The Findlay Jeffersonian. [volume] (Findlay, Hancock County, Ohio) 1870-1881, 1876-07-14

I
the fact, that prior to the ID of June.
1854, the stock of the Chicago d North
western Railway Company was almost
worthless, and possessed no real and in
trinsic value whatever.
Your orator would further represent
that, at the time of taking possession of
the Galena IL Chicago Union Railroad,
there was large amount of money in
the treasury, and some forty or fifty
bonds Of the Beloit K Madison Railroad
Company among its assets, which had
not been used in the construction of the
road; that these bonds were immedi-
ately sold and the proceeds applied by
the said Chicago d Northwestern Rail
way, and all the money of the Chicago x
Galena Union Railroad Corporation was
also appropriated to the use of the said
Chicago and Northwestern Railway
Company. ,
Your orator would further represent
unto your Honors, that the Galena &
Chicago Union Railroad Company had
always, prior to the I'd day of June,
1864, paid out of its earning all eX-
penses for running and operating the
SAID railroad OF every name and nature,
ana the interest upon its bonded in
debteIness, and each year provided
sinking iund of many thousand dol
lars, which would liquidate all its
bonded Indebtedness long prior to its
maturity, and has, for a number of
years last past, paid dividend of not
less than 6 per cent. to each and every
one of its stockholders, upon the
amount of stock held by them, and
that its stock was on the I'd day of
June. 1864, worth from one hundred
and forty to two hundred and forty
seven dollars per share.
"And Samuel j. Tilden, are the
same persons who are hereinbefore re-
ferred TO as being specially inimical to
the said Galena & Chicago Union Rail-
road Company, and the rights and in
terests of your orator, all of
whom, your orator charges, were hos
tile to the best interests of the said
Galcna y Chicago Union Railroad
Company, and were secretly and fraud
ulently conspiring with the Chicago &
Northwestern Railroad Company
did, by and with their connivance, and
i'll fraud of the rights of your orator,
and the stockholders of the said cor
porntion, fraudulently take possession
of all of the property, rights and priv
ileges and franchises of said Galena 4
Chicago Union Railroad Company
And the said Tilden, as attorney and
director of said road, has recently
caused said stock of the Peninsula
Railroad Company to be exchanged
for stock of the Chicago & Northwest
ern Railway Company, on the follow
ing terms, to-wit: For every share of
one hundred dollars of the stock of
said Peninsula Railroad, the Chicago
& Northwestern Railway Company eX-
changes or gives fifty dollars of pre-
ferred stock, and fifty dollars of com
mon stock, which they specially issue
for said purpose, thereby watering and
diluting the stock of the Chicago &
Northwestern Railway Company to an
extent wholly beyond precedent
in fraud of all the rights of your ora
tor and all stockholders similar to
himself including II, 900
shares of stock which they had issued
on the pretense of paying for the Ken
eshee & Rockford Railroad, which
cost them about $500, 900. and various
other matters and things of like char
acter und your orator is
informed and believes that there has
been an over-issue of stock on various
pretexes and pretenses by said Chicago
81 Northwestern Railway Company,
which have not yet been reported to
the stockholders of some two or three
millions of dollars
cl,ol
Julius WADSwoRTH.
"HERvIY, ANTHONY & GAIT,
Solicitors for Complainant.
"a. w. ARLINGTON, of Counsel.
STATE OF NEW YORK,
"City and Co. of New York,
son this seventh day of January,
1865, personally appeared before me-,
the above-named Julius Wadsworth,
and made oath that he has read the
above bill of complaint signed by him,
and knows the contents thereof, and
that the same is true of his own knOwl-
edge, except as to those matters which
are therein stated to be on informa-
tion and belief; and as to those mat
ters he believes them to be true.
"JAMEs A. WEIGH.
NOTARY Public.
Residing in the City and County
of New York"
Co.
The result of the trial on the above
complaint is stated in communica-
ton of Mr. Nathaniel Norton to the
Chicago Tribune, as follows:
"EditOrS Chicago Tribune:
''Will you be 50 good as to publish
the following for the benefit OF all
whom 1t may concern:
"The case of Julius WadswOrth
was commenced by him Mt the request
of the stock and bondholders of the
Galena 4 Chicago Union Railroad
Company, and, although an injunc-
ton was not granted, yet an order was
entered by the Court equivalent there
to-yiZ:
Finally, those stockholders of the
Galena Il G. U. X. r. Company who
have exchanged their stock in ignOr
ance of their rights can now be restored
and the bOndholders saved from im
pending ruin by joining in the efforts
which are now being made to set aside
the pretended consolidation which
was accomplished by trickery and
fraud, while the public can be res
cued from the despotisIn of the most
gigantic and heartless monopoly ever
attempted to he fastened upon n free
people by making proper efforts to
sustain those who are now engaged In
contending against this self constituted
monopoly. All of the certificates are
now in the hands of William Il. Og-
den and Samuel ]. Tilden, ready to be
given up in case the consolidation
should be declared invalid.
NATHANIEL NORTON,
Chairman of the Committee
THE PENINSULAR RAILROAD.
This road was incorporated in 1862
and subsequently built. After the
consolidation of the Galena & Chicago
Union with the Chicago & Northwest
ern, the Peninsular Railroad was
merged into the same consolidation on
the basis of one-half share of common
stock and one-half share of the prefer
red stock of the consolidated company
for one full share of the stock of the
Peninsular. In 1866 Mr.. Jas. Parton
published pamphlet entitled a ''Man-
ual for the Instruction of Rings, Rail-
road and Political, in which he treats
particularly of this Chicago & North
western Ring, and gives the following
as an estimate of the profits derived
from the consolidation of the PENN
sular Railroad:
They obtained guarantee OF
| Sl,O29, 600 of bonds, issued at
seventy-five cents on the dol
lar, which Mr.. Ogden reports
were worth par. There is
/ rrnfif nf SO-.H .In