Wichita eagle., 1890-01-21
THE ROCK ISLANDS REPLY.


| From the Capital.
The counsel Of the Chicago, Kansas &
| Nebraska Railway company, and of the
Chicago, Rock Island & Pacific Railway
company, filed answers in the United
States circuit court yesterday, to the
cross-bill filed by the municipal stock
holders in the case brought by the
Metropolitan Trust company, of New
York. for the foreclosure of its mort
gage for about $26, 900, 900.
In the Chicago, Kansas & Nebraska
answer it is said that Chicago, Kansas
& Nebraska has no information sufficient
to form belief whether the county OF
Ford holds one-half of the capital stock
of the Arkansas, Kansas & Colorado
railway. They deny that the purchase
of the Arkansas, Kansas & Colorado
railway by the Chicago. Kansas &
Nebraska was made without
prejudice of the ownership by Ford
county of one-third of the prop
erty, or any part thereof. That the Chi
cago. Kansas & Nebraska is now the
owner of all property of the Arkansas,
Kansas & Colorado railway free and
clear of any right. claim or interest on
the part of Ford county, and that the
sale Of the property was approved and
ratified by more than majority of
stockholders of said Arkansas. Kansas &
Colorado railway, including Ford
county, at meeting OF the stockholders
duly called and held for that purpose.
The company denies that the subscrlp-
ton to the capital stock of this company
by counties and municipalities in Kan
nlSnvr harn n 81 1tiH mn
or any sum in excess of 81, 342 800 The
bonds received by it in payment of sub
scriptions to capital stock, were neces-
sarily sold at discount and melted only
So, 146, 015.64.
counties were ignorant of the existence
of lease of the Chicago, Kansas & Ne
braska to the st. Joseph & Iowa when
they voted aid, and that they well knew
that the Chicago, Rock Island & Pacific
furnished the money to build the Chi
cago, Kansas & Nebraska. That on
June /, 1887, the st. Joseph & Iowa
Railway company, under the provisions
of the lease, took possession of all of the
Chicago, Kansas & Nebraska railway
extending from St. Joseph to Nora,
Neb.. from Horton to Harrington, and
of other lines as fast as completed, and
continued to operate the same until
January /, 1889. That the complaining
stockholders at all times acquisced in
the leasa and management, and none of
them complained before this bill of fore
closure was filed. 1t is denied that at
the time the lease was executed the Chi
cago, Rock Island & Pacific intended to
take possession of both the Chicago, Kan
sas & Nebraska and the st. Joseph &
Iowa finally and operate them. 1t is de-
MED that the complaining counties and
and stocknoldeIs residing
in st. Joseph are the only persons who
have paid full value for their stock n
the Chicago, Kansas & Nebraska. 1t is
denied that the Chicago, Rock Island &
Pacific. by a secret arrangement, has
all or any of the residuary
stock of the Chicago, Kansas & Ne
braska, or by any secret arrangement
or lease has acquired absolute posses
sion or control of the property. All
dealings with 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
denied that the Chicago, Kansas q Ne
per cent of the gross earnings.
1t denies that the Chicago, Rock Island
& Pacific has dealt in an unfair and I'M
demanded way with the Chicago, Kansas
& Nebraska, or that it has exercised
more influence in the control of Chicrgo,
Kansas & Nebraska than its larger inter
est in the property demanded. They de-
clare it is not trne that the money ad-
vanced by counties and municipalities
to nearly one-tenth of the ORR
ginal cost of constitution, or one-fifth of
the cost. The Chicago, Kansas & Ne
braska was constructed and equipped
400. Al miles of railroad at a cost of 3d.
800. 600, all advanced by the Chicago,
Rock Island & Pacific company. 1t is
admitted that the Chicago, Rock Island
& Pacific 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 realizing profit the Rock Is
land has advanced $4,000 in excess Of
its receipts from these grants.
1t is denied that the material used in
the construction of the Chicago, Kansas
& Nebraska was purchased by the Chi
cago, Rock Island & Pacific, or that the
was transported over Chicago,
Rock Island & Pacific, or that the road
was constructed by that company or its
agencies They deny that the disburse-
ments for construction were made by
Chicago, Rock Island & Pacific. or that
all the receipts of Chicago. Kansas &
Nebraska have been accounted for to
the Chicago, Rock Island & Pacific. 1t
also denies that the Chicago, Rock Island
& Pacific has paid nothing for Chicago,
Kansas & Nebraska stock, but insists
that the stock was delivered for money
advanced and used III the construction
If the Chicago, Kansas & Nebraska lines.
1t denies having treated the municipal
stockholders as if they had nothing to
10 with the property and adds that due
notice was given Of all meetings. IL the
were not represented it
vas their own fault. 1t AYERS that the
Rock Island & Pacific makes
laily report of the gross earnings of the
chicago, Kansas Sc Nebraska lines to the
treasurer of that company. 1t Is denied
hat the cities of Wichita and Abilene
subscribed stock to aid the Chicagot |
Kansas & Nebraska, and AYERS tina, |
township. Republic county,
OWNS 145 shares and no more.