Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1889-02-21
THE I. AND G. N.
Petition of the H.. K. and T. Asking
for Receiver for the international.
The Suit Of Jay Gould Against the Interna-
tIonal Road the Ground on Which the
Petition is Based
Special to the Gazette.


international and Great Northern rail-
way:
Jay Gould, plaintiff. VS.. International and
Great. Northern railroad company, defendant,
No g12S. Suit pending in the district court OF
Smith county, Tex.
And now comes the Missouri, Kansas
and Texas railroad company, a corpor-
alton created by and under the laws Of
the state of Kansas, whose domicil is at +,
to-wit: Parsons, in the state of Kansas,
OF which corporation Rudolph v.
Martinson, who is a resident and citizen
of the city county and state Of New Y ork !,
Is the president; and prays leave of this
honorable court to file this its plea of in
PREVENTION and defense to the cause of
action declared upon in the above en-
titled cause And leave being had, your
petitioner charges that the said defend
ant, the International and Great North
ern railroad company, is a corporation
created and organized by andtunder the
laws of the state of Texas, whose doni-
Gle is at the city of Palestine in the coun-
" of Anderson, state of Texas; and the
president of said corporation is now and
has been for nearly eight years said
plaintiff Jay Gould. That the said de-
fendant has owned and operated under
the name and style of the international
and Great Northern railroad company,
about S25 miles of railway within the
state of Texas, to-wit:
l. A line from Longview to Houston, a
distance of about 232 miles.
2. A line from Palestine to Laredo, a
distance of about 4I5 miles.
3. A line from Houston to Columbia, a
distance of about fifty miles, known as
the Columbia branch.
f. A line from Phelps to Huntsville,
distance of about eight miles, known as
the Huntsville branch.
8. A line from Troupe to Mineola, a
distance of about fOrty-four miles known
as the Mineola branch.
6. A line from Georgetown to Round
Rock, distance Of about ten miles,
known as the Georgetown railroad.
z. A line from Henderson to Overton,
a distance of about sixteen miles, known
as the Henderson aud Overton railroad.
6. A line from Houston to Galveston, a
distance of about fifty miles, known as
the Galveston, Houston and Henderson
railroad, which was leased to the said
petitioner and operated by it.
In all, said defendant owns and oper-
ates about 825 miles of railroad in the
state of Texas; also all the sidings,
switches and appurtenances thereto be-
longing. IrtervenOr charges that on the
4th day Of May, 1881, the said plaintiff
procured and consummated a lease for
the period of ninety-n years of this
intervenor, to-wit: The Missouri, Kan
sas and Texas railway company to the
Missouri Pacific railway company upon
terms and conditions set forth in an in
strument then and there signed by the
parties; a copy of said lease is marked
''A' and made part hereof; that the
mileage of the Missouri, Kansas and
Texas railway so leased is S26 miles then
in operation besides such additional mile
age as might be added under the terms of
said lease.
That afterwards, as petitioner is adj
vised and believes and so charges on, to-
wit: The - day Of June, 1881, the
said plaintiff, Jay Gould, in consumma-
ton of a plan divised by himself to build
up and enrich the Missouri Pacific rail-
way company, in which said plaintiff was
then and there very largely interested,
procured himself elected president of the
defendant railway in this suit, and then
and there caused the defendant to be
leased to this petitioner for the period of
nlnety-nine years on terms similar to
those described in the said exhibit ga -
fled herein. (The copy of said lease is
not now in hand, but will be filed as
exhibit B - and referred to as part
hereof.
Petitioner is advised and believes, and
so charges the fact to be, that there was
no power or authority, in law, for the
lease of said defendant, the international
and Great Northern railway, to the said
Missouri, Kansas and Texas railway; that
the same was then and there and since
forbidden by law. Yet the same was, in
fact, so leased in form of law, and be-
came part OF the Missouri Pacific system
of railway, and so continued until the
ID day of April, 1888, when the same
was, by resolution Of some kind now
unknown to petitioner, severed from the
said Missouri, Kansas and Texas railway
Petitioner charges that On the 10th day
of May. 1888, at the stockholders meet
my of the Missouri, Kansas and Texas
railway company, at the city of Parsons,
in the state of Kansas, a new board of
directors were then and there elected
and the old board of directors of which
Jay Gould was one and was the president
of said company, and said board was de-
feated and rejected, and a series of reso-
lutionS were then and there adopted by
said meeting condemnatOFy of the action
OF the old board of which said Gould was
president; a copy of which marked" Ex-
hibit c, - is attached hereto as the allega-
tions of this petition.
That the said petitioner, the Missouri,
Kansas and Texas railway company, be-
came and was the owner, at and before
the aforesaid election of the 10th day of
May, 1888, of 81 .2S45a shares of the
capital stock of the said defendant, the
and Great Northern rail-
road, which shares were for 500 each,
and amounted TO 50, 72S $50; that this
was the total amount of stock then issued
and outstanding, save and except 200
shares, which amounts TO $40 600, held
by others now unknown. Petitioner
charges that the said Missouri, Kansas
and Texas railway, in the years 1887 and
1888, defaulted upon its interest while in
the hands of the said Missouri Pacific
railway under the management of said
plaintiff; and the trustee, the Mercantile
trust company of New York,
filed bills against the Missouri,
Kansas and Texas railway, alleged
insolvency and default OF payment of in
terest and floating debt, and the same
was placed in the hands of receivers, to-
wit: The entire lines owned and leased
and operated by said Missouri, Kansas
and Texas railway company, save and
except the said defendant, the Inter-
national and Great Northern railroad