands in Mr.. Gould's name renders it
impossible for the Dodge interest, who
claim ownership OF the stock, to vote
upon it, and gives the right prima facie
to Mr.. Could who proposes to take adj
vantage Of it in order to get control of
the road.
The Missouri, Kansas and Texas people
do not like the prospect of having the
policy of the International and Great
Northern directed in the interest of the
Missouri Pacific, competing line. Their
system is dependent for its prosperity
upon an equable distribution of the Texas
cattle, cotton and coal traffic, which is
fed TO them by the international and
Great Northern. They do not think that
they have received fair play, in view of
the fact that at the time the 81 ,2S4 shares
were turned over to Mr.. Gould by the
directors of the Missouri Pacific and of
the Missouri, Kansas and Texas both Of
these boards were composed of gentle
men acting i'll his interest. The two
boards were, indeed, practically identi-
cal in composition. The Missouri, Kan
sas and Texas railroad, however, dis
lodged the Gould directors at its last
election.
Meanwhile, nevertheless, an emphati-
calIy Gould directory is debating the
policy of the international and Great
Northern, and is taking good care that
the Missouri, Kansas and Texas does not
receive a very large share of the Southern
traffic. It is quite natural, therefore,
that the Dodge interest should desire to
see Mr. Gould hand over his proxy on
81 ,2S4 shares to President Dodge or to
the receiver Of the Missouri, Kansas and
Texas.
At present the Missouri, Kansas and
Texas is under foreclosure, having de-
faulIed the interest on its first CONSOLE
dated mortgage bonds, an issue amount
ing to SAC ,000 900; the 81 ,2S4 shares in
question form part of the security held for
this Indebtedness. The roads poverty
has been aggravated good deal by
its responsibility for the International
and Great Northern debts, which it is
asserted by the Dodge interest were sad
died upon it in way hardly consonant
with strict justice. It is affirmed that
the terms under which the Missouri Pa
cific leased the Missouri, Kansas and
Texas were Identical with those under
which the latter leased the international
and Great Northern-in both Instances
the lessee became responsible. for the
lessor debts and acquired its income.
Now the International and Great North
ern has not been earning its fixed charges
during the past three years, and the
Gould contingent in control of three sys-
TENS have charged the deficit to the Mis-
souri,, Kansas aud Texas.
Mr. Dodge AYERS that bankruptcy,
hopeless and irremediable, threatens his
road. According TO him, the stock Sl-
ders ana bondholders have lifted up t. If
voices IN united protests. They obje5 go
being inundated on the Gouldian densc.
Early in the present year they che eus'ir.
Anderson as counsel, aud instrue IN
TO ahustle He hustled. + st