New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-17
INVOKING THE STATES AID.
DRASTIC ACTION AGAINST THE PANAMA
RAILROAD.
TIE DIsFRASCHISEMENT OF STOCK HELD IN
FRANCE, THE REMOVAL OF TIE DIREC
TORS AND THE APPOINTMENT OF A
RECEIVER DEMANDED.

Albany, Jan. l6.-An application has been
made through Root & Clark, of New-York, to the
Attorney General of tie State, asking that an
action be instituted against John Newton, Charles
COudert, Ernest l.. Oppcnheim, julius w. Adams,
Robert 4. Chcsebroush, Edward \. Drake,
Samuel II. Probasco, Xavier l1oyard, Samuel NJ.
FELTON,, ID. LowI,er Smith, J. Edward Simmons,
William B. Franklin, James ii. Parker, Henry
Boudct. Paul Arthur Chcramy, Paul Emile Fran
co.'s lfyronimus, the Universal 1ntcroceanio
Panama Canal Company and the Panama Kali
road Company, having III view the removal OF
the directors Of the Panama Railroad Company,
the disfranchsemcnt Of the stock held by the
canal company and the appointment Of receiver
for the railroad company.
The Attorney General is asked 10 begin the
action in behalf Of the people OF the state. lie
has directed the attorneys for the railroad com
parry TO he informed that hearing upon the
application will be had before him at Albany on
Saturday next at half-past | o'clock. for tn"
purpose of determining whether the action slall
be instituted not. copy OF the proposed
complaint is 10 be sent 10 III" attorneys OF the
railroad company, and they will have an oppor-
tunity of nspcc;ing the exhibits which therein
referred TO before the hearing.
The complaint in the proposed action sets ior'l
the salient points of the treaty Of December IL.
1916, under which tho United States Government
assumed protectorate over In" lsthmus OF
Panama, and refers 10 the exceptional privileges
accorded to the Government and to the corpora
tions to lr created under its auspices. 1t SETS
forth the terms of the grant made by New-"rahaua
TO Mcssrs Aspinwal, Stevens and Chauncey, an"
calls attention to the covenant cohtaih'u i"
thai grant that, during Nc continuance ol th"
railway privilege. the Government OF New
Granada could not itself undertake the opening
Of or grant TO Others the right 10 open marl'In'
canal across the Isthmus 70 connect the two
seas without the consent Of the Panama l''i
road Company. Based upon this grant the State
Of Ncw-Yorl was called upon TO incorporate the
Panama Railroad Company 70 receive an assign
mcnt thereof. which it did in iSi9.
Attention il called 10 subsequent contracts by
which il was intended that the railroad company
and its stockholders should be protected against
ihr building Of "A canal across IN" lsthmns. ana
,o othcr mcaanrcs calculated TO secure the DONNA
tion Of America through the railroad. Reference
ia also had 10 the concession made 70 Napoleon
wvs. IN MAY 1873. Of the right to build a canal.
which grant is the one that bccam" the property
~ tho Panama Canal COMPANY This grant "Spr-
cjollv nrovidrd for decentralization 10 tn" rail
wov unless an amicahc arrangement couh De-
o,,.rod into permitting the building Of the canal
Tho alteration is then made that. IN h"u ol
uorirc such Arrangement or of securing IN"
consent Of the railroad or paying it or the ,o''''
biap Government proper indemnity, the canal COM
many tecomc tho purchaser Of 6s.13i shares out
or total Of 20 900 shares Of this rallroad COM
many: that by means of IN" voting power oi INV
sharrs 80 acquired the canal company las ~"
allc 70 and has in effect mantaincd IN once '''
moro than ten years directors OF IN" IAllro''
COMPANY who were friendly 10 the interests "
the Canal Company and disposed 7" carry our l'1
nolicv. and who have in fact managed IN" al
fairs of the railroad In the interests OF INC canal
comnapy and against the interests OF III" rali-
road c,mpanv itself and Of its minority sl"cr
holders. and in violation of the purpose Tor "hi'h
Tin, railroad company created by IN" p'"p"
Of the State Of Ncw-lork.
Details are given Of the destructive nature ~
this policy Of the acquicsccnc" OF thr r'Ilr"''
directors in the efforts of the tanal '"h'PanN u"
.c,urc thc conplction of the canal, which II com
plrtcd would eliminate the railroad a'..'""'iN' 1t
:, stated that thc Superintendent and officers OF
the railway have beer in the pay oi the ca"'i
comnanv acting for its interests and a against
the railway company in all matters o'u'''1 Wv
,r.rs,ort,tion service of the railway company 10
/
business Of constructing the canal Alterations
.r. mad, that the railroad companys land, quar-
r;o and other prOporty were turned over Will
! ou, consideration to the canal company, "hl''
nm tLc other hand. extravagant prices were pal'i
Lv tbo railroad for useless property alleged 10
| ,o,,r,, IN the canal company II Is also declared
,L,t .oIopn agreements were entered INTO py W'l'"
,h. railroad company agreed 10 perform railway
.orvc. fer fine canal absolutely without any proh'
that special arrangements were 'i"i'u i'w .s -,
! tween the canal COMPANY an" w Wv !uo,,nic.o
tLc railroad comuany looking 10 the lndcinnil.Ma- M
/ zion of thr directors for their services ny Wv
canal company: that the Board OF Dlrcctprs . al,
not really Stockholders, and that al,n'ha" h";,
noninallv hold one slIarc cacli, oven tl't I."i ~
~ really owned by the canal cohipliA ~
further urged that the organization OF ,r nti,
! componv is in rcpugnance 10 'hc oi!-'": 90 a.,
! of thc railroad company, ana that, even ~ " ~
canal company had the power 10 aol'i,r
tool of the railroad company, whlch Is ncli' h ~
! ,ho voting power thereon cannot -" W., ~, ~ .L
III hostile interest against the interests ~ 'i'
,nnor;tv stockholders and AGAINST the Interests
! "f Tho ucople of the State of New, YORK. lt'iN
IL is alleged that the policy Of thc ana Noi u,
n,r,. sincc assuming the control mas p''i "i' VI
nhmsc of the franchise, property ana p..I :" ",
'h" r,iIroaJ company and nmical t. the p'"pl" ol
! dis state and of their irliow-cuiNhS ~ .n
J'nit Safes AMI II allowed to DE- iuf',r @ carr ~
. iii In. subvrrsiye of the public PURPOSES III
,nndcd 10 be- subscrvcd hy the charter Of the com
pany. ;, A., a;roo,ors nrococled against have
m M'' connc"cd ~, with the board during the Whole
"r the period in which the acts connlair,1, ni y.
,,orn ncrformcd, hut to these ~ II alh'.'l NAV
nI,ro,gh fully aware of the facts no r'iort 'ii''
hi,'. @ hn, made by them directors q remedy
Tho wrongs which are said to have Deem per">
i, ;s believed that no case has ever been pre-
sortcd 70 the Attorney General involving on"I
tons Of greater public interests tilan Iho,r WmaIi
he will b. called upon to cohsider upon '"' 'PP''
cation.
,,p pT,JvEJS CONDITION.