, 1874-10-05
RAILROAD NEWS.
The Rockford, Rock Island & ST.,
Louis Road.
Meeting Of Railway Man
ayers at New York.
Miscellaneous Items.

Miscellaneous Items.
ROCKFORD, RuoK ISLAND q ST.
LOUIS.
Tho Rockford, 1locg Island l. st, Louis Rail-
road, commencing at Sterling, In this State.
and ending ut st. Louis, haa boon In trouble
snco its inception. It WAS completed III 1869,
and rms found nt that tfmo to haye uppu itB
hantls bonded tlobt Of $O0O00G0 whtlo tho
property wns worth nbout 80, ,0Oo, 900. Thts OK
orbltant indebtoduens wna brought about, tlo
bonlholders nov claim, by tho spoculutions OF
tho parties supcrfntouling itB construction md
equipment.
Tho first twonty~thrco mouths Of itH manage
mont ita cnsnings osor aud above running OK
ponaes voro about $4,000. About this tmo,
July. 1871, tho prcBcnt management obtained
possession by purchase Of majority OF stock,
and n. II. Cablc, OF Rock Island, was o1cctoi
President. Far tue subsequent twonty-threo
month"; tho net earnings, aftor paying running
expenses aud rcntals, woro nearly 100000 OF
this sum orcr $500 900 waa paid as intorcat on
tho bonded debt. Tho rood, although apparently
prosperous, and boing In auoh ehapo under lis
now management as to inspire public confidence,
was by no mcAns ovor ftH trouble. In 1879 tic
management Of tho road mado
PROPOSITION TO THE CnED1Tong
for tho reduction Of tho interest. with a Wow to
advancing tho condition Of tho Company. Bond
holders representing ;ss.ooo,ooo accepted tho
Of interest oDo-half, and tako preferred stock
for onc-ha1f their bonds. In February and
August 1873, tho interest vas promptly mot,
but in 1874 owing to nnfrenaly legislation and
tho panic, the earnings foil OF to such m OK
tent that tho February interest WIS not paid. In
Juno last, =,
Mn. osTEnnEco,
formerly Of New York, but utterly Of Frankfort,
Germany, claiming through committee to rep
cauaca suit to DO instituted In tho United
Statea District Court IN this city, Judge Uloa-
gctt prosiaiug, to forocloso tho trust-doods mado
to tito Unlou Trust Company of New York, 10
SECURE tho bonds. The attorney for tho Com
pany dcmurrod to tho bill, on tho ground that it
was promaturoly filed, and on tho 29t!l Of July
tho Court, Judgoa Dayls aul Drunlmund con-
curing, Sustained Tue demurrer and tligrntasod
ss s OF h tho p9 22a St Sas 2uy Mr. 'sn Mesr1G *
city, holding bonds whose o1nors lad not corr
sented to tho contract of 1879 reducing tho in-
lcrost, filed bill III tho Circuit Court Of Horny
County, Judge plcasants presiding, ...1
To FOnECLosE THE sAME TRusT-pEEps. '-
and uekfpg that . Receiver l,o appointed during
tho pondoncy OF tho Guit. Tho Court sustained
tho blu, and appointed Il. i. Cable antt Judge
Iyndc, Of Rock Island, Roceivers, who imnic-
ulAtGIy LUX lU6BGH6lpH Ol Iuo properly, anu WHO
zinco that tltno hayo conducted tho business Of
tho Company under tho direction of tho Court.
On the 2ikh Of July the attorney FOR Mr. Oator-
borg. who had notice Of tho suit pendiug in
llc,lry, County, obtained M order from tho
United states Circuit Court to rcinstato
his caao, with permission to amend lis
bill and ii'o supplemental ono. On tto 18th
OF September tho amendment and supplement
was tiled, and notice was given that
AN APPLICATION F'ol1 A NEW RECEIVER
rrof In liz fr, f1tnf Aen4, 81 L.
The parties Interested in tho caso, sustaining
tho Ection Of tho Henry County Court, itR Ne-
ceiYers, and tho present management Of tho
road, aud those asking for now Receivers, and
opposing tho management, wore quartorod at
tho Qraud Pacific yesterday, aud wero prinaing
tlo,nnclycs for tho contest today before Judge
Dlodgctt.
1t appears tint l1r. ostcrberg ia sustained IN
rs application for now @ Receiver BY alr.
against who:n. according to affidavit Of Mr..
Cable, Buit Is now pending III Rock Island
County to recover o276, 900. Which, 1t IN alleged,
ho took Illegally from the Company wlilo in ita
ho'dera representing about 50, SOU, goo. On tho
ottur hanu,
THE PRESENT HEoE1yEns
are n',stainod iY bondiollors in this country
representing about 32oo, GOO, and By tho munic-
1oad holding. stock amounting to oyor
10000. ard also by largo majority
ct tho remaining stoclt Of the road, that
had BY hlr. Nostiy's friends having been set
asldo by the Circuit Court Of Rock Island
County. on account Of itA having boon obtained
ny fraud. beside shia, tlcre nro on record tho
a'lldayts OF tho officers Of tho road j,lstifying
the management III its various OPERATIONS, ns
well Ut tho n1ldaYlts OF David A. Oliu, Super
Kmbnll. Assistant Superintendent Of tue Chi
sago, Nnck iniant1 1t racifc Noad: lBaao ..
Howe, C1ief Engiuoor Of the Chicago, Iowa &
Nebraska. and tho Ocdar llaplds Il Missouri
Hlyor Railroad Company, as to tho present con"
Mtlon anu management OF the road.
TIE QUESTIONS IN DISPUTE
hfa o. consideia1!e interest to the public, inaS-
much M they involve probable conflict Of jur,s-
dction between the Federal and tho State
Courts, and may result in largo crop OF "oon-
coiyer, and ho attonpta to tale possession Of this
road. the Circuit Court Of Henry County
would probably fine aud impriHon him
ior contempt, whllo Judge Dsodgctt would
probably exerclHe tho sa1no prerogatiyo
attorneya Oh e,thor ado Of tho caHo mill suffer
thu salno penaltos for tho sa1ne oHanso 1t can
mt nov ba safely estimntel. Another phase Of
tAo case Ia, should Judge Biodgott appoint now
force in thoir attempts Ia gain possession Of tho
property Of tue Company.
MEETING OF RAILWAY MANAGERS.
A meeting Of Hallway Managers OF tho Wost-
orn roads connecting with Now York was held
in Now York City last Thursday, for the purpose
Of completing the work begun at Saratoga to
harn,onizo tho conflicting interests Of tho dil-
fercnt roads. Representatives. from tho
following limos wero present: hllchl-
gan Central; Lako sAoro 4 Michigan
Southern; Toledo, Wabash i Wcatern; yandalia
Line, indianapolis Bloomington 4 Western,
Pittsburg, Cincinnati { st. Louis; ponuHylyania
ccntral and branclos; Atlantic l. Great Western,
aud Grand l. lnliana. The Hon. J. G. Cox, Of
the Toledo, Wabaoh d Western Railroad, was
elected Chairman, and MIR. J. Green, of tho
Ponnsylrania Railroad, Secretary. Tho Now
York Tribune Gays tho discussion wna conducted
in a aomi-conyorsnttonal manner aud free dis
cusslon was allowed especially on tho matter Of
rofcrring question: Of dispute to arbitors to bo
sc!octcl from mon who Ind held no direct intor-
cot IN any particular railroad, aud who would
tEolelol0 Ro lgapArtial In Their lapiuiQua. Tho