New-York tribune., 1891-02-19
THE MONON IN LITIGATION.
CHARGES AGAINST DIR. BREYFOGLE. THE
PRESIDENT.
SUIT FOR \ RECEIVER OF THE LOUISVILLE,
NEW-ALBANY AND CLICAGO-EMPIIATIC
DENIAL OF TIE PLAINTIFFS
ALLEGATIONS.

part of various interests to secure .To OF the
| Louisville. Now-ialmy and Chicago Railroad. The
Nonoa.7 u Is now probable t,iat jhc energies of
! tie management OF that company Will be employed
for Jina in rcfun- crave charge Of msmanaSe-
| mcat and fraud brought aa3ins IT, \ dispatch from
Chicago ye-,crday announced briefly that william :.
Alley. Of ". = A;"y Co.. brokers and bankers. at
| 80 20 Efoad way, had applied TucsdaY to Judc;
Trl"y in the Circuit Court. FOR receiver for iha
| company and f5r Injunction to restrain the prcs-
don't nr William l.. Brcyfoglc, from dong certain acts
| which il WI, allssc, n had in contemplation. The
! matter has been referred 20 q Mastc. in Chauccry.
Til, -ai; Is acy to have al important bearing upon
| the coming a1Hua! election next month. when an
effort Is 20 hc made b. The dissatisfied stockholders TO
cXpel thr ircyiogl' management. In fact. upon the
success % TIE ,uit depends Tie possibility Of any
change. jhc Monon Board Of Drcc ~ is classified
orly three of The Who'll, number retire one of The
allca ions mado by Mr. Alley In his complaint is that
such proposition FOR classification of the Loard
ever >lh.liid To the stockholders. he rs that Pr,I-
dent Eryfo-la fal,G"d The records of the company TO
ca1-c ID 20 appear that such CIs- -iGcaOn had been
/ effected. whcrca, # HlceaI AMI unauthorized.
Farther particulars Of the allegation, in the com
! rlJini made by Mr. Alley wcr, learned yesterday.
lie dccar- that The company ha- ci sending the
usual financial reports 20 Tic Now York Office and that
| the agent, here have been ordered not to allow the
accoants r. be examined by the directors. The com
pa.nt declares that Or Ercyfocr has constantly ana
| falsely >urcd the stockholders Unt the compauy's
| Huaaccs Wr,c IN folh-ling condition. whereas hH
j, al -rd 40 have uowH that there were many unpaid
vouchcs- for supplies fu' rentals. truckaec. bridge
cil. repairs for equipment and o,hcr cnlrent opcrat
mc ovrcu-e- Amounting T. several hundred, Of thou
sand, 81 dollar. which the company cannot pay. IL
J., cJf,,d that The coupons bonds falling due since
March, 1890 avc not been paid ont o. earnings, bu' Dy
money borrowed OGt OF bank on short time on plc1t'
Of ,hld mortgage Lord, Of the company, which loans
! arr -ad -tlu 10 De unpaid Erormoa, eNPcnIt"re'
were al,1 declared TO have been made out Of loans
and il i, asserted ila. in consequence Of t"e pr"
cccinrs floating debt OF about +2,OOOOOO ha' De'h
Great g n the .ast year.
The stockholders h March, 179o authorized ne"
ISSUE oi bonds. in order 10 fund az lower I"'e
# Interest t9ee old i-Jc, and TO acquire cAt'h.o
and Ince.-. ,he flciitic, oi the road There nave
rcou -, yY 900 of the, bonds issued and di-po-ei o.
