New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-23
frisco RECEIVERS
qIE FOR Sl4,4OS,92l
-, Ten Former Directors
~ Return Sum Paid for
Brownsville Road.
,o.KIJM ACTED BOTH
BUYER AND SELLER
.-.os<ible 10 Recover Another
eos 600. 900 Liability Saddled
on Stockholders.

,,e Jan Suit 500 recover
,r MS hiod I'M the United states
-. Court here to-day against ten
an, we're directors OF the st. LOUIS
r.-arc.sco Railroad in 1910 or
a I'm y.s,assi is for the deficit IN the
..,-uo roads earnings paid by the
49,. and S-s.oee.l-7 IS for tho sum the
-. succe was paid 10 tho 81. Louis
~. trust company IS manager for the
.-..nsy.lie syndicate.
~. .ult vas filed by attorneys repre-
she receivers and the action was
-, in accordance with recent In
..,o,s of Walter a. Sauborn. circuit
-, before whom the rcceivership pro
.s',es were brought in May.
i, Ten men named in the suit arc
r yoskum. chairman Of The Frisco
.....,rste al She time OF the receiver
lanes Campbell president of the
- American COMPANY which
..-,t the receivership suit. William i.
- NOW a receiver Of the Wabash.
NJ u1lsrd. former vice-president or
frisco. b J.. Winchol. former pres
!. ~ the Frisco, T. Y. r. Thayer'
: GREG Frank Trumbull. Thomas IL.
r,r chairman Of the board Of directors
~. S. Louis Union Trust Company
!, Hans Wintcrlcldt
Acted as Buyers and Sellers.
.. ,stition SAYS that the men were
.,..o-s Of tho Frisco from DccemoeT
~ 10 June g. 1910. and that within
:. time the s. Louis. Brownsville x
go Railroad was sold 10 the Frisco
n, syndicate that promoted IT, and
=, the purchase was void, being ultra
"a The receivers charge that Yoakum'
= and Campbell acted both as buy
,,d sellers I'm the Brownsville deal 10
u, Individual profit and in disregard
~. -iehts OF the Frisco stockholders.
nor 10 the adoption Of the Browns
=. purchase resolution by the directors
!. CHARGED. no meeting Of Frisco
,.,.soiders was called The Browns
=, rs-chase IS void. It is claimed, be
"a. the written consent OF the majority
sns stock 10 the purchase had not been
- Win the Missouri Secretary Of state
. n. laws Of the state require.
~ pstition outlines the deals Of the
lr,eo With the New Orleans, Texas &
y.5,o Railway. a subsidiary. This road,
sad. nov constitutes a S26,coA"
auy against the Frisco, for the
s--t system advanced TO the New Or
"a road such cash and securities that
e Nav Il. 1910 the New orleans was
,,,ie5 $4,000 10 the Frisco. The
~.rsrs said that in their Judgment the
m Orleans road was then and now Is
Shsat
New Orleans Lire lnsolvent.
S.sriues have been so transferred. the
,.s5srs say. that q lien has been Gre
~ sEalnst the stock. bonds and securi-
=. O.: tie Brownsville in favor Of the
rsss Of the Frisco bonds that are Sc
-.8 BY the mortgage on the New Or
a,s line. For this reason. the receivers
i,g. II IS impossible for them 70 re-
So the Brownsville securities. and as
Z. New Orleans line is insolvent It is
-,ossible for the Frisco receivers 10
/ n-psl the New Orleans company 20 &C
SIT for the Brownsville securities.
/ Re receivers ask that the court order
accounting Of all LOSSES and dam
- resulting 10 the Frisco by the al
nd misconduct Of directors. and that
r-snsnt be given for the entire pur-
.ss price Of the Brownsville. with In
sssi
hg.fs were served on Mr.. Yoakum and
n Gftg this afternoon.