New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-28
HOOKING VALLEY BONDS.
STOCKHOLDERS OPPOSE DEFAULT.
A MEETING THAT CALLS ON PRESIDENT SHAW
AND SEVERAL DIRECTORS TO RESIGN
MR.. SHAW STANDS HIS GROUND.

MR.. SHAW STANDS HIS GROUND.
Another chapter Is to be opened in the history Of
the Inflated Columbus, Hooking Valley and Toledo
Railway Company. The stockholders met yesterday
at No. 40 Wall-st and demanded the resignation ~
President John W. Shaw and Of several directors, and
voted TO cooperate with tie existing committee OF
stockholders in endeavobng TO prevent default IN
interest on September on the consolidated bonds.
and tho appointment Of receiver The president
and directors refuse to resign and the next step of
the stockholders organization will doubtless involve
fresh litigation.
The meeting was expected to be lively one. II
proved TO be comparatively placid. 1t was called
by the committee Of stockholders composed OF Samuel
D. Davis Thomas II. Ryan and Charles Is. van NOS
trend, and the call was approved by Charles b.
Alexander vice president OF the company. Messrs'
Alexander Davis and Ryan constitute a minority OF
the Board of Directors. The committee represents
eo1es shares, out OF 16.963 shares There wcr,
about forty stockholders at the meeting. The total
representation of stock 67,74S shares several
prominent Wall Street men were present. including
ex Secretary Fairchnd Ex-Governor Hoadly was
present. his deep bass voice In defence Of Fres
dent shaw. James Fraser was elected chalrnaYs
Elhu Root, In behalf of The committee, called adef-
ton to the constant payment of Interest for eight
years, and declared that In 1855 the company had
cleared $685. 900 over fixed charges He rcitcd Mr.
shaws public declaration on July 90 that the company
would default on its September interest and the private
advice given by OF the directors for tho STOCK
holders to 4" get OUT and make money out OF tho
reorganlzatioh.n At iGle present crisis President
shaw was standing neutral, whereas he had been
elected represent and protect the stockholders In
spite of a recent falling off in earnings which
there was grave reason to suspect the management
lnened should fall or the company had no floating
debt could earn the of the last six months
tba nd I'm n beff nlVgcai cOndi-
ton. lie denounced the position of the directors in
refusing TO tide temporary money embarrass-
nent and called them to get out' ii they could do
nothing and let other men try
Mr. Van Nostrand made remarks 10 show that
there was no excuse for the decrease In earnings.
w. C. Andrews declared that the road ran through a
splendid agricultural region, while II also enjoyed a
great coal trade which alone, in few years, would
nav tbe interest on the consolidated bonds. John D.
McCook then made a long speech detailing the vain
efforts of the stockholders committee TO avoid de-
,ault \ proposition to allow a default, but offer
defence against recevership proceedings by charging
faint Of fraud of the bonds as he'll. hal beeh
rejected by the board of directors President sha"
alone voting yoa lie could not Mr.. McCook said,
control his own nephew. who still remained general
manager nor his creature. Treasurer Cot' lho
books showed that Mr. Shaw held only 100 shares OF
The companys stock, nephew Shaw only 100 j. ..
while Treasure Colt held none.
Mr.. Uoady asked II Mr.. Shaw had been offered as
sstance in borrowing money to provide for the Sep
t.mber interest. Yes said Mr.. McCook, DIT Ms
attitude was this that he wanted to 90 TO banners anu
saw Il VIII borrow your money but 1t VIII De on ho'es
for which don't believe you will ever get your pay
Gaugbter) The speaker credited President sha" WIN
acting con snentiousy. but he severely condemheu MN
for refusing to do anything that would save the
Il Tho boO
Before vote was taken on the resolution calling
for the resignation OF directors, Mr.. Hoadly read
President Shaw's instructions to the Columbus, oho'
officers TO contest any attempted suit for forecoSnr@
Mr. Root rdlculcd the instructions becahse 'u'
majority directors took the ground that the COMPANY
could not attack the validity Of the coh'oi'u"'cu
mortraoc Mr. McCook denounced the majority
diroc tors and criticised Mr. Shaw because the minority
directors had been unable to get quorum Oh inc oO
Yesterday morning before the meeting
Mr. Hoadly-As a matter Of fact are there any houlngs
OF bonds actually tainted with fnu3F
MI McCook-We accept the position OF MI SHAW WIN
says that there ApplauseJ
Mr. Hoadly then asked long question: "lIoh 'il'
McCook could not understand. a laughabie tahgie
eusued which permitted Mr.. McCook TO recall the
fact that once when confronting chauncey NJ Depe"
on some question finding that he could not hnlSn hiS
sentence Senator Evarts remarked abruptly ioi
| feel Ike our friend Chaunccy here, WIN cOlnpi"i"'
of being short uf terminal facilities , u
Resolutions were finally carried unanimously cal
ing for the resignation of President Shaw ana
sUc khoders' committee were also directed 20 GlnploS
counsel to protect the interest OF 'S s RYAN and
Davis met President Shaw at the company Once anu
the absence Of quorum I PrsvefH W We ad to
Mr. shaw but he peremPtorily refused con-
troversy are those which ex-Judge stevenson Burke
and his associates were charged with issuing without
the company receiving any pay for thcnl'