The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-01-23
SUE TO RECOVER
$l4,OOO,OOO
ACTION BROUGHT AGAINST
DIRECTORS of ST. L.
4 :. r. X. X.
Petition Makes Serious Allega.
tiOns Bordering on
Criminality.

ST. LOUIS. Jan. 22-Suit 10 re-
cover more than fourteen million dol
lars was filed In the United States dis
tric. court here today against ten
men who were directors OF the st.
1910.
The suit was filed by attorneys rep
resentinS the receivers and the ac-
tlon WIS brought in accordance with
2 recent instruction OF Walter = San
born. circuit Judge. before whom the
Teceivership proceedings were brought
last May
The ten men named in the suit are
II, r. Noakum. Chairman OF the Frisco
directorate at the time OF the receiver.
ship; james \. Campbell. president
or the North American company.
"hlch brought the receivership suit. (.
William X. BiNby. now receiver
or the Wabash; G. W. Hilliard. former
vice president OF the Frisco: B. l..
Minchell, former president OF the
frisco +. V: r. Thayer. \. :. Grieg.
FRANK Trumbull.. Thomas H. West.
chairman OF the board OF directors OF
the 81. Louis Union Trust company.
and Hans Winterteldt
Were Directors.
lhe petition says that the men
We're directors Of the Frisco from De-
cember. 1909. TO June /, 1910. and
mat within tat time the ST. Louis.
BroMnsViile aud Mexico railroad was
sold To the Frisco. Details OF the
ueal We're disclosed during the recent
interstate commerce commission in.
NestlSation OF the Frisco recCiVershiD.
Inc petition charges that the de-
PENDANTS unlawfully, carelessly. and
ne sileently caused the Frisco TO paw
OUT Sl1,iOS.92l without receiving
hythlnS OF value in exchange ami
that without lawful AUTHORITY they
caused large debt 10 be created
against the Frisco company.
vi the Slf.4OS.9: for which the re-
celvers filed suit 81 1.309,494 is for the
dehicit IN Brownsville earnings raid
ny the Frisco and S13. 3.O99.427 is for
.ne sum the receivers claim was paid
10 the st. Louis Union Trust company
dicate
The receivers charge that Mr..
1oakum, Mr.. West and Mr.. CampbelI
acted as both buyers and sellers in
the brownsville deal TO their indi-
Nldual profit and in disregard of the
rights of the Frisco stockholders
No Meeting Of Stockholders.
Prlor TO the adoption OF the Browns
vile purchase resolution by the di-
rectors, II is charged, no meeting OF
frisco stockholders was called. The
brownsville purchase is void. IL Is
OF the majority OF the stock TO the
purchase had not been filed with the
Missouri secretary OF state as the laws
OF the state require
The petition outlines the deals OF
lhe Frisco with the New Orleans
Texas and Mexico railroad. a subsi.
diary. This road. IL Is stated. now
constitutes $3.50 900 liability
against the Frisco for the parent sVs.
TEN advanced To the New Orleans road
such cash and securities that on Nav
Ia. 1910. the New Orleans WAS in.
debted S26.000.0OO to the Frisco. The
receivers said that in their Judgment
the New Orleans road then was and
now is insolvent.
Securities have been so transferred
the receivers say that a lien has been
created against the stock. bonds and
securities OF the Brownsville i'm favor
OF the holders OF the Frisco bond
that are secured by tho mortgage ON
the New Orlenas line. For this rea.
son the receiver claims. II is hnpossi.
bic for them to recover the Browns.
vile securities and as the New or.
leans line is insolvent. IL Is impossi.
Bile for the Frisco receivers to compel
the New Orleans company to account
for the Brownsville securities.