The Manitowoc tribune. [volume] (Manitowoc, Wis.) 1866-1878, 1875-01-14
MEET THE ACQUIRING INTEREST

| ISb VI y uIe IdSt, GudG tu0Y QOlQ Oal
ance In hand with which to
! MEET THE ACQUIRING INTEREST
for 1st of December last the sum of
$40, ,665. .72, which being insufficient for
the purpose named, application was
| made to the Wisconsin Central, under
| the terms of the. lease, to make good the
| shortage, which they neglected and re-
fused to do saying they are unable to
find the money. Complainants show
that the earnings Of the Northern road.
| so paid over by the Wisconsin Central
| to the bank and now held for interest
| accrued, belongs to the bondholders
equally, and should be distributed pro-
trata, unless the Wisconsin Central shall
make good its obligations IN the mean
time; that neither the Wisconsin Central
nor the Phillips & Colby Construction
Company has paid the interest maturz
ing on the bonds in December last; that
the amount remaining unpaid thereon is
$S6, 200; that the Milwaukee & Northern
has no property under it's control or
possession that can be levied upon; and
the latter corporation is inolYent. Furth-
er, the complainants aver That they are
informed and believe the Wisconsin
Central is
UNABLE TO PAY THE INTEREST
due on it's own bonds, its debt amount
ing to several millions of dollars, that it
is greatly embarrassed, and if allowed to
relain these Northern earnings the same
will be in danger of being lost to the
bondholders; that the Wisconsin Central
has given out that it cannot pay interest
on it's own bonds without borrowing
money and that it is unable to borrow
money for the purpose of making good
its receipts from the Northern.
The complainants next show that the
property covered by this deed of trust
is not sufficient to meet the amount OF
indebtedness it is intended to cover,
both the Wisconsin Central and Phil
lips & Colby Construction Company
neglecting to employ sufficiently large
body of men to do the work necessary
to keep the roadbed, rolling stock etc.,
in sufficiently good and safe condition,
owing to which the property mortgaged
is greatly depreciaiing in value.
Complainants state they are owners of
said bonds in the following proportion:
Hoyt 100000, and Greenleaf $4,000,
and that in commencing this suit they
are acting on behalf of bcndholders to
the extent of $5OO,OOO as well as for
themselves. That
TIE EARNINGS OF THE NORTHERN ROAD
for the past year, as reported by the
Phillips & Colby Company, amount to
$f2O, 900, and that by reason of the re-
ported great liabilities of that company,
they greatly fear lest the money remain
ing in their hands be misapplied. That
the omission to pay the December. in
terest has greatly deprecated the market
value Of the bonds; that if the defend
ants, knowing this, as they must do,
have been able to pay the sums due, and
have neglected purposely doing SO, they
troll of the property, and that for these
and other reasons the complalnants
ought, as trustees for the bondholders,
to insist on their len; that Wisconsin
Central is bound under contract to
complete the fencing of the Northern,
1892. 81 on acbount of such contract,
but has never completed it, whereby the
property is subjected to great loss and
damages by straying cattle, and such
like.
Wherefore, complainants pray that
receiver be appoting to the property so
mortgaged to them as trustees with
powers to effect repairs, he to pay over
surplus earnings prorata to the bond
holders; for an order compelling the
Wisconsin Central to pay over the short
age on half yearly interest for December
last, and in future, if any there should
be; that the funds now in hand be pro
rata to the waiting bondholders, and
that the Phillips & Colby Company and
Central Company pay over all moneys
belonging to the Northern now in their
possession.