, 1873-08-11
THE ST. PAUL & PACIFIC CASE.
Judge Dillon Appoints n IsecGiYcr-.
The Court sls lEaiIronl.EsullticK.

Judge Dillon Appoints u kecciEor--
The Court liz n NEUTRALITY-SUSPICIOUS..
f;,o'n the Davenport lioea, Gazt.te, Aug. 8.
St. Paul Pacific 1aailroat, Judge Dillon has ar
rived ut an opinion, ar abstract OF which We pro-
sent:
On tho bill ned, Judge Dillon appointed a TO-
coivor for the st. Paul Il Pacific Railruad; that
is, for tho extenHlon or uncompletol lines run
ming from Watab to Brainard aud from st. Cloud
to st: Vincent, on or near tho Canada line. Tho
Receiver was authorized to borrow 81, 600 900, or
30 much thereof AZ might bo necessary, ut a
rato Of interest not exceeding 10 per cent upon
bonla or debontureB to 10 issued by tho Re-
ceivor, payable LII five yoars, the form Of the
boua or dobonture being prescribed in tho order
and deoree OF tho Court. Those aro matle first
tho uncomploted road. The amount Of road yot
to DO built is over 200 miles, and 1t must be CON-
plotcd by Doc. noxt In order to save tho lnnl-
gralt, which is tho principal security OF the bond-
There arc about $40, ,000, 900 Of bonds hold in
Holland which have no othor security than
tho Hnid uncomplnted limo OF road aud tho
laudsgrant. ase It ia understood tlat tho
e. oyssd g ito to fee,e R"asd the the read
bonds and dobonturea aboyo mentioned, which
tho Receiver is restrained in tho order from Hcll-
ing below par, and from selling at all except ho
can bo certain OF selling. enough to insure means
tho land grant. Judge Dillon, with tho NO
quiosonce Of both parties, has appointed Hon.
JcHso P. Farley. Of dubuque. as hocoiyer. Mr..
Farley has beon connected will. tho ruilroads
Tor many yuals \! sar'nuS capacltios, md
man OF unQuestioned integrity aud Of gfoat
onergy nnl worth. The order appointing
him directed that all contracts for construction
and purchases Of iron, etc., shall bo approved
by the Court or one Of itH Judges. Tho rcp-
resentatives in tlns country Of tho Dutch bona-
holders have cabled to Amsterdam, and received
assurances that tic necessary funds to complete
tho road mud save tile grant shall be forthcoming
without delay, III tley had confidence thoro
TINT, tho United States Court having takon
possession Of tho roal tho funds would bo
sacrodly applied to tho object for which thoy
woro furnished.
Judge Dillon. III making tho appointment OF
Receiver, remarked tlat. though the proceeding
OF q Court undertaking to bnill a railroad was
noyol, yot Equity had Jurisdiction and power to
prosoryo The trust :proporty aud security, and It
was plain that. if the Receivor wan not appointed,
tho lana-grant would lapse aud tho Ii, ,000, 600
Of bondholdors would lose all.
Tho Judge declined to appoint n Recover for
tho completed liue owned by tho First Division
Of the st. panl Il l'MoiAc nairoad, which III q
Pacific 1tailroad, for which the Receiver was up
pointed.
Tho Judge lccliucl to make the a5, 900 900 to
BIO borrowed by the Kecoivor lion upon tho
completed lines owned by tho First division
Company, which arc under mortgage for tho
funds with which tloy wore built
The Judge expressed the opinion tint tho
Court Ind Jurisdiction, and that, upon tho caso
nnlo, 1t WIS clear to his mind lhnt 1t ought to
DO exercised, as nothing but Judicial interyon-
ton could Hayo the imporiod security.
This III tho first isBtanco in the country III
which Court llna undertaken to build an in
portant line Of railroad and to raiAo tho monoy
thorofor.