Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1876-07-20

Kenosha & Rockford Railroad, Il
miles in length, which did not pay,
was selected, and was, as detailed in
the petition of Julius Wadsworth tO
the United States Court for $500, ,00t
and consolidated for 81, 100000.
IMPORTANT CHARGES AGAINST GOV.
TILDEN.
The case of the consolidation of the
Galena & Chicago, Union d Kenosha,
and Rockford Rords with the Chicago
& Northwestern, is completely set
forth in the following complaint of the
Hon. Julius Wadsworth, who was a
Trustee for the original Calena bond.
holders, and also acted for the stock
holders:
"YOur orator further represents that
prior to said time the said Samuel j.
Tilden, of New York ,and others to your
orator unknown, concerted together,
operating through Mr.. Crokers, of New
York City, procured the proxies of a
large number of the shareholders for
the election of Directors of said Gelena
& Chicago Railroad Company,
that it was on the dsyaf stockholders
meeting suddenly presented by VIM.
B. Ogden, and those persons above
mentioned acting with him, and voted
upon in a viva vOce manner by proxy,
and, without any notice to your orator,
and a great number of the sharehold-
ers, representing nearly two millions
of dollars, declared passed.
"YOur orator represents that said
Galena & Chicago Union Railroad was
the first railroad which was construct
ed leading to and from Chicago, and
the first of any importance whatever
that was constructed in the State of IL
linOis; that said railroad corporation
had been for many years SO managed
and controlled that it had acquired a
great reputation for trustworthiness
throughout the United States and Eu-
rope, and its stock and bonds were pur-
chased and held as most reliable, safe
and permanent investment by various
parties throughout the United States
and Europe.
"Its gross earnings per mile for the
fiscal year 1868, ending Dec. 81, 1868,
were $S.S08, ,42 pere mile, and net earn
ings $3,675,9S per mile; and under the
iudicious, careful and economical man
agement which characterized said rail-
road up to June 2, 1864, would soon
have surpassed that of any other rail-
road in the Northwest.
"Your orator further represents, upon
information and belief, and 80 charges
the fact, that prior to the I'd of June,
1864, the stock of the Chicago & North
western Railway Company was almost
worthless, and possessed no real and
intrinsic value whatever.
"Your orator would further repre-
sent that, at the time of taking posses
sion of the Galena & Chicago Union
Railroad, there Was large amount of
money in the treasury, and some forty
or fifty bonds of the Beliot & Madison
Railroad Company among its assets,
which had not been used in the con-
struction of the road; that these bonds
were Immediately sold, and the pro-
ceeds applied by the said Chicago &
NorthwesterH Railway, and all the
money ofthe Chicago q Gelena Unie
Railroad Corporation was also sppro-
priated to the use of the said Chicago &
Northwestern Railway Company. y
"Your orator would farther represent
unto your Honors, that the Galena &
Chicago Union Railroad Company had
always, prior to the 2d day of June,
1864, paid out OF its earnings all expen-
ses for running and operating the said
railroad of every name and nature, and
the interest upon its bonded indebted
ness, and each year provided sinking
fund of many thousand dollars, which
would liquidate all its bonded indebt-
ness long prior to its maturity, and
has, for number of years last past,
paid dividend of not less than 6 per
cent to each and every one of its stock
holders. upon the amount of stock was
on the I'd day of June, 1864, worth
from one hundred and forty to one
hundred and forty-seven dollars per
share.
land Samuel J. Tilden, ARE the same
persons who are hereinbefore referred
to as being specially inimical to the said
Galena & Chicago Union Railroad
Company, and the rights and interests
of your orator, X. all of whom,
your orator charges, were hostile to
the best interests of the said Gelana &
Chicago Union Railroad Company, and
were secretly and fraudulently conspi-
ring with the Chicago & Northwestern
Railroad Company, did, by and
with the connivance, and in fraud OF
the rights of your orator, and the
stockholders of the said corporation,
fraudulently take possession of all of
the property, rights, privileges and
franchises of said Galena d Chicago
Union Railroad Company. And
the said Tilden, as attorney and direc-
tor of said road, have recently caused
said stock of the Peninsula Railroad
Company to be exchanged for stock of
the Chicago & Northwestern Railway
Company, on the following terms, to
wit: For every share of one hundred
dollars of the stock of said Peninsula
Railroad, the Chicago q Northwestern
Railway Company exchanges or gives
fifty dollars of the preferred stock, and
fifty dollars of common stock, which
they specially issue for said purpose,
thereby watering and dilutlng the
stock of the Chicago & Northwestern
Railway Company to an extent wholly
without precedent in fraud of
all the rights of your orator and all
stockholders similar to himself,
including 14,000 shares of stock which
they had issued on the pretense OF pay
ing for the Kenosha & Rockford Rail-
road, which cost them about $500, 900,
and various other matters and things
Of like character, and your ora
tor is informed and believes that there |
has been an over-issue of stock on va
rious pretexts and pretenses by said |
Chicago & Northwestern Railway |
which have not yet been re-
ported to the stockholders, of some two |
Or three millions of dollars.
"And your orator shall evry pray.
"JULIUS WADSwoRTH,
''HERvEY, ANTHONY & GAIT,
''Solicitors for Complainant,
"a. w. ARLINGTON, of Counsel.
Estate OF New YORK,
'City and County of New York, 90
"On this seventh day of January,
1865, personally appeared before me,
The above.named Julius Wadswerth,
and made oath that he has read the