New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-06-20
THE COURTS.
ANOTHER GREAT RAILWAY sUIT-CHICAGO AND
NORTH-wESTERN RAILWAY IN COURT
H.. L. " LlIAnr-

another
way Company granted parte the following order to
show cause, with temporary Injunction:
yseg and Iy i'm sfdy thereto suneTed sufficient grounds
this order eIsi and the plaintiff, having gwen seSS sgs s
fore Special Tenn held in the City Hall in the City New
injunction should made In this setion prayed for the com
Paa and Why such further or other order should not be MADE A'
And do hereby further order until shall have been
each ofth and their attorneys agents and officers DO abso
S s W.u Ip om p & % purpose e msS, spor
pirg dividend dividends upon It's eIo capital
preferred capital stock Of said payable in such preferred
Da1d Seo York, June IT, 1863 -
This order effect restraints the issuing Of the stock
dividend which has for some days been In our adYerus
ing columns, OF 10 per cent on the pre1erea anu so
mon stocks On the issuing Of this injunction bond
OF fled the amount being 5000. and the su
reties WIN. H. Lee and George Bell The substance OF
the complaint is that the plaintiffs owners OF the
common stock Of the Company and also bondh0ldefs
of the union of the Chicago and Northwestern Railway
Company, itself product OF the sale OF the Chcag9
and Fond du Lac Railroad Company aud the Gaena and
Chicago Union Railroad Company This consolidation was
effected Of Illinois and WISCONSIN on the seeoho
day OF July 1864. and by 10 IL provided that the
common stock Of the Chicago and Northwestern Railway
Company should be the common stock OF the cohs3lldh
ted company and that the consolidated Company shOud
preferred stock, which should be entitled 10 pre-
ferences 90 the aggregate extent Of 10 per cent N the dv
per cent and after dividends Of per cent on
stock then secondly further preference of per cent
After further dividend Of three per cent ON the common
stock both classes OF stock shall he entitled to equal rates
per share in further dividends That the oertcates
Tor the preferred stock OF said the Omcag0 ana Noru
Western Railway Company should I've exchanged for Ger
uhcates in the preferred stock OF the consolidated Com
pany That the stock OF the Galena aud chicago union
Railroad Company should he convertible into the
ferred and stock Of the consolidated company
share of the common stock OF the consolidated Company
for share Of the Gaena and Chicago Union Ralroad
Company, and that the stock OF said Company
should ON such conversion he entitled To the
payment Of s. in money for each share OF stock
converted. That the capital stock OF the said con
sOdated Company should be the aggregate or the STOCKS
common. preferred, and special which the respective
Companies authorized 10 create by virtue OF the
laws applicable thereto. winch the said consolidated
Company authorized 10 create by virtue but the
consolidation declared 10 be the aggregate amount
preferred stock which the said corporations had re
spectyey issued agreed 20 issue, aud tho amount OF
the common stock declared TO DO the aggregate
amount OF common stock which the said corporations
had respectively issued or agreed 10 issue That up 10
that time the GaeBa road had not issued any preferred
stock and that the stock Of the consolidated Company
and ali they entitled 10 issue First: Preferred
stock which amounted 10 about the sum OF s562In 49,
and did not exceed the sum OF 100000 Second: Com
$40 100 c. That they were Indebted at the time the
consolidation to an amount exceeding the common stock
and that this amount was received between June, 1904
aud May 81 that at the latter date II stood as fol
lows The bonded fund debt amounted to the sum OF
S2O2Os2 81 the floating unfunded debt amounted TO
the sum OF $a25.S9o ~ tho preferred capital stock
amounted to the Of si299i.Il9 70 and the common
capital stock amounted 10 the sum OF Sl3le0Hl ls That
in the printed report Of 1855 was the following;
No further Improvements increase Of equipusu b. means
Gs,,I a s b. o. . o. ds S ai . % BE-
5ss e. Nh be, s,, s S e. e SsTsS ,s sss sT
floating debt f1be decrease We ioapt, stock 10 eoudueE the
operations Of this Company a. 10 IL pos constituted"
But nevertheless the slst May $780, the condition OF
the Company was this: The Bonded or Funded Debt
amounted TO the sum OF lO5i COO The Preferred Capital
the common capitl stock amounted 10 tslftooi Is,
the bonds held by plaintiffs bonds convertible
into preferred stock material element OF their value
that the 18th Of May last the Directors resolved 20 in
their stock by issuing ten per cent both o pre-
ferred aud stock and published the notice In
an not saR Had e y e aS Of the ss G Of
Wisconsin to increase s capital stock for ths purpose
Of said corporations and that the action Of the de
PENDANTS In declaring aud making an increase OF It's cap,
a stock, for the purpose Of making dividends IN capital
stock is contrary 20 law and fraud IN the interests
OF the plaintiffs bondhoders and stockholders and Of
all other persons similarly situated PaintHs speclay
clam and insist that said corporation defendant mas no
power authority. Frst To increase It's capital stock
10 create or issue any new or additional capital Stock
for the purpose OF declaring or making dividend or
dividends upon it's present capital stock, or for the pur
pose Of paying or providing means 70 pay dividend
upon It's present existing capital stock Second To de-
existing capital stock Payao IA tue capital STOCK OF
said corporation. Third To declare ana make
capital stock except in money, and from
its net earnings proht Fourth: TO Increase It's pre-
in the conversion OF It's bonds into preferred capital stock
Ffth To increase its preferred capital STOCK or TO ere
issue any additional preferred capital stock
for the purpose OF making OF paying or providing means
TO make or pay dividend upon its prysent preeTea
dend upon It's present existing preferred capital stock
removal Of the books DC. Of the Company.
