The New York herald., 1874-09-24
A THREE MILLION DOLLAR SUIT.
The Milwaukee and ST. Paul Railroad
Company i'm Court.


A petition was yesterday filed in the United
States Circuit Court, before Judge Benedict. on the
part OF Aaron 5. Bright, praying Tor an injunction
against the Milwaukee and ST. Paul Railroad Com
paIy preventing them from issuing or vending on
the market any part OF s35, ,00O, 900 OF mortgage
bonds which the said company are now endeavor-
ing to negotiate as a consolidated mortgage on
all the lines OF road controlled by said company.
The petitioner, Bright, represents the holders OF
third mortgage upon the La Crosse and Milwaukee
Railroad Company, whose railroad has come to be in
possession Of the Milwaukee and st. Paul Company.
The petitioners claim that they are entitled to re-
deem the property Of the La Crosse and Milwaukee
Railroad COMPANY an offer Of which they nave
made. They also claim that the plaintiffs in the
SUIT came into possession OF the property OF the
petitioners being about 200 miles OF road ana
that they, as trustees for the petitioners have re-
ceved the rents profits and earnings OF said prop
erty, and are bound TO account for the same and
Apply the same TO the discharge OF the mortgages
prior TO SAD tnlrd mortgage. The petitioner
claims that he holds $1,000, 900 OF said mort
gage gag o bonds, and and. that al other holders
tiouer iurther claims that said rent and income
Will nearly, If not quite, discharge all the liens
upon SAID property prior to that lien held by Pc
uuoner. Petitioner iIrtner states that ne is ad-
vlsed and so charges the TACT to be that the com
plainant as a corporation Is now about putting on
the market a general and consolidated loan OF
$35,OOO, 900 secured by mortage on The whole OF
the several railroads WI nich constitute it's corpor.
ate properly, and which Is intended to include the
said La Crosse and Milwaukee Railroad, therefore
castns further and oppressive burden upon the
rights oil this petitioner and others such
third mortgage bondnoiders and upon the equity
OF redemption vested in them as such. That
petitioner IS now proceeding before this honor
raole Court upon his said cross bill filed in this
cause, as also by proper judicial proceedings in
with the complainant or It's corporators, and
upon sucn accounting he is ready and has ten
dered to pay any just and lawful debt or amount
still unpaid and due on the judgments, mort
cages and liens prior to said third mortgage
bonds II any there be; and otherwise to abide
and perform the decree OF this honorable Court.
But petitioner states that II complainant is per-
nitted. as he is ADVISED is being done, to vend
and sell IN the markets OF the United States and
or Europe the said s35, 100000 of bonds
or any part thereof in such manner as to
become charge upon the said La Crosse and
Milwaukee Railroad, It's franchise and p1bperty
that 1t Will cast upon the petitioner and others the
necessity oil htgatng and coniesting win the
holders and purchasers OF aid s35 900 OF bonds
and thereby lrreparaDly iniuring the petitioner
by obstructlng, hlnderng and delaying his exer
clslng his rlght and equity OF redemption OF the
said La Crosse and Milwaukee Railroad, it's fran
chise and property, which be Is now seeking TO 10
accounting, as prayed for IN his hill filed IN
this cause as Aforesaid. That the said s35, 900 900
OF bonds about being issued by the complainant as
oody corporate are IN no respect essential to or
for the benefit OF the said La Crosse and Milwaukee
Railroad, but are for the benefit OF the complainant
and its cOrporators, who seeking to burden
the said La Crosse and Milwaukee Railroad for
their own benefit to the great and permanent
Wherefore the premises considered, and
as the petitioner has adequate redress
save through the interposition OF this honorable
Court, the petitioner prays that an order may be
issued requiring the complainant, as body cor
porate, and It's officers, agents and servants, to
appear at day named therein and show cause
why they snail not be enIoined from turther lssu-
ing vending or selling said $4,000 900 OF bonds
that may nJure or impair the right OF this peti
toner pending the accounting prayed in his SAID
cross bill filed IN this cause, or which may en-
cumber the equity OF redemption OF the petitioner
as by him being asserted as stated and petitioner
prays that upoa such hearing perpetual njunc-
tlon may be granted and that petitioner may nave
such other and lurtner order and relief as may be
deemed Just and equitable IN the premises.
And petitioner whl ever pray.
SULLIVAN, Kobe FowLER Solicitors lor petit
toner.
FRANCIS FELLOWS of counsel.
District, ss:--Aaron Bright being duly sworn, says
the petition and Knows the contents thereof and that
true and tha The stements made therein ON inorma
ton and belief he believes to be true. A. : BRIGHT;
S0y Sc Se% " eosn
of Se,S foy-rhe Gilwagkee and St '4 Pan Raiiroad
COMPANY complaining vs. James sweeny, William
reading and Ming tae petitions Of Aaron s. Bright one
solicitors Of said deIenaants it is hereby ordered that
The complainant dne ailwausee and ST Paul Railroad
Court the same BE- N sessi9p before Justice ol
New York IN the saia district on the nrst Tuesday OF
octobe 4 M weve eca6f ea be- RqS Of @ d @ as as
should not issue prayed In said petitions and pur
suant the prayer Of the answer and bill Of the
said petitioner defendant TO the entitled
and filed therein; provided that copy OF this petition
within three from the date hereof be served
the complainant by leaving a copy thereof with some
one OF its officers, agents or solicitors
SEPT 2 1874 CHAS. L. BENEDICT Judge.
The proceedings in this case and the order in IL
issued by Judge Benedict Will be read with great
interest by all parties connected with the exten-
sive railway property not only involved In the re-
suit OF this suit, but OF the railway companies
throughout the country. 1t involves investigation
into the transactions by which the Milwaukee and
81. Paul Railroad Company became possessed Of It's
vast consolidated lines.
For the petitioner, Joseph B. Stewart and Alger-
non s. sullivan; for the company, Il. N. Bangs.