, 1874-07-03
THE RAILWAY LITIGATION 1T mAn1sou

4.
II gradual reduction OF Huch ratoa Of toll Ina beo
10 made. amounting to 20 por cont reduction o
passenger rates md % por cont on freight rate.
IL .. Ihat tho revenues Of tho Company fror
az sourcoa under the tatos of toll xod by thay
mover boen auff}olcnt to pay tho necessary OK
: ponac OF maintaining tho road and its oqulnmon
IN proper state Of repair and oiIlclonoy. and Il
pay tho snteraat 'rnn tla hnndn siyuu for mona,
r notually invostod In tho construction, and INV
dividend upon money actually invested In tbt
oep'ta' stook to m o1tont equal to the Lawful
: ratos OF interest In Wisconsin, u
u. Tint tho average amount OF the dIyldenda
pa'a ny sald Company since juno, 1884, oithor
IN money or stook,, was tho ratio Of 6 B7-1oO
per cont on it's preferred stock, vbol
s'ock amounts to s21, ,484.113, and tho ra.o OF
s7o-1oo por cent on tho common stock, au,ount-
ing to Sl4,o99,0Go. That no dividend at all
elsnof in money or atoch. has boon uaado i,non
lse common stock since Dooomber, 1879, whom
tno dividend was 813 per cont, and that no div
aona mas boen maao on tho preferred etook
stnco Juno, 1879, when tho dividend was 816 mr.
cent.
g. Ihat tho total cost Of the railroads of th;a
Company is s05,o9o,so5. The total oarninua for
tho year 1873 uoro e19,s1e,4o4., or thoze caarn-
1ngH, at least 10 per cent aro REQUIRED tn nav tha
operating expenses OF tho railways. leaving
tho sum Of s4,144,09 applicable to othor
purposes. The total debt Of tho Companv
is .s29,o41, 800. Tho cost Of tho ro,d
over. and above tho amount Of tho debt il
7s6'44o,s0o. The total cost Of tho who1c svaton, !
OF railroads. ownod by tho Chicago d Morrill, !
"cstern Company ia statod at ss1, $50, ss9. ..rbo
total earnings OF oil the roads operated hv thu
North"eatorn for tho year 1873 woro e14. .o55. os9
ooaucting 70 por cont for operating expongoa
'oaVes tho sum Of s4,4se,51o applicable to thu
payment OF ronts upon leased soade, jntareat m
oeot, and dividends to atockholdora. TIN
amount OF tnteroBt paid during tho yoar 1R7e
upon the bonds Of the Company wos o. oo4 7aa
OF which 81 ,ss5,696 was paid in gold. Tho sum
lets for paying dividends to stockholders anil
1or repairing the road aud completing tho ooujp-
n'ens' and paying ronts, WAS s1,4s1,729. The
amount actually paid for renta during 1873 vaa
sv2e'a2 leaving but s5b2,2o5 applicable to
dividends.
Upon these facts hlr. Cook. In hia arc,,n,o,+
poiofo tho Court On Wednesday, c1aimod that It ,
was evident that tho revenues Of tue companv ,
aa not amount to aum sufficient to nav anv- ,
'hlne Ake lawful interest upon tho suma Of =
money actually Invested by tho stockholders. ;
u was claimed, and for tho purposes Of tie caso
'onia nos 30 controVorted, that the rates flxod
y tho Legislature of Wisconsin by thu cct ~
daroh, 1874, will reduce tho royennoa o. ~, :,
'ens which reduction would, of course, bo taken -
rom tho net earnings Of the Company, Tie RI. :,
ult produced might DO thus stated:
eGss tn4arniangs, m 1s79.: oas
f~ 0A''''''''''.'-'..'..-... a,73s, 1853
urosg earnings under the 81 ON o7x
"os op's"an8 expenses. l0308S2s at
Not cummings undor tho 1aw,,,,,s ~ 771o u
Iho debt OF tho Company is 81, ,8os, 500. and II II
10 annual Interest," thereon is $s,ooa7so. The aa ~
!" OF Wisconsin would leavo only s747. .75a of -
10 easn1ngs Of tho Company with which to INV W
at Interest," aud nothing for dividends, unon ~
as exhibit OF tho setual condition of TIN Com. OF
NY 'ts earnings, operating oxponsos, and tic III
oct OF tho law upon it's .oyouuos the ouest;on 1o1
In
'oago d Northwestern Railrond Company waa r
sofpofated under Boveral acts Of tho Legislature I'm
sn VARIOUS powors; it had borrowed 1arco oo1
aB OF money Tor tho construction aud couin. Ia
mt OF its roads; those Huma Of monoy bod n ,
IN loaned to tho Company undcr tho lavs NJ ~,
stasoi these ]aws secured to tbe Comnanv :.
right no to operate Its roads as to 1orivo n ~.
onao thereffom sufIloont to pay tho lntorost dro
IN tho money thus borrowed, md provide n t.,
sonao'o SINKING fund for tho payment thereof. ~,
oer those circumstances, the question beforo ~.
conrt was this Had the Legislature Of wia. 49,.
eln tic constitutional right to pass an NH 49,,
ch would make it impossible for tho Railway H.: @
npany to pay the interest upon its debta or M,
pay nny dividends whateyor to tts stook- .,.s 49,,
lera? t'"o'
rubt
hls Ia unquostionably strong presentation rooe
ae caso The statement Of tho debt, stock. take
1ngs' operating expenses, and other expopdf- man
OF tho Company, aro givon in detail. md avoo
ahlfmed, from tho books Of tho Companv ;no
+ paying tho lntoroet on its debt an1 cuh,
,o.a ~ ~ 'oa9oa roads, tho Com and
= III 1878. Ind but about half million with,
III from which to pay tho d1yidends and Kill +
'leto tho construction md equipment Of tts to ho
l. Ihe law OF tho Legislature Ia calculated to ondu
~ o19o '''af'S 'our millions ofdol!ara, cisod
ne tie Company without tho means to INV with
.11' ~. WV 'ots uoo1a It was authorized jaw.
'''A'Ao VI 1aat State to contract mtsca
W DESTROYING tho orodit of tho Company, souve
cndorng its property uaoloHs and yalueleae Inn IL
ho puspoaoa for which It was doslRuod, co]]oo
tho Legislative powor Of tho State extend fr,oni,
|ar7 This "a the legal question presented Loa
Court by this case. brujue
- fort, t
"a WV ''''@o"s OF MILWAUKEE,, John No. somo
>. nus "eseaEea LUG o1hor day for being traino
=. a"a nulsanoe' Ao haa not washed his old ca
hands for si1 mouths; his fnger-nails ton lo