The herald., 1896-11-17
The Basis of a Suit Against
AtChiSOn Receivers
FRISCO FORECLOSURE SALE
Sought to Be Set Aside by q Stock.
holder
California Jobbers Profit by Change in
Southern Pacific Rates From the
Atlantic Common Points.
Associated Press Special Wire

Associated Press Special Wire
ST. LOUIS, Nov. 16.-Dwight Braman
Of Boston, bondholder of the st. Louis
and San Francisco railway, filed an
equity bill in the United States circuit
court today. praying for the setting
aside of the foreclosure sale. The bill,
covering 320 printed pages, alleges con-
spiracy and fraud, not only in the con-
duct Of the Frisco receivership, but in
the purchase of the Fricso by the Atchi-
son system and its management by the
Atchison. Braman sues on behalf of
himself, as holder of $115,000 worth of
consolidated mortgage bonds of the st.
Louis and San Francisco Railway COM
pany, and all other holders of consolidat-
ed Fricso bonds.
The complaint names as defendants
the st. Louis and San Francisco railroad,
the defunct company, and the St. Louis
and San Francisco railroad, its success
sor, organized by the foreclosure pur-
chasers. He also names the Mercantile
Trust company, trustee under the con-
solidated bonds; Aldace F. Walker and
John j. McCook, receivers of the Frisco
and Atchison; Louis Fitzgerald, jr.; j.
Kennedy Tod, Benjamin P. Cheney, M.
M. Seligman, Charles Gleed, James A,
Blair. Sigmund Alsberg, Samuel C.
Eastman, members Of the reorganiza-
tion company. Mr.. Braman in his pray
er petitions the circuit court to declare
the foreclosure sale Of the Frisco assets
to be null and void; to enjoin the officers
of the st. Louis and San Francisco rail-
frny ,t,nxv 1t, -
for the st. Louis and San Francisco rail-
the property, and to appoint receivers
road. He says, in order to induce United
States Judge Caldwell to sign the de-
cree of foreclosure Of the Frisco, which
he did last April, the defendants con-
spired to make false representations and
reports to Judge Caldwell.
Not only was business diverted to the
Atchison and debts put on the Frisco,
but. Mr.. Braman declares. a fictitious
Indebtedness of the Frisco to the Atch-
amounted to $S.26S,059.
In the meantime, the plaintiff declared.
the credit Of the Atchison was falling,
and the company was known to its off,
GERS and to officers of the Frisco to be in
solvent long before the receivership pro-
ceedings were instituted.
In order to conceal their mismanage-
ment of the Frisco, and to further in
crease their hold upon that property, the
officers of the Atchison, it is alleged, de-
vised scheme to get hold of the first
and second preferred stocks Of the Fris-
CO. They succeeded by giving holders
of preferred stock consolidated bonds
by way of exchange.
He also prays the court to call upon
the defendants to make an account Of
their stewardship of the property
In support of his prayer. Mr.. Braman
recites the history of the Frisco in con-
nection with the Atchison. He says
that in order to induce United States
Judge Henry c. Caldwell to sign the de-
cree of foreclosure of the Frisco, which
he did last April. the defendants-
namely. the receivers, the Mercantile
Trust company and the members of the
reorganization committee-conspired to