The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-12-27
liver for ST. Louis & San
.ncisco Railroad Direct
4 to Bring Action by
Judge Sanborn.
5TTON OF NILES
IS DENIED BY COURT

XStbVI0 va AssSSaN SAhS NoAaA"
INV Will Have to Prove
. Hands Are Clean.
4 LOUIS, Dec. 26.-Receivers OF
"a Louis d San Francisco railroad
directed today by Circuit Judge
nm in the United States district
4 10 bring restitution suits against
and former directors of the
a.
order of the court is qualified
3 proyiso that suits only shall he
fht il the special counsel appointed
believe that they can be success.
naintained.
q the special counsel will be con.
a OF the success of such suits is
'ally agreed, as the attorneys are
nen who represented William w.
|of New YORK, Frisco stockholder,
D petition for permission to bring
|1fion suit. The suits are to be
+ % the sale to the Frisco of feed,
1E5 that were promoted by syndi~
i Of which certain Frisco officials
Members.
order Of the court today was
Ed-it denied the application OF
|lles Tor permission TO file suit and
I'd the receivers to file the suit,
~ counsel thought the action
t be maintained.
bel Appointed.
fonrt appointed as special coun.
the receivers John ID. johnson
[oomis Johnson, who were attor.
ior Niles. These attorneys were
exclusive charge of the suits,
Whereby were taken from the jur-
||on Of W. +. Evans, general coun-
y the Frisco railroad and Of Hen
|Priest, counsel for the receivers.
Pfneys for Niles had argued that
trelyers were not the proper per
q bring suit because two Of them
'E. Nixon and ". B, Biddle-had
|elossly associated in Frisco at
With those whom 1T was desired
Sslborn ruled against this point
'eld That the receivers were the
persons to bring suit. However,
'fed exclusive control Of the suit
|nes w. Lusk, chairman Of the re-
r1 who was appointed receiver less
= month ago, Mr.. Lusk, who lives
Paul, had previously had no of
connection with the Frisco.
'ge sanborn in his decision was
y to make plain that he had
no opinion as TO the justice of
Alegations against former officials
+ railroad.
3 to Be Presented.
le transactions of which complaint
qe, says the decision, arc so
and complicated and the rights
|holllties of the parties concerned
'naihcned by so many facts and
'us'suces, that the court cannot
end ought not TO form, any oplD~
Pneernlng these rights or the liza,
OF any party until each of the
: IN interest has had an
amiy TO present the facts
'aich he relies and to be
on the claims Of the parties
.,ted' and no such opinion has been
or IS intimated by the decision
Pc petitions. -
'pe consideration of the facts
4 lh The petitions has convinced us
ee court can permit or conduct no
agetion so fair to all parties as
rn'ch Will result from the institu-
snlt or suits against the of
against whom complaint is made,
d IN that way only can every
~ interest, whether he be cred
,'ockholder or defendant, present
equrt every fact material to the
efoss'e3amine the witnesses Of
fsnent, have full and fair hear.
NJ 10 tne end secure a conclusive
les to Suit.
s'sihg whether the suit should be
ny an individual stockholder or
feeeiv,ers; Judge Sanboru said +:
iegal INJURY was to the Frisco
~ anu the cause of action ac-
anat company before the re-
we're appointed.
~" lney were appointed, that
II. action was transferred TO and
H. ahe receivers. 1t is their duty
~ seis to enforce all Just causes
rn cunning TO them from the Fris-
tn', 10 collect all moneys due to
- ~ apply the moneys thus col
.rd uso TO tho payment of its cred
oiss aa second to the benefit of it's
'atLfs' .L and, as the company is in.
.ne interest Of the creditors is
N'er than that Of the stock,
81, ',s y, cause they (the receivers)
y, mat single suit bv them will
nd ior al and may prevent many
sS;suits suits by different Stockholders
S'ors for the same cause
" inc appointment Of special
or'ng the suit on behalf OF
"A d'srs, Judge Sanborn said tho
snol su't is so important and re.
s ss Preparations that special
aadepeendent OF the counsel for
ma .is. VINO can devote the reduI.
n sd shd attention to the investi
.osesn. sue iacts and the preparation
uisd id'auon Of the suit ought to be
10 take exclusive charge OF
Road Sued.
EsrIELp. Mo-. Dec. ss.-sui,
nc IT. Louis A. Son E-.rc,.ol