The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-05
y & M. Y, BONDS SAID
TO Be FRAUDULENT
Vicksburg Stockholders of Road
Want Injunction
NEW YORK BANKS INVOLVED
Petitioners Set Forth That Earnings
Have Been WronguIly Diverted
and Ask for Full
Accounting.
NEW YORK BANKSlNVOLVED

jackson, Miss, January A sensa-
tional petition was filed in the Kinds
county chaneery court today by b. b.
Martin and w. B. Griffith of vicksburg
against the Yazoo City and Mississippi
Valley Railroad company, the Illinois
Central Railroad company, the Metropoli-
tan Trust company of New York and the
Union Trust company of New York. The
bill seeks to have declared fraudulent all
bonds issued by the Yazoo City and Miss
issippi Valley company since 1884. The
petitioners set up that the earnings of
the road have been wrongfully diverted,
and they ask for a full accounting of all
bonds and an injunction preventing the
defendants from disposing of these bonds.
Asserting that they are the owners of
stock certificates of the Yazoo and Miss
issippi Valley railroad with face value
of $4,000, income bonds of the Louisville,
New Orleans and Texas railroad. valued
at $4,000, and a half interest in similar
bonds for like amount, which are being
temporarily held by the chancery clerk,
and decreed to the incapable of dividends,
the compliments seek an accounting of
the bonds issued by the Louisville, New
Orleans and Texas railroad, now part
of the Yazoo and Mississippi valley system
and set forth in a transaction whereby the
former road was acquired by the latter.
WrongfuIIy Diverted.
The bill alleges that the earning of the
freight traffic of the Yazoo and Missss-
ippi Valley railroad to the extent of mill
lions of dollars have been wrogfully d.
Verted, and demand an accounting alleg-
ing further that the Yazoo and Mississippi
Valley has always been a profitable rail-
road; that complainants are entitled to
have cancelled all bonds and obligations
in excess of the amount authorized in
the mortgages of 1884 and 1885, issued to
secure income bonds cancelled and set
aside since no holders of stock have as
sented to the issuance of any other bonds
or execution of any other mortgages.
1t also demands that the defendants be
required TO state what bonds of the
Louisville, New Orleans and Texas, and
the Yazoo and Mississippi Valley rail-
roads are now outstanding and for what
purpose issued; the authority for issu-
ance, how much of the stipulated annual
rental by the Illinois Central for the
lease of the line from Jackson to Parsons,
and from Durant to Lochula. Miss, has
been paid; how much realized by sale sof
lands covered by the mortgage of 1885
to secure income bonds; how many miles.
of branch road has been built and paid
for, and under what authority have the
earnings from the sale of the entire rail-
road been applied to pay interest on the
81 900 bonds, which were charged only
on that portion of the road owned by the
Yazoo and Mississippi Valley railroad
prior to the consolidation with the Louis
Vile, New Orleans and Texas roads.
Accounting Asked.
An accounting is asked regarding a
subsidy given to secure branch lines and
as to how many first mortgage bonds
were deposited with the United Trust
company under collateral trust, and what
amount of second mortgage bonds were
issued to cover interest in arrears