Railroads -- United States; Railroads -- United States -- Finance
In other matters the opposition lost no time in appealing to the
courts. Previous even to the election two actions had been begun
against Henry Villard: the one in September by John Swope of
Philadelphia to compel Henry Villard and others to restore stock and
bonds obtained as a result of an illegal conspiracy:[599] the other
a petition in October by the Northern Pacific Company to force the
receivers to bring suit against Messrs. Villard, Hoyt, and Colby to
recover nearly $2,600,000 alleged to have been made unlawfully through
Northern Pacific deals.[600] The complaints were in the main the same
as those which had been made by the investigating committee, and
charged, _inter alia_, that Villard had secured a profit to himself
by bringing about the purchase of the Chicago terminal properties by
the Northern Pacific. Mr. Villard swore that his whole interest in the
transaction had been as officer and stockholder and securityholder
of the Northern Pacific Company,[601] and the receivers professed
themselves ready and willing to bring suit, provided they were
furnished with the information and evidence wherewith to prosecute
the same.[602] The Court reserved the Ives motion for further
consideration, and the following year directed the receivers to bring
suit; but the litigation was eventually dropped.[603]
In December, 1893, the Ives faction filed a petition for the removal of
the receivers. The charges were in part similar to those of the Swope
suit. It was asserted that at the time the receivers were appointed
the road had practically had no hearing; that its managers had in
less than a year burdened it with the interest of $60,000,000 for
properties which were of no value to it, but in many of which they
were personally interested and out of which they made large profits,
and that when insolvency was produced by this fraud they had put the
road in the hands of receivers nominated by them for the purpose, with
the effect of perpetuating the same control which had brought the
bankruptcy. Specific charges were made against Oakes, Villard, and
Roswell C. Rolston, president of the Farmers’ Loan & Trust Company;
no charges were made against Receivers Payne and Rouse, but their
removal was asked for because they happened to be in the company of
and presumably in the interest of Mr. Oakes. Besides this, finally, it
was alleged that separate receivers had been unnecessarily appointed
for branch lines, and that the expense of administering the affairs of
the company had been enormously increased.[604] The receivers filed
lengthy answers on February 3; Receiver Oakes in particular answering
every charge specifically, filing exhaustive documents in proof, and
maintaining in general the value of the branch properties and his
innocence of unlawful profits.[605] The court on the whole inclined
to his view. On April 14 Judge Jenkins handed down his decision,
dismissing the petition for the removal of Messrs. Payne and Rouse, and
holding Mr.
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