New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-02
Coupon Agreement Open
" Violated. Says Direc-
tor o. Texas Railroad.
COMPANY BULLIED
PY OWN OFFICIALS
Foreign Corporation Charge De-
MED - Plaintiffs, Including
Mrs. Shepard, Reject Answer.

Further details OF the troubles be
tween George j. Gould and the Texas
& Pacific Railroad Company. the preS'-
6crcv Of which he has refused to re
sign. were furnished yesterday by Hen
nv +. Cooper, director opposed 10 'ne
Gould management.
Cooper will ask the Supreme court
today TO compel Gould and his hio'h
.rs Edwin and Howard. and his sister
Mrs. Finley J. Shepard. TO accent 'he
answer no has made in suit brought
~, tho Goulds. and which the Gould'
have rejected. Cooper alleges 'ha'
George Gould turned over TO 'he com.
many coupons which had no value ana
ON which he expected the company 20
pay interest.
Gamer is one o. a subcommittee OF
directors appointed TO defend the SUIT
This committee IS not favorable 20 'he
Gould control, and in refusing 70 &C
rent the answer to the suit counsel ior
the Goulds said that the answer was
not verified by the proper ofhcers OF
Tho company. Il is pointed out that
besides George J. Gould being pres'-
dent Kingdom Gould is vice-president'
so that il would hardly do TO have one
OF these. with interests adverse 10 inc
defendant, verify the answer
The Goulds are suing TO recover
& TAI 600 with interest from December
1918. on thirty-iive promissory notes
on March /. 1914. the Texas d Pacihcc
company. 70 raise money. executed
these notes 10 the St. Louis. iron
Mountain & Southern Railroad, For
valuable consideration. Il is allegeu.
tho plaintiffs became the holders OF
these notes. which were indorsed Vy
mo s.. Louis. Iron Mountain & south
ern company. On the affidavit or EDWIN
Could that the Texas K Pacihc was
roreion corporation operating IN Lou
,siara Arkansas and Texas, the PLAIN
tiFs obtained all attachment on when
The Sheriff took charge Of the notes
Cooper. in his answer for the com
rany. says that The company mas us
main offices in New York and not IN
Dallas. as alleged. He also denies the
claims Of the Goulds.
in 1856. Cooper says, the leNas
Pacific company issued S2i,so rOVO III
81 600 bonds. payable IN the year ZOUo
at . per cent interest The bonds were
issued with the understanding that tne
interest would be payable only 70 inc
extent that the company net income
permitted and was not 10 be cumulative.
II. for instance. there were no net earn
ings for a certain year, the coupons 10,
that year would be Of no value. Al
The bonds. with the exception OF Sl,3l9.-
600. were owned by the St Louis iron
Mountain g. Southern Railroad.
Cooper says that the Goulds were Tor
tho most part also directors or the
Texas q Pacific, and were large nolqeis
of the stock Of the company, besides
controlling its financial policy and that
of the St. Louis. Prior TO 1908. - u al
legged. the Goulds presented these bonds
10 the defendant company and required
the Texas & Pacific Company 20 give
promi.sory notes. with varying rates OF
interest. At the time there we're no
earnings or net income applicable for
Tho navme1t Of interest, "as all the
mites we're aware" Therefore the
coupons were void. Cooper says. and
the Goulds knew IT.
The notes in question referred 10 no
other consideration. and the Texas q
Pacific received none, except the Vold
coupons. Cooper asserts that he IS ig-
norant of the details under which me
Goulds obtained the notes from the ST.
Louis. and that, although they bring
the action as executors OF the estate OF
their father. Jay Gould. they are IN
dividually the parties at interest. Coun-
sci for the Goulds refused 10 accept the