New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-03-18
c. A. Peabody and David
Francis in Row Over In
terest on Refunding as.
LIES HEAD
ALLEGES NEGLECT
Ex-Governor of Missouri in Re-
ply Charges Former with
Being Discourteous.

Correspondence made public yester-
day between Charles A. Peabody, chair
man Of the Rock Issland 4 per cent re-
funding bondholders' committe. and ey-
Governor David r. Francis Of Missouri,
and with the Central Trust Company,
trustee for the mortgage covering the
bonds. disclosed a wide difference Of
opinion regarding the payment Of the
April interest. incidentally, Mr.
Francis accuses President Peabody Of
the Mutual Life Insurance Company
Of being discourteous.
In telegram under date OF March
s Mr. Peabody requested Mr.. Francis
10 give a reason for his appearance
at hearing IN Chicago before Judge
Carpenter on March which involved
questions Of "grsvest consequence" 10
the refunding bondholders. "lf your
meaning is that for any reason YOU
prefer that the Central Trust Company
shall act for both trustees, or as sole
acting trustee. or that the bondholders
must proceed 10 protect their rights in
their own names because Of the failure
Of one Of their trustees 20 do 30. /
think il fair 20 yourself and the bond
holders that you should specifically so
state" concluded Mr. Peabody's tele-
gram.
Mr.. Francis. who opposes the conten-
ton Of the Peabody committee that
foreclosure proceedings are necessary
for the reorganization Of the Rock
Island. after explaining that he had
arranged 20 meet the court on March
la r.
pressed surprise at recent request
Of counsel for the bondholders' commit
tee that the April 1 interest should be
defaulted lie charged that counsePs
position must have been Influenced by
a desire that the "holders OF the first
and refunding As become possessed Of
the property through d forced sale He
urged that the interest on the bonds
should be paid when due.
This reply is meant to he framed in
courteous terms" Mr.. Francis conclud-
ed. "but ! cannot feel that the same
sentiment inspired your telegram 10
me"
In his reply to this letter Mr.. Pea
body charged the co-trustee of the
mortgage with neglect Of duty In not
appearing AZ the Rock Island hearing
on March %. and with being unjust 20
the co-trustee not 20 have given notice
Of the arrangements" which prevented
his attending.
Referring 70 IAN intervening petit
tion" By Mr.. Francis praying for
payment oft he April / interest on the
first and refunding Is, Mr.. Peabody de
clared that the petition did not in
clude an objection 20 the payment Of
receivers certificates issued in respect
Of the July interest on the Rock Isl
and debentures, Of which he said Mr.
Francis is holder Of a substantial
amount
I'VE are aware of the fact" said Mr.
Peabody In this connection, that you
are the holder and representative OF
large amount Of junior securities. II
we may be permitted 10 say so. this
fact not only disqualihes you from act
ing as trustee. but ought 10 move you,
in fairness 10 the bonds which YOU
are bound 20 protect, 20 align yourself
frankly on the side Of your interests
and Of the views which you entertain,
and by resignine as trustee relieve the
situation from the obstruction and en-
barrassment occasioned by your sc-
tion and position.
at only remains for me to say, re-
ferring 10 the closing paragraph Of
your letter, that both my telegram
10 you and this letter were and are
meant % be framed iu courteous
terms At the same time the commit
tee feels thc responsibility resting
upon 10 20 protect the interests Of its
depositors, and in so doing 10 deems
IL necessary. DO view of your adver-
sary attitude. 20 speak both plainly
and to the point"