The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1914-01-23
SUIT BROUGHT
BY RECEIVERS
OF THE FRISCO.
Former Directors of Railroad
Asked to Return $14,4OS,-
921 Said to Have Been
Wrongfully Acquired.
ACTION is BASED ON
BROWNSVILLE DEAL
Charge Made That B. F. Yoa-
kum, T. II. West and James
Campbell Acted Both as
Buyers and Sellers.

ST LOUIS, Mo-, Jan. 22.-Suit TO re-
cover more than Sl4,000,000 was filed
in the United States district court
here today against ten men who were
directors of the st. Louis & San Fran
cisco railroad in 1910.
The suit was filed by an attorney
representing the receivers and the ac-
ton was brought in accordance with
recent instructions of Circuit Judge
Walter ii. Sanborn, before whom the
receivership proceedings were brought.
The ten mon named in the suit are
B. F. Yoakum, chairman of the Frisco
directorate at the time of the receiver.
ship; james Campbell, president of the
North American company, which
brought the receivership suit; William
K. Bixby, now a receiver of the Wa
bash; c. ". Hillard, former vice presi.
dent of the Frisco; B. L. Winchell, for
mer president of the Frisco; f.. V. r.
Thayer, a. S, Greg, Frank Trumbull,
Thomas II. West. chairman OF the
board OF directors of the ST Louis
Union Trust company, and Hans Win
terfeldt.
The petition says the men named
were directors of the Frisco from De-
cember l, 1909, to June l, 1910, and
that during that time the ST. Louis,
Brownsville g. Mexico railroad was sold
to the Frisco.
Brownsville Deal the Basis.
The suit is based on the Brownsville
deal, details of which were disclosed
during the recent interstate commerce
commission investigation of the Frisco
receivership
OF the Sl4,f0S,92l for which the re.
ceivers filed suit, Sl,309, ,494 is for the
deficit in Brownsville earnings paid by
the Frisco and S13,o99,427 is for the
sum the receivers claim was paid to
the ST. Louis Union Trust company as
manager for the Brownsville syndicate.
The receivers charge :aat Mr.. Yoa
KUN, Mr.. West and Mr.. Campbell acted
both as buyers and sellers in the
Brownsville deal to their individual
profit and IN disregard of the rights
of the Frisco stockholders.
Mr., West was elected director Of the
Frisco after the Brownsville purchase
was authorized, but it is charged he
thereafter acquiesced in and authorized
the payment of Frisco money in the
deal.
Claim Purchase Is Void.
Prior TO the adoption of the Browns
Vile purchase resolution by the di
rector5, it is charged, no meeting of
Frisco stockholders was called. The
claimed, because the written consent
Of the majority of the stock to the
purchase had not been filed with the
Missouri secretary of state. as the laws
Of this state require.
The petition outlines the deals of he
Frisco with the New Orleans, Texas &
Mexico railroad, subsidiary. This
road. it is stated, now constitutes
$50 900, 900 liability against the Frisco,
for the parent system advanced TO the
New Orleans road such cash and Sc
curities that on May II. 1910, the New
Orleans was indebted S26,000,000 to the
Frisco The receivers say that in their
Judgment the New Orleans road then
was and now is insolvcnt.
Securities have been 80 transferred,
the receivers say, that lien has been
created against the stock, bonds and
securities of the Brownsville in favor
Of the holders of the Frisco bonds that
are secured by the mortgage on the
New Orleans line. For this reason, the
receivers claim. it is impossible for
them TO recover the Brownsville Sc
curities and ms the New Orleans line
is insolvent, il is impossible for the
Frisco receivers to compel the New Or
leans company TO account for the
Brownsville securities.
Payments Set Forth.
The payment by the Frisco TO the
ST. Louis Union Trust company, on ac-
count of the Brownsville deal are set
forth in round numbers Us follows:
Nav 26, 1910, s5,400,000; June "a,
1910, s1.657,0 June 81, 1910.
s.. 600, 900
Credit allowed for st. Louis,
Brownsville & Mexico equipment notes,
payment assumed. $105,000.
Credit allowed. . per cent on alu.-
o56. 900 first mortgage bonds of ST.
Louis. Brownsville & Mexico. S51e, 900.
Credit allowed, } per cent on $4o0,'
900 of first mortgage bonds OF St.
Louis. Brownsville & Mexico railroad
company. 500, 1000.
June, 1910. balance of purchase price
paid for with $4,000 ,096.+l par value
(Continued on Page seven-)'