Lut IA, u.i.iIC alcg, that none oi The proceeds nave
ccu u.cI to r,t.e the previous issues or 10 bul" o
! acquire new road, excepting small amouH" i"o
pr, .dcut is ci2g-d with using the bonds - 'oii',''
Tor loan, intended To- prevent d'iault on senior ISSUES
and t,.. .,,rat!u, cNp.r,.-. Then MIR. All " al-'a
n Li, complaint that tp directors have "iaA"''."''
ard ILLEGALLY attempted 10 bind the company t. i''y
and o..lltc when constructed, certain lhe- oi I"'u
which a,, "A, vet simply projected. Il'j nave guar
a.-eld tle interest Ou bonds u be i-'ucl %" 'I,"
lew road, at the rate Of %-',Ooo per H"'
tr, addu, $4,000 to ihc nAed charges oi 'le
nt ] IA
| no ,no,um at lHc meeting Of the board when tAc-c
oil-aIon, vcrc contracted. and then IL i, alleged
r,t t1. rf,..dcut took i've ,lar,, oi stock ir1n tie
| .o,.i.tu,', treasury without Authority aAd DIVIDED
Them between Isaac $. Wud,tan!cy. Of ~" Nlbii}
John IT, Hurhc, ol Chicago, John /. Reynolds D''is;
| +. Hut,nius ana himself, ANA constituted them an
| executive committee - help h.m in III alleged
| schemes, Tie contract, referred I, alove were He
roi,tod prior e. October. 1850. and special meeting
hold ,tt j.
called on insufficient notice 20 approve the contracts
whose true character j, declared 10 have been con-
| ccalcd
Tho complainant also says that 10000 interest
due on bonds Jaluary !. 1891. was pad by over
oh..kn- uc company bank account in Boston. II
+, declared that tie December payroll, wcsc met wfA
Iay checks ,n bank whcro the company had Do
funds the money -uL,cqucntly being borrowed
in tl, city on pledge % third mortgage bond. 10
j., asserted .n the complaint that the company viii De-
compelled 10 raise money n February and March to
prevent default, follows Interest due April /.
tlil.00o: taxes, GiOOJD: notes and othc- Obligation.
.2l0OJO; total -I.0o0 Finally President Eroy-
fu,. O., charged with having sought tp secure an issue
" <21ooUOD row ,to'h for him To- Use q, collateral
and vlilc 10 action was taken ~ meeting of the
d.r.,'1r- held January 80, the plaiutl1 dceln,
,Iat thc plan IS not given MP.
some of the Chio4-p dl patches say that The COM
paint also connect, I~ury =. Ives with the case by
ur 20 unload road owned by lycs upon the Louisville.
SO" Albany and Chicago. Nr. I've -aid Yesterday
tiat there mas, De- mistake in ,ouucctn. hi> uirao
Win tine salt lie acquainted with Dr Brcy-
foIc onlt slightly aud knew nothing of the matter
Nr. Alley, the complainant ia the suit vl5 a sup
porter OF tie oh management Of tho Mouon which
Dr. Hryioelc and his friends turned ont of onlcc Ly
bold .t'Ohe year ago. Friend, OF the present man
aermoIt g-crbe The suit and chargr 10 the work o,
!i-ul Id"IDu' VINO Whe rOicltor oi the company up
- within Two months. Desire Tor revenge on tAe
pal o UP" 0d directors j. also alleged u Inspire the
proceedings,
lic il 80, Ercyloelo is In Ncw York. Yesterday
ne tiNo out Tie following statement. e" ltyc b"el
informed mat such suit la. boon brought and ]
nae been told repeatedly since Henry Crawford
severed h4r connection win this company tlat ho
Wa lIcEduuE "a Sensational suit which would De tho
ahI'-i cH"rJ Oi h, Ifc. This. however, dO., not do
hIn cFdli. Ih' charge, ar. entirely Lcti,iOi, and
.tu-iuoidI me question Oi Issuing ncW stock ht,
uc'c; been considered. The report may grow out of
iir id' t1 ic company la, treasury 42.JOOOOO
General mortgage . per cent bonds which il may sell.
me que -Lou II receiver has been Thought ~.
ANA >rtuitt holder need alarmed over these
sensational fcpOrt, bccaua: the hl, never been
better shape, its earnings Increasing the manage
Wcnt j, largely Interested IN the stock and doing IT,