The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-12-09
Wants TO SUE'EM
Frisco St0ckholder Ask
Permission of the Court
To Bring Action Against Off
cials Of the Road.

st, Louis, Dec. 0-William Niles OF
New York, owner Of 600 shares Of stock
in the st. Louis & San Francisco rail-
way, has asked the federal district
court for permission to bring restitu-
ton suits against present and former
officials Of the Frisco.
The petition embodyfng the request
charges that b. F. Yoakum, former
chairman Of the board of directors Of
the Frisco; James Campbell. former
vice president Of the road and head
Of the North American company which
brought the receivership suit. Thomas
H. West, chairman Of the board Of di-
rectors of the st. Louis Union Trust
company, whose resignation as receiver
was accepted yesterday. the late Ed
win Hawley and w. K. Bixby, now re-
ceivers Of the Wabash, made individual
profits aggregating s., ,975, ,0CO by selling
to the Frisco short lines they and other
syndicate subscribers promoted and
built.
Tho petition charges that the men
named, by acting both as buyer and
seller. violated their obligations to the
stockholders of the Frisco, and there
fore are personally liable to the stock
holders for the losses suffered by the
Frisco. Niles is not privileged to file
suit against the individuals named
without the consent Of the court as
the Frisco now is in receivership.
Before fling the petition. Miles OBJ
tained q transcript OF the testimony
taken here a few weeks ago before
Interstate Commerce Commissioner
Clark. who Investigated the Frisco re-
ceivership at the direction Of congress
MT. Niles in his petition gives con-
siderable attention to the sale Of the
st. Louis. Brownville & Mexico to
the Frisco. At the time of the sale
q GVyfJ In - -
charges, Yoakum was chairman of the
Frisco board Of directors, Campbell
was vice president of the Frisco and
West. Hawley and Bixby were direc-
tors. Niles charge that through their
influence over other directors and for
the purpose T furthering their private
schemes they caused the Frisco to buv
the Brownsville at a price greatly in
excess of its value.
He also cites the sale Of the New
Iberia & Northern railway In I,ouisi-
ana to the Frisco-a sale which he
charges netted Bixby, West and Yoak-
um a profit of 100000. He also
charged that certain directors of the
Frisco, whom Niles does not name,
made 100000 by promoting building
and selling to the Frisco the St. Louis.
Oklahoma & Southern.
Mr. Niles states that Frisco securi-
ties were SOLD below par. creating an
indeotedness Tor which the road is
liable. This Indebtedness with the
syndicate profits. he charges, aggre-
gates $40,O00,O00. This Indebtedness.
he claims. was incurred in a careless
manner: and therefore the directors
responsible have become personally
liable to the Frisco for all resuItine
losses. Niles in his petition Charges
the bill OF complaint. which resulted in
the appointment Of receiver was filed
collusively and without the knowledge
and consent Of stockholders and bond
holders. The purpose Of the collusion.
1t Is charged. was to secure the APP
pointment Of receivers friendly to tine
interests Of James Campbell, Thomas
H. West, b. r. Yoakum and w. X.
Bixby.