, 1865-01-15
GREAT SUIT In THE U. S. DISTRICT
COURT.
Wsdswerth rs. the Chicago Northwestern
Eailroad Company.
The Galona Stock and Bondnoldecs
Eudeavoring to upset the
GouSo11dafiaua
Charges OF Fraud and Mn1fensance o
Railroad Ofilcers-An Injunction =,
and a Receiver Of the Eifccta OF
the fsH1cuN H. Il. Demanded.

III EII1s4S lust IL LUG LQl[4Q 2L1LG8 uiStfiE$
Court for northern Illinois, Mr. Julius Wadsworth,
sof New York, in behalf Of himself and all other
stockholders Of the Galcna and Chicago Uniod
Railroad Company, fled bill in chancery praying
for the appointment Of review for the effects OF
the company, nnd asking that an Injunction be
issued to restrain the Chicago and Northwestern
Rasosk from ug TIE 5ack and pro
l@ PAGE Of Of fGolfG3p t%d @ We append tho following
1T. Wadsworth states that the G. & c. .. R. r.
WINS the first railroad constructed from Chicago,
June Z 1sG II was In successful operation, and ita
etock and bonds were. consldcred reliable invest
nents: rs net earnings e pc, mile for Tue ise3l
soon have surpassed those Of any railroad IN tho
pany borrowed &, 600 COO. bonds were issued and
hen
The property Of the road Was conveyed fn trust 10
secure the bond holders. who deem itthetr duty TO
mato1y mortgage was subsequently executed, in
conformity with The charter, etipuiating that all
property thereafter acquired shouid be held liable
iS.en @ @ most Seriously Spairs tbe Value and sesa.
u 55n Jane IL lie directors r. e % the oalens Road
The properly Of The said Galena Road, since which
date the Galsna has been operated by and for the
colo beucAt Of tho Northwestern Road. The con-
or %Ae o ead
are merely the trustees Of the stockholders, and
have no power 70 aiienatc thc property Of rights
night to consolidate; neither does any general Or
special lay of The state of iAinois Long p1i9l t9
is atq5 she fR Of the Gea Road
Tho Northwestern Road IL composed Of several
abortiyc railroad entelprtses, It never yet paid
repairs and dydepd M - It holds snsh y
Inc coufederated linea. The creditors Of the road
hold two mortgages 9nd preferred stock 70 large
anount-thc litter being @ mostly held by Ne"
Prior to June last, the stock Of the Northwest
managers secretly een55pt1ed to secretly get Son
the Galena Road to the use of the northwestern.
Owing to tho confidence Of the stockholders Of the
Galcna Road, 261S0 shares out Of 60, ,ss4 were un-
represented at the election OF officers On June !.
Tie officers Of tho Northwestern Road, through
New York money brokers, procured the proxies
Of large number Of stockholders for the election
Directors hostile to The best interests Of the Ga
lena Road. who were secretly and fraudulcntly
conepi1ing to transfer the control Of said road 70
Mat1on D. Ogden Is brother Of the President Of
the Northwestern Road; Edwin H. Sheldon Is u
brother-in.law; a. g. Gorcntry is 2 relative;
New York, who insisted In controlling the Stock
% entfed% Whit VIII tSs Eo1thwcste1n Road @ and a hostile
taeaes nc % ot he Galeaa Road Nth bftter tselnss;
ward @ F. Bancroft, apd James ". Elwen arc resi-
SorthS Si Resd, and antagonistic to tie O.:
lena, who secretly consptred 70 obtatn control OF
the Galena Road aud appropriate it wholly to the
By proxy votes he Directors frauaulently pre-
tended TO Consolidate the roads. The Galcna was
ern, and governed and ocprated by tho North
.dopte sa n te eorsoliaat3on. Wm. g. U:dcn m nd
Samuel j. Ti1dcn own s., GOO acres OF mineral land
along the line, snd the consolidation VAS espccn.
tent Of one million dollars was Issued by tho Pen
intula Road and exchanged for stock Of the North
wcste1n-eommon and preferred, The common 1,
for this purpose-thercby watering the stock Of
the Northwestern Road. The Galena Road was
blotted ont and the complainant never heard Of
On June =, tho newly.elected Directors net and
fully. aequiesced In the consolidation. They took
fraudulent possession Of the road.
Directors of the Northwestern Immediately Issued
500 in preferred and the came amount In
common stock, q nrete5se Of exchanging It ios
one tharc Of each, with IS in money, generously
abst1acted from the treasury Of the Galena Road.
SRS5 1o1Ss s1s .s1sa sSsl aqa
Osdcn's circular statement the cost Of the Ga'ena
i. given at 1900. when the actual cost vas
H1ae over SS,u0QV0u. Iae comp!ai9aot oeneses
stock, amounting to two OF three millions. The
consolidation was illegal and void, and eanc
clearly within the intent Of Section 10 Of the Con-
sHtution oi The United States, relative to impalr-
Inc tie obligations Of contract, The gross earn
lncs OF independent Iowa and wisconsin roads
were naudu1ent1y reported In tho Northwestern
Mcssrr. ogden, Smith aud Dunlap, OF the North.
western road interested in land, lumber, lead,
roads. Mr. WadaNnrth therefore prays for an In.
junction against tho Northwestern company, to re-
strain them from paying to the stockholders the
Northwestern rtad the profits, earnings revenues
OF the Ea1cna road. A receiver for the effects OF
the GalenA road is asked, the consolidation 70 be
declared null and void, and Directors of the Gale
IN oficc. writs Of summons are asked for all
parties concerned In the transaction and htate-
mcnt On honor ffom the officers OF the SorthHc5-