, 1865-08-22
LETTERS FROM THE PEOPLE
The Chicago and Northwestern
=. Railroad Company. =.
treatment Of the North American In
80 e. dfHN6.

/; - III -,
S$ pf1' 2aS fS9 zF5 SSHf6H'stSs $2SE65s s
Editors Chicago Tribune:
Will you be 60 good as to publish the fol-
lowing, for the benefit of all whom it may
concern?
Tho -caEa .oE Julius II Nad5worth, which was:
commenced By him at the request Of uum-
Der Of the minority stock and bond-holders Of
the Gnlena and Chicago Union Railroad Com.
pany, carly tn January last, against the Chi
,cago. and EorthWesten Railroad Company,
for the purpose, Of testing the validity OF the
pretended cons0lidat1on OF the G. & C. U. r.
R. Co. with the C. &: N. w. R.~R. Co..; came
up recently before Judge Davis, OF the United
States Supreme Court, and Judge Treat, Of
the District Court Of the Southern District OF
Illinois, at special session held at Chicago,
upon preliminary motion for an injunction
and RecelyeT;' and although an injunction
was not granted, Jet an order tcas entered by
the Court, equivalent thereto; VIZ: " . :
say ssaat amsE,s i'll ssa S e
q 1eetirer tc;u nof Dc eppoiai+d. In the most Ia
sorabIe siew Of The conHovctry for the defendant,
sS ss q 'R hs se d sssa
stock On Tho lst Of June, 1851, with lntereak The
defeodan one Of thefz Dircctnzf, is therefore re-
% sty Of one N hn1dra thousand dollars, payable to
the Clerk Of this Court Tor the benefit flhe par
tics in Interest With surety or sueties, which boad
ehatl be conditional TO abide the final order OF the
Court, and shall be approved by enc Of the Judges
Of this Court. II olhcr nun-cnn1eut stockholders
male themselves parties to The suit before The hear
deemed Necessity, Or IN additional bond can be
given,
This decrcc, although the court declined to
decide the merits Of the case," re-aftirms tue
decision Of tie United States Supreme Court
as e.lunciated In the case Of Clearwater vs..
Meredith, and settled tic la,o precisely as con-
tended for by the eomplaipants, to Wlts that
tbs rights Of q non-conscnting stock and bond
holder cannot b aduttta by consolidation
made by uny majority Of Stockholders In o
corporation, however large, if they assert
their rights and VIC arc now couddant tliat q
dnal hearing es1 No, only rss1't in declaring tho
No stakeholder con be compelled by my
court to sell his stock to ans man, or set OF
men, for any purpose whatever, and there Is
no way In wh1rh :his property can be taken,
except Ly the exercise Of the power Of e1ni.
nent domain, which, by the, Constitution Of
tho United States, eannot be invoked fon any
such purpose rs that Of a consolidation,
From the investigations which have thus
far taken place, the following things have been
: disclosed il regard to the Chicago and North
western Railroad COMPANY:
1st. That It LAS no charter whatever In the
State Of nluois-and consequently no defined
powers limiting It to anything, but Is subject
10 any species OF de 5ure or Dc Jado argument,
which may bc required to suit the eouycn-
ieneics Of its managers or the necessity OF its
finances.
"a. -That It isc8ercising usurped powers and
making the most Desperate attempts to erect
gigantic monopoly 10 hold In subiection the
mil Dad traffic Of tile entire Northwest.
I'd. That its finances arc supplied not alone
by legitimate traffic, but by levyiug upon tho
people the most exorbitant mud outrageous
taxation In the shape of.freiyhts and charges
ever levied or imposed upon the community
by any man or Set OF men IN this country,
equaling lat distance Of little over one
hundred miles from the clty,of Chicago,)
nearly cne quarter Of the products Of the Rr.
ncrs 10 transport Them to market.
4. That, in order 10 sustain the consolida-
tion, seveIat millions OF stock have been Issued
during the last year, thereby watering and
diluting the entire capital al tho expenso of
ihc Stockholders; and It Is believed ttat It
has now prepared md Is about 10 issuea mort
gage covering the entire consolidated proper
II TO secure q Joan Of twelve millions oi dol
lnrs, IN order to carry out their schemes md
perfect the proposed monopoly.
s. That, on the 21st day Of October, 1861,
the Chicago and Northwestern Railway Com
pany consolidated with the Peninsula Rail-
built BY parties In the interest Of the Chicago
and Northwestern Railway COMPANY, and
s1oek md bonds were issucd, upon which therc
had been paid only small per cent. on
the dollu, and which were afterwards declared
juU paid ttoek, aud the road then consolidated
With and sold to tho G. & N. W. X. Il. Co. by
William B. Ogden, President C. Il N. W. Il. +.
