The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1878-12-25
THE DEBENTURES.
The Formal Order of the Court Authorize
ing the Receiver Of the st. Paul e. PaciE>
Road tn TSsue Nehe Mt

The Formal Order of the Court Authoriz-
ing the Receiver Of the st. Paul e. Paciks
Road to Issue Debentures.
In the matter OF debentures in the payment
of the st. Vincent and other extension lines of
the st. Paul u Pacific railroad, in the United
States circuit court, the following order was
made and filed Yesterday:
At a stated term OF the circuit court Of the
United States held within and for the district
OF Minnesota, at the city of st. Paul, on the
10Th day OF December, A. d. 1878:
Presentation. John f. Dillon, circuit Judge
and Hon. r. r. Nelson district Judge.
John $. Kennedy ct al VS.. the st. Paul q Pa
chic Railroad Company ct al.-In equity.
The receiver herein having made and filed his
report of his proceedings under the order of
May 81, 1878, in the construction of the unfn-
ished lines of the Saint Paul & Pacific railroad
and the petition of George Stephens and his
associates named in said order having been
made and presented to the court praying for
the issue of debentures as in said order provid-
ed, and the matter stated in said report having
| been referred to H. E. Mann, ESQ. as special
master to examine and inquire into the same
| and report the result Of such inquiry and ex-
animation to the court, and the said master
having filed his original and supplemental re
port thereon; and due notice having been given
to all parties interested of the hearing before
said master, and before the court; and all the
assents and agreements required by said order
of May 81, 1878, having been duly filed;
And it appearing to the court from the said
report of the receiver and the said petition,
the certificate of the Governor of Minnesota,
| and the reports of the said master, and evil
dence returned Herewith, that the lines of rail
road OF said company from Melrose to Alexan-
dria, and from Crookston to st. Vincent and
the international boundary line at Emerson
have been fully completed in accordance with
| the terms OF said order, and have been accept
ed by the Governor of the State of Minnesota
as completed in compliance with the terms of
the legislation of Congress and of said State
granting lands to aid in the construction
| thereof;
And it being further represented
that said lines have been constructed
at the aggregate price of $l,Ol6,3O0, and the
actual cost of said roads not having yet been
fully ascsrtained. And the petitioners having
filed the duly authenticated assent of the
Dutch committee named in said order and of
the new trustees in the $4,000, 900 mortgage
aforesaid and of John S. Kennedy and John S.
Barnes, trustees named in the agreement be-
tween said Stephens, Smith, Kittson and Hill
and the said Dutch committee to the issue of
debentures as prayed in said petition and the
defendant, the Northern Pacific railroad COM
paAy and the defendant the S.. Paul & Pacific
railroad company, having consented in open
court to the granting of said petition, and
after hearing George B. Young, coun-
Gil for the . petitioners, in sup
port of said petitioners: and
Fl. r. Bigelow, Esq, counsel for the defend
| ant the first division of the St. Paul & Pa
CHIC railroad company in opposition thereto,
and none OF the other defendants nor any 9th
| er person having appeared to oppose said pc
titon:
1t is ordered that Jesse P. Farley, ESQ.,, the
receiver herein. be and he is hereby authorized
and directed to issue to said petitioner his de-
bentures in sums of not less than 81 900 each,
to the amount of $500, 900.
And it is further ordered that the debentures
to be issued under the order shall be first lien
in preference to the mortgage of April l, 1871,
and subject only to the debentures out
standing of the issue of $lO0,0O heretofore
made by the receiver under the orders herein,
! August l., 1878. and September l, 1878,
on all and singular the parts and portions of
the lines of road of the St. Paul g. Pacific rail
| road company repaired, built and completed
under and by virtue of the said order Of May
3D. 1878, extending from Melrose to Alexandria,
and from Crookston to St. Vincent and Emer-
son on the international line in all 1875 miles,
and on ali of the lands granted by the United
States and the State of Minnesota appertaning
to the said road between Melrose and Alexan-
dria, and between Crookston and the interna-
tional line which the road sorepaired, built and
completed under the said order of May 81,
1878, was the means of earning and acquiring,
but not u lien on such portions of the road as
We're fully completed before the said order of
May 81, 1878, made; nor upon
lands which were fully earned before
the court in the final decree shall otherwise or
| der and ad udge-the intent hereof being that
| the lien of said debenture shall not be less
than above prescribed but such lien may be
| extended when the final decree is rendered, if
such extension of the lien shall then be found
to be just and equitable.
The debenthres to be issued shall bear
| date Dec. l, 1878, and sha.l - payable on or
before three years from said date at the option
of the receiver, and shall bear interest at the
| rate OF per cent. per annuln, payable semi
| annually on the lst day of June and December
| in each year at the American Lxcnange Ma
tionsl bank in the city of New York, according
to the terms of interest coupons to be thereto
| annexed and signed by the receiver. Both
principal and interest shall be payable in the
gold coin of the United States Of the present
| standard of weight aud fneness, and the earn
ings of said railroad, after deducting taxes, the
| operating expenses aud necessary repairs and
| the expenses Of the receivership, and after
| making the provision for such prior debentures,
are pledged to the payment Of such principal
| and interest. r.
Such debentures shall be attested by the seal
of the court, shall be signed by the receiver
| and countersigned and registered by the clerk
! of the courts, and shall be in the form follow
ING 81.
ST. PAUL. Mimi. Dec. I, 1878.
Three years after date, unless sooner paid,
ceiver of the st. Paul & Pacific railroad, promise
to pay to George Stephen his assigns, the of
- dollars III gold, with interest at the rate of
eight cent per annum, according to the tenor of
coupons hereto annexed, at the American Exchange
| National bank in the ctyt- Jew York. Failure to
pay interest for six months will make the principal
due at the option Of the holder if the court shall
| order.
This obligation is issued under and pursuant to an
order of the circuit court of the United States for the
district of Minnesota endorsed hereon, and is not
valid unless countesigned by the clerk Of said court
i and sealed with the seal thereof.
IL Seal Receiver
| [ Court. ------ -,
| .~,r--..a Clerk.
It is further ordered that when the receiver
shall have reported to the court q statement in
detail of the actual cost of the said lines under
the order Of May 81, 1878, the petitioners may
L al