New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-25
SUES HUNTINGTON ESTATE
n L CITING REEVES THE OLD
CHARGES OF FRAUD AGAINST CEN
TRIAL PACIFIC TRUSTEES.

The early history Of the Central Pacific Rail
road Company Of California was recalled yester-
dav by an action for $100.Oo0,OOo. brought by
Robert L. Cutting. of No. II Park Row. in be-
half Of minority stockholders OF that corpora
ton. against Charles H. Tweed, Isaac E. Gates
and Mrs. Coils P. Huntington, the executors Of
the estate Of Coils P. Huntington.
The case came up yesterday before Surrogate
Fitzgerald on an order to show why the
executors Of Mr.. Huntington's estate should not
make an accounting with an inventory of the
Central Pacific stock belonging to the estate
An order was signed by Surrogate Fitzgerald,
and the case viii be argued before Surrogate
Thompson December ,. The bill OF the minority
stockholders also asks that an accounting be
made Of the profits made by Mr.. Huntington
while he was trustee of the Central Pacific and
further desires an injunction restraining the
executors Of his estate from disposing of any
property or assets until the amount owed to
the Central Pacific Railroad Company Of Cali
fornia has been ascertained.
Besides this suit. there is TO be another, said
Mr. Cutting against the Southern Pacific Rail-
road. TO enjoin it from issuing SS.oO0oo0 Of
per cent collateral bonds, the remainder of an
authorized issue Of $2G,G00.O0O based on pre-
ferred stock OF the Central Pacific Railroad
Company Of Utah. Then. according to Mr.. Cut
ting, the process by which the Central Pacific
Railroad of Utah succeeded the original COM
pany of California is TO be questioned in suit
10 be brought in California on the ground that
law passed by the California legislature in 1899,
authorizing such transfer as was made,
illegal.
The suit brought by MI Cutting for the mi
nority stockholders is in the name Of Walter
Morehead a lawyer Of London. England, and
charges fraud against the late Coils P. Hunt
ington. Mr.. Cutting said yesterday in support
Of his case:
together with Leland Stanford. Charles Croker
and Mark Hopkins, organized companies for con-
struction for Improvement, for carrying on the
express business and for supplying the road
with coal. and made contracts with these com
panies which gave them about everything the
Central Pacific possessed. To these companies
he turned over $50. 000. 600 worth Of government
bonds loaned by the United States and prac-
tically all the securities of the company, an
amount Of about S163 100000 in all As ap-
States Government 10 find out what became OF
SITS bonds. the work done by these favored com
panies amounted to only about S60,O00,oDO- Now
my clients allege that these acts and the subse-
duent transfers of stock to the Utah company
and to the Southern Pacific show fraud which
continued UP TO the time Of Mr.. Huntington's
death in 1900 Nv clients are mainly residents
Of England who were kept in the dark about
1he real state Of affairs. Later we may sue the
estates of some of the others concerned
Neither the trustees nor their lawyer, Max
We'll Evarts, would discuss the suit yesterday.
Charles H. Tweed, regarding the suit brought
FOR Walter Morehead against the Coils p
Huntington estate, said yesterday:
There is absolutely nothing to it, Mr. More
head is a holder Of one hundred shares Of Cen
trial Pacific stock. and this IS simply one of the
several suits which have been instituted since
the readjustnlent Of the roads affairs in 1899.