Co, and James Il. Young, President Peninsula
| II. 4. Co. Of Michigan, and very large
amount Of the stock OF the c. 4 n. ". r. Il.
Co., supposed 10 be about four millions ofdol-
lats,} was issued in payment Of the Same, to tue
The C. & n. W. K. R. Co., who were not In the
"ring," and who Ind no interest In the Pen
inEnla Il. II. Co. ut all, and knew nothing Of
tic transaction. This fact Is not generally
known, but rs tho Peninsula Road Is In Miclh-
gan, and as some parties living IN that State
law was passed, making such acts criminal,
end requiring the c. & y. ". R. r. Go. to re-
ducc lis capital stock to the amount Of the
cash vnluc Of the stock which they declared
full Inid. They have not get complied with
The provisions of the law, but the penalties
for Noncompliance no doubt will be strictly
enforced.
The entire law, which has never before been
published, Is as fo1lows:
Bill 10 Prevent The Fraudulent lssre Of Railroad
sE.Hos1; The people ofihs sta,c Of Michigan
company ~ listing Is Il strtIe Of The laws Of ahis
aiI ssate Eol or my onscr ol my sGcn company t9
EEL dGposs o. o. pled.c any .hatrs N the capital
sEeh shares in The capiai stock Of such company,
until tue shae* Eo told, q nt pledged, and
the thales ,9r ~ Which sEeh ESP esiealss are 70 he
for dollfr, Into the treasury Of the company, And
in ea.e .ny such company Eas heretofore sold, ds-
es ., Of a1y taasg p u sapts ,to
e Wdsn I.lat or noanai payments a Gny hase
suet LILLE .ne9eae1' lnS onees ana n3itc!aa o.
fsTa foEn tr ~ ass neny w1tnin ninety
of b. a1nnTn1 ~ f@e -, ns ., ssn i ae @fs
et .se ss rs, ss Al .sa saEy oe s
5ss :; 4 e,.s = ;sa. ssise.es
iaffnn ~ ~ IL tns nn,5s,n: ~ @ tHen ~, n no
ae dopn sa r. 81 dccne I'M; ae1 agea n
nna Gpon e , 10 ~ sda n1 pan
fndn,Sn rfrs s;oers n hc rnr1fnns ~ this " ~
rhail nnnx "a iuIl1 10 e oeks and oIeens 81 cM.
,siIfin 1hts siafr ri n o7s3nai st. T. r, @
panies c5is,jne =: arsaesssa. e'n''
SEC. :. il i hcrcHy made the duty Of eyerr such
Iss1y e. %en,S u 'S f v H. Sc
special 7port and statement, sworn to by dc pi
aent md treasurer of the company, setti6g forth ex
Pany, to ths date q snch rTpost and the amount
a. ho sba,e non. nd ndes isa " saen enmpany
IN mnney: ma ,he. amosnt 1scr5sed thrrSnI Is
nuy, IN propsrty and other ctects and tic a,,onnt
aDd number Of shares, and The number of fl,e ceIt
ncttes Thereof, lssae1l is full paid stock upon
which partial or nominal payments only have been
mMde-
- src: 3 Any violation 81 .he provisions Of this
;his .rf 10y ~ ,S sa 1 ,9c
thesec1esry Of Ststc in Seiston 10 anT Of thc mat
tcr. 1eouiTed by tnc preceding section 10 be rrnrt
ed to him, stalf render he officers md direefors OF
an5 aueh faflroad company as aforesaid guilty OF
an: tueh violation Or neglect. o. making, or PEI.
~ tho ~ .se m M n9 tha 1ns!y ma6e
nrT snsane g tcn w. IT, 1ssn ~ sae 81 ID
neelect Or tafse statcment md to he Etstc %
nlso, for The penalties heretofore provided
BY law. and any shareholder or
shareholders neglec.ing Or refusing to return bis Or
,. ,6ef ian Pad etock GeItiaeaies 10 ahe company
Madic pr nad' @ oE nGmna z; paymenRss Ry 9n!y aass sssn
ioT lie toune actually paId in money OF H. saui.
vaicpt, eba become individs,ny liable alter ninety