New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-04
RAILROAD INTERESTS.
KANSAS PACIFIC MEMORIAL.
DoNDHoLDERs WANT CONGRESS TO srhAiuhiH"
OFT THE AFFAIRS OF THE COMPANY

noNDuoLpERs WANT CONGRESS TO sTRAIGHTEN
OFT THE AFFAIRS OF THE COMPANY
wasb,nqton Aug. 3-The Kansas Pacific Consoii-
dated bondhoders committee have prepared me-
mortal to Congress for the passage OF Dill 10
tate and expedite legal proceedings py ''e ''
States and other creditors against Governnen
RAILWAYS their officers stockholders ana the trustees
OF their mortgages. 49,,
The memorial alleges that there was trust fund
for the security Of the bonihoders ana that 'ne'e
has baen nn,sappropraton Of the securities In that
fund II states that the memorialists nave oroush.
st against the estates OF Jay GOu'd ana fSus9S''
soca who were the trustees OF that fund. which
amounts with interest to more than snVo"o.
Accommodating the memorial is bill when pro-
vldes for the institution OF suits against the co"-
nan,es directors and stockholders OF the corporation
or their creditors for property obtained contrary 70
equity and particularly in respect OF the tolo"ihs
matters
Contracts for construction or equipment whether
made by hducierles In their own names or through
construction companies or other individuals ION
tracts for tire transfer Of bonds or stocks OF ots
railroads 10 the Government-alded compa MES. Hny
other contracts. any acts. whereby me 10
Of Government aided railway cohipa',, no 10 ,hese
ceived from them securities or pTobyfU other COM
panios. and which securities pe.ohReu W ~ aiied
died companies transferred 70 Government-slnrd
companies the securities or STOCKS OF o',e f aid
lions contrary to equity or any otner ac,s 81 81 81,
parties contrary 10 IN" equities OF 'du Co'pai,.
fha Attorney f"ncral Snhil HNeNiS'
suits AGAINST any former or present STOCKHOLDERS
who may be- liable by statute or otherwise TOT INC
debts OF the aforesaid corporationr
The bin provides that Other creditors OF Govern
rnont-alhd railroad companies may institute 81
prosecute the pending proceedings under TINS act,
and also that upon the maturity OF any or the bones
isq,vJ nv the United States 10 Government -aliei
railways the Attorney General shall institute com
un-laV actions for recovery thereon, ana me pro-
Visions Of this act shall apply 70 those proceedings
The bill further provides that In AL proceedings
Instituted under this act the DEFENDANTS may De
,.rved with process In part OF the mica stare
and that the court may appraisa the Yaiue 81 the
road and other property IN the hands Of the company
or receivers and after deductlng the amounts que
and 70 become due gags prior 10 me 'rpN,
ernn,ent liens the balance found shall be snbtractsi
from the judgments obtain ID against any $50, 49,
holders up0n their statutory liability. or from JUG
rnsrts obtained against directors upon their &C
rountabiilty But for the net sums coiectaDie on
said Judgment the United states shail have q
nrnferonce over all other creditors Of government
aided railroads against the estates OF judgment
debtors. 49, ... 50
The memorial and bin in printed form r''re re-
caivoI hv a number ~ members OF the House 70
dav and II was evidently the expectation OF IN
ers that m. data should be laid before C)neress
but 50 far as can be- learned none or those re-
ccivlng the pamphlet disposed 70 take this ae-
ton without being personally requested 10 90 So