Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1890-02-01
THE ROCK ISLANDS REPLY.
The Railway Files Its Answer 70 the
Cross Bill of the Municipal
Stockholders.

The counsel of the Chicago, Kansas & Ne
braska Railway company, and of the Chica-
90 Rock Island & Pacific Railway company,
filed answers in the United States circuit
court to the cross-bill filed by the municipal
stockholders in the case brought by the
Metropolitan Trust company, of New York,
for the foreclosure of its mortgage for
about $26,OO0,OO0.
In the Chicago, Kansas & Nebraska an
swer it is said that Chicago, Kansas d Ne
| braska has no information sufficient to form
a belief whether the county of Ford holds
one-helf of the capital stock of the Arkan-
| sas, Kansas d Colorado railway. They deny
| that the purchase of the Arkansas, Kansas
d Colorado railway by the Chicago, Kansas
d Nebraska was made without prejudice OF
the ownership by Ford county, of one-third
of the property, or any part thereof. That
the Chicago. Kansas d Nebraska is now the
owner of all property of the Arkansas, Kan
sas d Colorado railway. free and clear OF
any right, claim or interest on the Part OF
Ford county, and that the sale of the prop
erty was approved and ratified by more than
a majority of stockholders of the said Ar
kansas, Kansas & Colorado railway, includ-
ing Ford county, at a meeting of the stock
holders duly called and held for that pur
pose. The company denies that the
subscription to the capital STOCK OF this
company by counties and municipalities in
Kansas, or elsewhere, amount to 81, 100000
or any sum in excess of $2,342, 500. The
bonds received by it in payment of subscrlp-
tions of capital stock, we're necessarily sold
at discount and netted only 81, LAG, Ol4.64.
tits denied that the complaining counties
were ignorant of the existence of lease OF
the Chicago, Kansas & Nebraska to the st.
Joseph & Iowa when they voted aid, and
that they well knew that the Chicago, Rock
Island d Pacific furnished the money to
build the Chicago, Kansas d Nebraska.
That on June 1, 1887, the st. Joseph d Iowa
Railway company, under the provisions of
the lease, took possession of all of the Chica-
60, Kansas d Nebraska railway, extending
from st. Joseph to Nora, Nebraska, from
Horton to Her ngton, and of other lines as
fast as completed, and continued to operate
the same until January 1. 1889. That the
complaining stockholders at all times ac-
guessed in the lease and management, and
none OF them complained before this bill of
foreclosure was fled. It is denied that at
the time the lease was executed the Chicago.
Rock Island d Pacific intended to take pos
session of both the Chicago, Kansas d Ne
oraska and the st. Joseph d Iowa finally, and
operate them. tits denied that the complain
ing counties and municipalities and stock
holders residing in st. Joseph are the only
persons who have paid full value for their
stock IN the Chicago. Kansas d Nebraska.
1t Is denied that the Chicago, Rock Island &
Pacific, by secret arrangement, has &C
quired ali or any of the residuary stock of
the Chicago, Kansas Il Nebraska, or by any
secret arrangement or lease, has acquired
absolute possession or control of the prop-
erty. ALI dealings with the Chicago, Rock
Island Pacific have been open and public
to all parties in interest. The rental, they
claim, is fair and reasonable, and it is de-
MED that the Chicago, Kansas d Nebraska
net earnings were more than 30 per cent of
the gross earnings.
1t denies that the Chicago Rock Island d
Pacific has dealt in an unfair and under
handed way with the Chicago, Kansas d
Nebraska, or that it has exercised more in
huence In the control of the Chicago, Kan
sas d Nebraska than its larger interest in
the property demanded. They declare it is
not true that the money advanced by cOun-
ties and municipalities amounted to nearly
one-tenth of the original cost of construc-
ton. or one-tfth of the cost The Chicago,
Kansas d Nebraska was constructed and
equipped, ], 1854 miles of railroad at cost
of $50, $4,000, all advanced by the Chicago,
Rock Island d Pacific company. It is adj |
mitted that the Chicago, Rock Island d Pa |
citic received grants of land and lots, but, it |
is declared that in each case, the proceeds |
therefrom were applied to the erection of |
warehouses, ETC., and that instead of realiz- |
ing profit, the hook Is and has advanced |
$4,000 IN excess of Its receipts from these |
grants.
1t is denied that the material used in the |
obstruction of the Chicago, Kansas d Ne |
braska was purchased by the Chicago, Rock |
Island & Pacific, or that the material was
transported over the Chicago, Ro-k Island 4 |
Pacific, or tn t the road was constructed by |
that company or its agencies They deny |
that the disbursements for construction |
were made by Chicago. Rock Island d Pacif- |
ic, or that all the receipts of Chicago. Kansas |
Il Nebraska have been accounted for to the i
Chicago Rock Island Pacific. It also denies |
that the Chicago, Rock Island & Pacific has |
raid nothing for Chicago, Kansas & Nebras- |
ka stock, but insists that the stock was de- |
hyered, for money advanced and used in the /
construction of the Chicago, Kansas 4 Ne |
braska lines. It denies having treated the |
municipal stockholders as If they had moth |
ing to do with the property, and ADDS that /
due notice was given of all meetings. If the |
municipalities were not represented il was /
their own fault. 1t AYERS that the Chicago, |
Rock Island d Pacific makes daily report /
of the gross earnings of the Chicago, KAN /
sas q Nebraska lines TO the treasurer of that /
company. It Is denied that the cities of /
Wichita and Abilene subscribed stock to aid |
the Chicago, Kansas 4 Nebraska. and AYERS