Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-02-20

turn laQueQ II over TO JuuEG JOIN u.
Dillon, their counsel. resolving at the
same time that in order to protect the
Missouri Pacific against the liabilities it
had assumed in behalf OF the Interna-
| tional and Great Northern (the same liza
bilities, by the way, which they had all
ready made the Missouri, Kansas and
Texas partially settle, while ii was in
their controD the stock of the'road, the
81 ,284 shares-ought TO be handed over to
an agent of the Missouri Pacific, i. e. !,
Mr.. Gould.
To say that the Dodge interest is. sore
is putting it very mildly. 1t is having a
good deal to say just now about pirates
and wreckers. The plaintiffs in the
present suit hold that no interest on the
Missouri, Kansas and Texas bonds has
been paid since June, 1888. All of its
earnings have been retained by the Mis-
souri, Pacific as protection against liabili-
ties alleged to have been assumed for it.
Meanwhile the road has earned $500, 900
in excess of Its operating expenses and
fixed charges The vast majority of its
stock holders would like to know what has
become of this money.
The plaintiffs maintain that the right
to vote on a certificate of stock does not
pass to a collateral pledge hence the Mer-
camille trust company must not attempt
to choose directorate, and Mr.. Gould
being barred out by considerations of
equity implied in the above statement of
facts, the only eligible voter is Mr..
Dodge.
The Mercantile trust company eX-
pressed itself through counsel as being
IN a condition of armed neutrality. 1t
sides with neither combatant but asks the
right to be heard if it wants to be, oil
any order which the court may grant.
Winslow s. Pierce, Jr. for the de-
PENDANTS, explained that the stock of the
International and Great Northern has
never stood in the name of the Missouri,
Kansas and Texas railroad, because the
laws Of Texas do not permit corpora
ton to control the stock OF competitive
company. Hence the 81 ,284 shares have
always stood in the name of an individ-
ual
Mr.. Gould g purpose in having the
pledged stock transferred to his name h IS
been published to the world in his printed
declaration of trust. His motives, he as
serts, are entirely altruistIc. He dis
claims any personal interest in the stock;
it is in his name for the benefit of the
Missouri Pacific railroad, the PLEDGE.
The pledgor, the Missouri, Kansas and
Texas, has not, as yet, discharged any
considerable portion of its liabilities, and
is not likely to do so. Its board OF di-
rectors (the old Gould board of course),
has passed two resolutions confirming the
pledge OF the stock which is therefore in
violable.
Mr. Dodge's cohorts are not pining so
much to protect the interests OF stock
holders as they are to render the Inter
No
TO their road, to the great detriment of
the Missouri Pacific. Their possession of
the 81 ,2S4 shares will decrease their
value, and thus put the Pledge in pre-
caTious position. Mr.. Gould thinks it
perfectly obvious that the Missouri Pa
cifc and the International and Great
Northern will have their interests better
protected sinder an independent manage
ment, as he calls his direction of their
affairs, than under Missouri, Kansas and
Texas control.
When the International end Great
Northern was in a bad way fnan-
cially, and on the point of de-
faulting an obligation, Mr.. Gould
kindly loaned it 5000 ,000 Hence,
as a creditor, he has personal
reasons for wishing its stock to be in
good hands, and not so held as to i'm
peril its charter under the laws of Texas.
Messrs. Harrison A. Cross and George
A. Eddy, receivers respectively of the
Missouri Pacific and of the Missouri,
Kansas and Texas, got the United States
circuit court t. extend their jurisdiction
so as to include the International and
Great Northern stock. A deed of Assign
ment, making over this stock, was de-
livered to them by the Missouri, Kansas
in power, and was duly accepted by
them.
On January 4 1889, an amended COM
plant was served on the Missouri Pacific
i'll the present suit. On January 80 the
two receivers, who are said to be in the
Gould interest, asked the court whether
they have the right to vote on the 81 1884
shares The United States circuit court
for the southern district of New York said
that they had. Hence neither Mr.. Gould
nor the Missouri Pacific can be a party to
this present suit.
The Gould party seem to be much hurt
by the allegations that the International
and Great Northern directorate is identi-
cal with that of the Missouri Pacific.
They assume an air of righteous indigna-
ton against the people who are so unkind
as to accuse them of such duplicity.
Mr.. George J. Gould, acting president
of the Missouri Pacific, is very sure that
the stockholders of the Missouri, Kansas
and Texas are not interested in this fight
at all. His father sent his proxy on the
81 ,2S4 shares to St. Louis and then tele-
graphed to know whether Receiver Eddy
had anything to do with the present SUIT
MIR. Eddy promptly disclaimed any such
trifing with Mr.. Gould's feelings; but
both he and Mr.. Gross have subsequently
sent to the plaintiffs dispatch to the eff
feet that they do not propose to interfere
with their present attempt to get hold Of
the voting power they want.
Judge John f. Dillon, also of counsel
for the Gould interest, holds that the |
New York supreme court has no juris- |
diction in the matter. The suit to fore
close the mortgage on the 81 ,2S4 shares |
was brought before the Kansas courts in
June last, and they accordingly have |
and exclusive jurisdiction. The
plaintiffs, moreover, have no standing
anywhere, because they assigned their |
interest III the stock long before the COM
of the present suit.
The argument win be resumed this |
afternoon at o CLOCK