Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-12-18

why debentures should not be issued to the
amount used in the construction. All parties
consented except the first division company.
It must be assumed and supposed they had an
interest. The court then related the history of
the application. The State legislature had
forced matters to crisis, and compelled the
company to construct certain lines within
specified time, Aug. 30, and on failure the
bondholders would lose the right to certain
land grants, and be only secured by fragments
OF lines and lots of land. Representations of
parties holding interest had been made to the
court. The question was, what should bedone?
1t was idle to suppose the first division could
do anything. Had it been left to them. mat
ters would have remained at standstill, and
the lapse of time would have worked the for
feiture of all rights and franchises. and the in
creased securities thereby. Messrs. HILL Kilt
son and others represented they had control Of
twelve million of the bonds; they wanted au-
thority to finish the lines and thus secure the
increased securities for the whole line. The
court stated that was exercised in selecting
two competent PERSONS to examine into the
matter, and report. They reported in favor of
the issue of debentures. It was of
material Importance if authority was
given to construct the extension lines,
that money would be advanced for
the purpose. This was necessary to avoid
all or any complication. If debentures were
issued it was idle to suppose that at the pres
eEt depressed condition of business the public
would supply the money. The parties who ap-
piled for authority represented as capt.
tallsts, and would furnish the money either
themselves or on their credit. 1t was necessary
to get the owners to build the road. It wa
hard for court to build road. Judge Brad
ley had tried that in a Southern circuit, and
had complicated the affair unfortunately. In
consequence Receiver Farley got the order to
build the road on moneys advanced by parties
in interest, to build to the extent of the mon
md tpho tho ~
stop. The road was to be built on the money
actually supplied, and NJ lien was to be given on
the road for money advanced. The court pre-
scribed the limit of $4,000 per mile. Under
this order the road has been constructed and ac-
copied by the Governor. 1t is done.
CIhe court then quoted the order in full to
| show all its requirements, etc.
Resumlng the court stated that under the
| order it was left to the receiver to build the
road. 1t was supposed he would make con-
| tracts for work, grading, material, etc. But he
had made contract for all the work with
one contractor, MIR. Robbins. This contract
was never submitted to the court. The court
held that under the circumst noes the court
| would have approved it, and that the work was
done under this contract successfully. The
court characterized it as achievement in ju-
dicial procedure never before accomplished,
and by no act of this court would it be marred
so as to give rise to any criticism.
| The court could find no rea-
son to object to legitimate profit.
not excessive profit, in the contract
satisfactorily accomplished. It was
contended that the parties furnishing the
money were interested in the contract, in other
| words. there a credit mobi2ier in it. This
| feature was examined and fonnd not true. As
it was held that Robbins not a capitalist,
| and had never built a road, SO,
in justice to parties in interest,
to ascertain the full or actual cost of the road,
debentures would not be issued in the full
| amount asked But the money had been
advanced, it was but just that they should be
partially reimbursed. For this purpose
SSOOOOO debentures ordered with leave
for the petitioners to apply for further issue
when the cost of the road was ascertained.
The court further referred to the matter,
| stating the purpose was to issue these deben-
lures in as large amounts practicable, not
less than $1,000.
Third-In respect to the suit on coupons.
The court saw reason for a continuance, and
declared it would stand for trial. Subsequent
ly, by agreement of consent, the matter went
over to come up with the foreclosure suit in
March.
After the order was made there was general
breaking up and shooting away of the several
legal luminaries. The GLOBE asked several on
the fly what they thought of the Decree aud in
each it answered.
Highly satisfactory.