, 1865-01-16
GREAT SUIT III TIE U. S. DISTRICT
COURT,
NcdsNerth rs. the Chicago l. Northwestern
Railroad Company.
The Galcua Etock and 3oudholders
Endoavoring to upset tho
Consolidation.
Railroad OAleeFs-An Injunction
and Receiver of The Effects or
Tho EaIeAn Ii. u. Demanded.

On Friday last In the Un1tsd States District
Court for northern Illinois, Mr.. Julius Wadsworth
OF New York. in behalf of himself mud all other
stockholders Of the Gnlepa and Chicago Uniod
Railrosd Company, fled a bill In chancery praying
for The appointment Of review for the effects Of
the company, and aaking that an Injunction be
iasued 10 restrain the Chicago and Northwestern
Railroak Company from using tho track and pro
o. the 5oS TGs t1s
summary Of The bilf: '''@e
Mr. Wadsworth states that the G, & c. U. R. r.
was the aEst railroad constructed from Chicago,
and the first OF any importance In Illinois. Oa
juno 2 1sG4 It was In successful operation and Its
stock and bonds were considered reliabl9 inyest.
gesp ISL y ns pei me 9r ae ss
soon have surpassed those Of any railroad In the
Northwest, 1n lss3 to complete Its road the COM
ds dist mortgage e3eeutsd. julius Wadsworta md
Aliens. Robbins Of N. Z. were appointed Trustees
The property Of the road WAS conveyed IN trast 10
preacfye intact he road and revenues. Aconnr-
ss sss!s:e ~ -
idaton most seriously {mpails the value and aeea-
0n June 4th The directors OF the Ga1ena Road
frnudu1enty transferred to the Northwestern Road
The property Of the sail Galena Road, aince which
colo benefit Of the Northwestern Road. The con
eolidation wns cfecicl without The consent OF tbs
trustees Or boudholdera. The directors Of u road
have no power to ALLEVIATE the property or firhts
Of the road. The charter oi the Galena gives no
right to consolidate; neithef does any general or
tpecial law Of the State Of Illinois. Long prior to
Its maturity the sinking fnnd Of the Galena Road
would 1iqnldatc its indebtedness.
The Northwestern Road ls composed Of several
aeostiye railroad enterprises It never yet paid
psnses, repairs and dividend. Ithofds such
powers only as were conferred BY the purchase OF
ibe coniedrrated lines. The creditors OF the road
amount~thc ' faifer being mostly held BY nav II
York money brokers and the present managers.
Prior 10 June Inst, the stock Of the Northwest
managers secretly conspircd to secretly get con-
@ ena e. ResS S Gsna asa
Owing 10 the confidence of the stockholders Of tho
Galena Road, sG 436 shares out Of Co. Isl were I'M
represented 4 tho election Of ot1csfs on june I.
Hew Snrt monev hroSrrs. nrncnrci tHe nrorfrs
of large number Of stockholders for the clecuon
Of Directors They caused to he elected 4 net Of
lena Road, who were secretly and fraudulcntty
conspisiug to transfer the control Of slid road to
the Northwestern. Or the Directors elected.
the Northwestcrn Road; Edwin II. Sheldon is q
lsneis Peasedy i sreSsr q feaSea2. ss q
holders meeting !; Ira Z. Mum has long been
jdentiacd with tie Northwestern Road aud hostile
to the Galcua; John 3. Turner resigned tho Pres
James b. Fish, Wm B. Scott, VIM. Il. Sands, Ed.
ward r. Bancroft, and james ". Ewell are resi-
dtns Of New York grcstly interested IN the
Northwestern Retd, and antagoniBt1c to the CT
lena. who secretly conspIred to obtain control OF
the Gnlcna Road and appropriate it wholly to the
use OF the Northwestern.
uy proxy votes the Directors fraudulent1y pre-
tended TO consol,date the roads. The Galena was
made responsible for the debt Of the Northwest
ern. and governed and oepsated by the North
Ihe Peaiusnlar Railroad OF Nishisan was
adopted in the consolidation. VIM. B. Ogden aud
Samuel ). Ttlorn own 8, ,eG acres Of mineral land
a]ons The line, and the consolidation vas s2eeu-
tent OF one million dollars WAS Issued by the PEN
insu1a Road and exchanged for Rtock Of the North
soes Was ssue by osdea nd Tden espseal,g
the Northwestern Road. The Galena Road WIS
blottcd out4 and the complainant never heard OF
the scheme until fully consummated
/ On June =, the newlyt1ccted Directors met and
fully aequiesced 1n the consolidation. They took
Upon BELIEF, the complainant represents that the
Directors Of the North western Immediately Issued
"a, ,0sO, 500 In preferred and the zane amount in
| GaIena stock. Each Galena shareholder receired
| one share OF eaeh. with q in money, generously
abttEasted from he e treasury of the Galsna koad
! u0,0(D In construction bonds were Issued. In Sir.
Dedcn'a circular statement the cost Of the talcn1
Is given ht <13,t 1S0O, when the acIual cost Was
tri1e orer Il, ,000,O00. The complainant believes
| there has been an orer-tssue Of Sorthwcstern
stock, amounting to two or three millions: The
| consolidation was lllega, and void, and cams
clearly within the intent Of Section 10 Of the Con-
slitnton of the United Siates relative to impsir-
| Ing the ob1ications Of contract The gross earn
inEs OF Independent Iowa and Wisconsin roads
were ftaudulenuy reported In the Northwestern
| statements.
I Mess1s. Ogden, Smith and Danlap, OF the North
western road, arc Interested In Land, lumber. lead
iron ard coal companies a1on9 the line Of these
junction nsafnet the Northwestern company. TO re-
stsnln them from paying 10 the Stockholders ofthe
Northwestern r al the prof earnings revenues
The Galcns road IL asked, the consolidation to bo
declared null and void, and Directors OF the Gale
ma road removed for wilful fraud aud ualfeAsancs
| in office. Wr1ts Of summons are asked for all
! parties concerned In the transaction, and state-
nj ut on honor from the officers Of the Sorthwaa-
| tern fna1.