Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1894-09-27
PLAIN LANGUAGE

Used by Attorneys in q Suit to Recover from
Stevenson Burke and Others Twelve Mil
lion Dollars Principal Proceeds Alleged
to Have Been Embezzled from the Co
lumbus, Hooking Valley s. Toledo, and In
terest.
COLUMBUS. o.. Sept. 21.-The great
suit of the Central Trust Co. of New
York for the bondholders of the CO.
lumbus, Hooking Valley Toledo
Railroad Co.. against Stevenson Burke
ct al, to recover S12,000,O00 principal
proceeds which are alleged to have
been embezzled, and interest, will be
submitted to .he court to-day. Judge
Burke. for the defense. will begin his
closing argument this morning. 1t
is expected that he will use
vigorous language. The attorneys
for the trust company have been
using very plain words in referring to
the transaction out of which the suit
grows, and eX-Gov. Foraker and
Henry j. Booth, who spoke yesterday,
We're particularly severe upon him.
Mr.. Foraker made the additional law
point against the ''conspirators," as he
called Burke and his associates, that
the new company, which issued these
bonds, was organized after they had
and as such it was party to the
conspiracy. Referring to the decision
of the arbitrators, who decided in
Burke's favor, he said that the deci-
sion was not sustained by any reputa-
bic attorney in the United States.
That it was a finality in that case
under the agreement was quite plain,
but it could not be taken as a prece-
dent for any court of equity to follow
The opinion displayed great deal
of ingenuity in manufacturing a de-
Tense of false position. The arbitra-
tors themselves held that the issue of
bonds was a continuing trust and vet
said the defendants did not act as
trustees. On this point the bar of the
county disagreed with them and held
that the arbitrators, like other great
men, for once had made mistake.
The speaker replied to Judge Burke's
citation in a case where a prospectus
said one thing and the mortgage an
other, and in his caustic remarks
stirred up Judge Burke so that he had
to interject disclaimer.
Gov. Foraker said: rs it law or
honesty, equity or justice, to borrow
money on sacred trust and then con-
vert it to ones own private end? Could
a man borrow money on a vacant lot,
giving mortgage thereon, in which
1t was stated that the money should be
used to erect a house and improve the
security, and in the face of this writ
ten contract pocket the money, fail to
build the house for four years, and then
set up the statute of limitations against
the r,rOSapy1fi0n for hn Sfaa1o nd
this is what the defendants sought to
do.
The speaker next entered upon a de-
Tense of the New York courts, whose
integrity, he said, had been impugned
by Judge Burke and his argument.
Judge Burke here interrupted Mr..
Foraker, and denied that in his argu-
ment he had impugned the integrity
of the New York court, or had any
such intention.
Foraker then said that the decision
of that court, whether right or wrong,
must be accepted as an honest one,
even though against Burke. Three
courts had decided the issues raised in
the case. while Burke was leaning
upon the finding of the arbitrators
alone, learned in their profession and
honorable men, but only human and
liable to err.
Gov. Foraker said that if he had ar
gued to any purpose, he had shown
that it was a continuing trust. which
had never been renowned by anyone,
not even by Burke himself until he
filed his answer in the Belden case in
1890, and less than four years ago when
Burke claims the statute of limita-
ton began to run. Mr.. Foraker said
Burke claimed that the Hooking Valley
railroad was able to pay these bonds,
but the speaker maintained that this |
did not relieve Mr.. Burke or right the |
wrong which he and his associates or
co-conspirators had committed through |
deceit and fraud practiced upon the |
bondholders, who advanced the money |
on the good bonds.
Mr.. Booth, following the ex-gov-
'ernor. was emphatic in his denuncia-
tion of modern methods of financial |
railway wrecking, which was running
fortunes at home and running Amer
lean securities down lower and lower
each year in foreign markets. He
called the transaction in question
in this case stealing" and pitied
VI uuSe buTke UndG all tnS defense ne
could make was that he had been
cured of it in one court, and that
ought to suffice. 1t was a case of mis-
genius, he said, this skill
full plundering of other peoples prop
erty through peculiar laws of corpora
tions. The courts ought to brush |
aside the fiimsy veil of tech
nica!ities behind which these scoun-
dreIs We're accustomed to find refuge |
and drag them forth to justice. 1t was |
high time this was done. The capital |
list of all civilized nations were watch |
ing she outcome of this suit, the first |
attempt to have the courts protect the |
interests of innocent investors, and /
compel those who have robbed them to |
restore what they have taken.
Fatal Accident on the Illinois Central.
New ORLEANS, Sept. 21.-An accident
occurred on the Illinois Central rail-
road at McEwen & Murray's sawmill.
A switch engine was derailed, and
Switchman Edward Scully was fatally
hurt and j. j. Duffy had leg broken,
and an unknown negro was also badly
hurt.