Clipped from US, New York, New York, New York Times , July 22, 1915
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REFEREE FOR WABASH CASE.Will Fix Sum Ciould, Pierce, andJeffery Must Pay.Th* Appellate Division yesterday Appointed Morgan J. O’Brien as referee In the suit of James Pollltz against George J. Gould, Winslow S. Pierce, and Kd-wiird T Jeffery, three Directors of the Wabash Railroad who in 1 sanctioned an exchange of Wabash securities whichadded about JiiO.ODO.OOO to the Wabash’s Ponded Indebtedness Mr. ORrten will take testimony and determine the amount of damage which the Wabaah Railroad suffered through the bond transaction which the Appellate Divisionholds to have been illegal. *In the original Judgment of-the Appellate Division the amount of damage suf-lered by the Wabash, with interest since If**!, was fixed by the Court at approximately *.lt;«. It was decreedthat Mr. Gould. Mr. Pierce, and Mr. Jeffery should pay this sum to the W a-bash. a sum sufllcient to buy a one-third interest in the Wabash Railroad at the price paid xesterday at the foreclosure sale in St. Routs. The defendants appealed from the Judgment, however, andit was amended In yesterday s order, theCourt agreeing to let the referee takeevidence and report.The three Directors acc used in tn*Pollltz suit voted in 11106 tlt; Issue tit tfOOUtU*’ in stock and new ruritn*. hich securlti#** wer6 exrhaiiKed for!I*u*1r***Iiu oon.ooo delentures The plan went trough and n was allege.! by I oil it z ,at the road had suffered by the n.ldi-onal burden. There were oUie* Plrect-rs who s.in Honed the plan o. etchange, ut Mr Gould. Mi Pierce. Jnd Mr. off. rx were the only Directors served. In the final order as entered the Couitgain attacked Iht- method of ex. hanging ■. ill Itles, s » lugTin plan f exchange «»f th« drhen-ii e mortgage bonds of the Wabashlailroad Company described in the coin-hunt \va. .md i?*. void, and ul-m \ir»*s as in violation of the Consii-Ition of the state of Missouri, of the,,n Htutlon of the Slate of Illinois.lid of the law of the state of Michigan.providing foi a fictitious Increase of stock and indebtedness of suchinpaiiy.a n . _. -IIt w is said yesterday at the om. e of Asp inwall Hodge, attorney for Pollltz.; it a request would be made to begin■.medlatCv the proceedings before the ,5, relt; The Pollltz. ease has been In courts nearh eight.years. One low-comt brought in a verdict for Mr on Id and Ills associates, other courtsv,.d damages against the Directors rig.ng from im individual llatdlity t»-ard Pollltz of JIM.bon to a corporateihlhtv to the treasury of the Wabash allroad of
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