The following Is the prayer Of The complainant e..
9 orc4on desd.t he brewer eHoacd sn6 reraSsd from
ea,n Or issuing ony preferred capital stock q hs Chicago ard sori
Western Railway Company II addition TO y. present s.ng preferred
fund bonds hsnbefre described int said preferred capital
ei and res,r.psd from creating or ISSUING any new or additional
preferred capital fsad he Chicago North Western RaEJ
1s il peut sstg preferred capital soet purpose Of
P p1l.5 81 S' p capital t ssa !. 40 S
EYER snon.d ard Ie..Ted from .ln or ahsg An ddssa o.
dividends be made declared and, from the accumulated vet
forever dseaug nsfas any dividend
dividends Spon y, it,ss preferred ea ..Gel pyas, ~ ne pre-
be forever .biod and restrained from paying d1idsndo dIdeod
5t he Chicago Rs-s ca%psny .nS psyaS.
reSsd from oss de raSsr SScs. Of Il: chss. and SoR
wssn Railway ca@p,n ts 18th Of June 1855 o. isay Other
sSo s RE s g sss S i ssiss o @ or
os s. Il 'sy 'as 'ra S S d june 5 Il sy
other tine for the purpose Of making OF declaring dividend dVr
a capital oi Of sisppco1sr any dividend: arlGy made and
SsssTs . s90 . I'D Sss sSSi 90 as % ia
saes and s'd Nom S ., S or eaq Or PsT9S to re-
q his Court The stock boob, or the transfer s0gL ON Chicago AID
n. pong Of 4. Bee Of ps oGs 0' s o.
Ton defendant .ad also that defsnGAa. b isie',r
sq,a Or permitting 70 ?. made o. sSS any Certificate OF :'sats,
sued s1sS p Or delivered 70 sny holder Of the pr,sn, ' p
rTe capital oc Of ,ad corporation defendant dividend bpOn
en-, ~ dydSa op soeL An3 pss fab1 ., ~ ~,
Temporary order Of injunction 70 the eject above prayed GT may
e this seon and continued during the pndebJ thereof
plaintiffs further that the Ae prtoeengA and
ChcAge
Company had done and passed the City Of
10th May 1895 and that time berenbsot forth papori
ng Increase the preferred capital oek Of d corporation defendant
declaring dividend upon the preferred stock PAYABLE
nth dsJ of June 1865 preferred capital stock mar be sd
Illegal and void plaintiff further mar
thai The Chicago and North Weston RnWAy Company nay Adadgsd
this action and that the plaintiffs such M
such other relief the premises the the
IequIe, shall be agreeable 70 eluDAt.d June 1863
...I RAPALL0 A SPENCER, PLAINTIFF Atton.y,
To the complaint are attached the articles of consoda
ton OF the two companies made In June 1894 and the
affidavit OF Joseph NJ DE Veau, who swears 10 tbe fast
the directors about to issue stock dividend the
OF ms information and the grounds Of his belief
being that be has this day taken from TIE NEy-YORK
TRmCsE, daily newspaper published In the City OF New
York, the printed advertisement, printed and published
In said NEwYoRK TRIBUNE OF the date June TO- 1909