New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-06
WAS THE ROAD PLUNDERED9
CRAVE CHARGES AGAINST EVANSVILLE AND
TERRE HAUTE MANAGERS.

CIRCULAR OF W. IL 1lLfOl'p fhr->ipi'Ni '' I'M
ro,pD OF DIEEcroRs-iLLEGAL EAvERsloN
OF 100000 AI.I,EGED-suITs THHEAr'
r,yrp AND SOME ALREADY BEGUN
REPLY OF II. l. NICHOLAS & co.
Considerable comment was excited in Wall Street
yesterday by a circular 10 stockhoiders OF 'he
r,,a,sville and Terre lIaute Railroad, slshed Dy
" u Tilford, president of the Board OF Dree'ors'
m, circular made grave charges against the former
,aesn,ent and H. l. Nicholas & Co. the Stock
rxchange firm which failed IN the cr'ss VI i"S'
I,,v Its statements we're alarming as ~ '"e c'"-
a,,ion Of the company. and aroused rumors 'ha' d
racevership was imminent S'ochno'ue'' 'aiseS
,,orested in the company, however asserted mat
,here was no ground for these reports
nr,o Evansville and Terre Haute road formed the
i, mart of what Is generally known as Inc
,,ockev system, ID. J. Mackey having Deeh the
tine, spirit In It's affairs for years Inc lalinie
- II l. Nicholas & Co. last summer resulted IN d
trce Of control an element going in which was
osed n represent Standard OIL capitalists. Mr.
,,Lov resigned az president OF the company last
,,, and the vacancy still exists. W. H. Tiford
ono Of the new directors. became presideh' OF the
,,oard Of Directors. succeeding I. I. baiu"ih. MI
ru,ord now accuses Mr.. Baldwin or retaining
,,hout authority of the board moneys for services
Itch he asserted that he rendered More serious
,,,o,r are directed against the old manage
g. Including charges OF Illegal Interpretations
Trou the companys treasury TO the amount Oh
nsor,v 81 10000. The circular issued by W. H. III
,ord as president of the Board Oh Directors Is DIS
follows: -, .,. o..,.,,,oo
7, is deemed proper by the executive committee
.. ho,r1 that a report be made TO you or
a-,oiu conditions which were found TO exist by the
d,rec,ors elected by you October 49, lSS' ana wh'c"
have necessitated suspension OF uiV'uenus os !oi
comnanv H. l. Nicholas & Co, when hrm Ia'ieu
July g. 1898 had prior 10 such ore the the
senior member of the firm being also menioer ~
S your deposited with Nicholas Co bonds Of
a par value of $iopc. and OF a cost value OF ap,
-, 90 the entire proceeds OF such hypothecation
sem to nave been diverted from the treasury of
Your company. a suit has been instituted by your
present board against Nicholas 4 Co. for SlOUv
company other bonds OF par value OF s2s2 80 ana
OF a value TO your company OF Sl@C ihese p9Hu ,
have been hyIo;hecGtcd or otherwise disposed or
and no evidence can be- found that any part or me
proceeds ever returned TO your COMPANY, An
legal proceedings viii be taken against those ,T RE
sponsbe for the custody OF the bonds IN np'
bin against your company for special services ana
ZION was not authorized by the board and your com
pany therefore. has claim for the amount II was
decatur and Evansville Railway Company aggre-
eating sis2 Geo. and while some security was taken
~ YOUR conpany 1t is believed that these advances
W were not i.ade in accordance with law but In
taken from your treasury Illegally. as II Is believed
and as some of those who should be held responsi-
HE are supposed be insovent. the inevitable re-
suit mus, be a large loss 10 your company. me
coupanys affairs now being properly anu
economically administered and the net earnings. IN
excess OF fixed charges applied 10 the reduction OF
the Indebtedness OF the company. This indebted
ness was reduced to extent by the proceeds
from the recent of stock but on the first OF
the present year II still amounted to SSsO IN add
ton 10 outstanding equipment notes agSregat'ng
$4,000.
In regard 10 these changes II. I. Nicholas & Co
late yesterday issued the following reply:
We have seen the circular issued by President
Tnford Of the Evansville and Terre Haute Rail
road. SO far II refers 10 us IL Is false ana I'M
true We cannot try lawsuits IN the news
papers and therefore must decline TO make any
extended statement for the public. The statement
Is evidently intended to make US the scapegoas Tor
others. This is unjust and in due time VIII be
corrected. At the present moment We nave IN
hand securities of the Mackey system. with which
we have had dealings valued al S2y2.VD. against
which we have advanced S2S5.00
This statement Of Mr.. Tilforl is probably &C
tuated BY d!sappon tment through not acquiring the
watereG stock recently issued, and the failure to
force OIL, other stocks in loans so as TO enable Mr..
Tilford and his associates TO acquire majority con-
troll Of the stock at low prices at the expense Of
ourselves and creditors.