The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-06-28

4 T the last annual election by the
IN stockholders Of the Central Pacific
n Railroad Company it was stated that
more than 90 per cent of the share
holders Of the road were committed TO
the readjustment scheme conceived by
MIR. Huntington. the purpose of which Is
the absorption of the Central Pacific by
the Southern Pacific Company. In the
carrying forward of this scheme Mr..
HuntingtOns cO-workers are the Spcyers.
q stock and bond dealing firm of London
and New York.
The basis of the readjustment plan is
10 increase the bonded debt of the Cen
trai Pacific Company from about s116,0OO,-
GOO to something over $4,000 300; TO trans
fer the various sinking funds of the Can
trial Pacific, amounting 10 many millions
CT dollars. to the Southern Pacific Com
pany, and 10 substitute the stock of the
Kentucky incorporation for that Of the
Central. the holders of which stock are
10 pay 81 per share for the privilege of
exchanging the stock.
Central Pacific stock, the face value of
which approXimates $4,000 900. is in the
hands of people residing mostly in Eng
land, who object to Mr.. Huntngton's re
adjustment plan and are determined to
test the legality of the proposition. To
this end J. NJ. Bassett of Oakland, the
local agent and attorney in fact of the
contestants, yesterday, through his at
torneys, Galpin & Bolton and Francis
Pope, filed q bill in equity in which Mr..
Walter Morshead Of London is named as
plaintiff in the United States Circuit
Court TO restrain the Central Pacific
board of directors from taking sucn
measures as will assist in the COnsum-
NATION of the scheme for passing the
Central Pacifc into. the NAV of the
interest
mortgages if issued or made
II is also mentioned that Mr.. Hunting
ton and the SpeyerS are cO-Operated with
by. the Banbury committee OF London.
which is a creature of the parties just
named and which claims to hold the
proxies for a larger number of shares
The plaintiff, Walter MOrShead, sets out
that he is an alien. a resident of London
and brings his suit against the Central
Pacific Railroad Company on behalf of
himself as owner of 240 shares of stock,
and others who may hereafter join. That
he owned the stock for several years; that
in June. 1861, Coils p. Huntington. Leland
Stanford, Mark Hopkins and Charles
Croker organized the Central Pacific
Railroad Company with a capital Of S.
100000, and then formed a ring within the
corporation 10 make for their joint and
equal benefit all possible gains and profits
out OF the business and assets of the cor
poration without regard TO the other
stockholders built the road and appro-
priated all the stock and bonds to their
own use; they elected the directors and
had the control of all the boards of d.
TectOrs down to the present time. Having
this control they made contracts with
themselves. being joint partners in the
firm Of Charles Crocker & Co This firm
took the contracts to build railroads. To
carry this scheme through they also or
gained the Contract and Finance Com
pany. to which Croker 81 Co. turned over
all their profits on building the railroads
and after that the Western Development
Company, to which the Contract and
Finance Company assigned ali the profits
the various contracts with different roads
and in turn the Western Development
Company turned over all it's business and
assets TO the Pacific Improvement Com
pany. That Stanford, Crocker. Hopkins
and Huntington owned equally in the
Charles Crocker &, Co. firm, Contract and
Finance Company, Western Development