The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1875-01-14
NORTHERN RAILROAD.
Important Suit Brought by the
Trustees Of the Bondholders.
A FULL HISTORY OFTHE LEASE TO
THE WISCONSIN CENTRAL.
Proceedings to Compel the Latter Com
pany to Pay Over the Receipts
of the Northern.

|
of the Northern.
Prayer for the Appointment of Recsivee.
From the Milwaukee Sentinel Jan. 9, 1875.
jesse Hoyt and Warren Greenleaf of
New York, yesterday commenced suit
| in the Uaited States Circuit Court
| against the Milwaukee & Northern Rail
way Company, the Wisconsin Central
Railroad Company, the Wisconsin Ma
rine and Fire Insurance Company Bank,
and the Phillips & Colby Construction
Company for foreclosure of mortgage
and other purposes.
THE BILL COMMENCES
by relating that the complaints received,
on or about the 1st of December, 1870,
from the Milwaukee & Northern Rail
way Company, to be held by them und-
er trust deed, 2405 bonds, of which
500 were for $500 each, and 1905 for
| $1,000 each, all of said bonds being pay
able twenty years after date, with inter
est at s per cent, payable the 1st of
June and 1st of December yearly. That
as soon as said company completed and
equipped its railroad, complainants, I'M
| der the terms of the trust deed, paid
over each and every of said bonds to the
! Milwaukee Construction Company, by
which company the construction and
| equipment were performed, in part pay
ment Of their contracts, and said COM
pany thereupon sold and delivered said
| bonds to divers individuals who now
| hold them as an investment. That to
secure said bonds, and the payment of
| interest thereon, the said company ex-
ecuted and delivered to complainants, a
deed transferring and assigning to them,
| in trust, the whole of the first division
of the railroad, namely from Milwaukee
| to Green Bay, and all branches, or ex-
tensions, of said trunk railroad, that
might be built to Lake Michigan, Lake
| Winnebago or Fox River, with all move
able and immoveable property connect
ed Herewith, such trust to endure until
the payment of the bonds in full; the
deed containing all the usual provisions
of first mortgage.
The biM then sets forth the due re-
cording of the deed, the completion OF
the first division, and its various
branches, and connections with other
railroads, and then proceeds to recount
THE HISTORY OF THE LEASE
| of the company and all its property, on
the 9Th November, 1878, to the Wiscon-
| sin Central Railroad Company, for 999
years, and the surrender of the whole
| under such lease. Complainants charge
that the Wisconsin Central Railroad
| Company, In some way, made over the
said property to the Phillips & Colby
Construction Company, but under what
contract or agreement, or at what date,
complainants are unable to state; and
that the latter company now claims to
be in full and sole possession of said
road, is operating the same, and receiv-
ing the income, profits and earnings
thereof. That said Phillips & Colby
| Construction Company, as complalnants
believe, is incorporated with q capital
of only 100000, for the purpose OF con-
structing the Wisconsin Central Rail
road, and must have incurred in the
construction of said road large liabilities,
but whether the said company Is In
solvent or not the complainants do not
know, although they are advised that all
enterprises of that nature are labOrlng
under very great embarrassment; and
they charge the fact that said Milwau-
kee & Northern Company was leased
| subject to the provisions Of the afore-
said trust mortgage, the Wisconsin
| Central covenanting to render each
month statement of the gross earnings
of the Northern, and to pay over 25 per
cent. of such gross earnings to the Wis
consin Marine and Fire Insurance Com
pany Bank, to be by them held in trust,
to pay interest on said bonds, and should
this percentage not be sufficient to pay
such interest as it fell due, the said
Wisconsin Central was bound to adv
ance whatever sum was wanting, and re-
pay itself out of future earnings when
ever it could. That
THE WISCONSIN CENTRAL MADE DEFAULT
with its deposits for the months of June
and July last, and, instead of paying in
to bank money with which to meet the
accruing interest coupons, offered Id
lieu thereof interest coupons on bonds
maturing June 1, which it had III some
way acquired and which had been taken
up @ After giving some further par
ticulars of the same kind, the bill then
proceeds to relate the amounts paid over
to the Wisconsin Marine and Fire In
surance Company Bank by the Wiscon-
sin Central Company (being 35 per cent
of the gross earnings Of the Northern)
to meet the interest accrulng On the
bonds of the latter, as already stated
which payments are as followsx
December, 1873 S., ,592.
January and February, 1874 .--.-.-... 1s, IL, s
March, 1874. ...-.. IL. 45S. 49, 4; 4
April, 1874. 4..-.....-.-. .-..t-.---. ~, NV. =
DEPOSITS in coupons for August, 1874. 9, ,727. 81
September 18Th 19'1-Io-S ~ ~ q