Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-12-21
THE DEBENTURES.
The Formal Order of the Court Authorize
ing the Receiver of the st. Paul g. Pacific
ff,T NoIa

THE DEBENTTRES.
The Formal Order of the Court Authorize
ing the Receiver of the st. Paul g. Pacific
Road to Issue Debentures.
In the matter Of debentures in the payment
of the st. Vincent and other extension lines of
the st. Paul & Pacific railroad, in the United
States circuit court, the following order was
made and fled yesterday:
At 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:
Present-Hon. John E. Dillon, circuit judge,
and Hon. r. r. Nelson district Judge.
John S. Kennedy ct al VS.. the st. Paul d Pa
cltic Railroad Company ct al.-ln equity.
The receiver herein having made and fled 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 81. 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, 1873, 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 Alezan-
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 $1,0l6,300, and the
actual cost of said roads not having yet been
fully ascertained. And the petitioners having
fled the duly authenticated assent of the
Dutch committee named in said order and of
the 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
pany and the defendant the ST.. Paul & Pacific
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
Ell. r. Bigelow, Esq. counsel for the defend
ant, the first division of the St. Paul & Pa
cihc railroad company in opposition thereto,
and none of the other defendants nor any 9TH
er person having appeared to oppose said pc
tition:
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 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 now out
standing of the issue of 100000 heretofore
made by the receiver under the orders herein,
August 1, 1878, and September l. 1873.
on all and singular the parts and portions of
the lines of road of the st. Paul & Paoifc rail
road company repaired, built and completed
under and by virtue of the said order of May
81, 1878, extending from Melrose to Alexandria,
and from Crookston to st. Vincent and Emer-
son on the international line, in all 1875 miles,
and an on all Of the lands granted by the United
States and the State Of Minnesota appertaining
to the said road between Melrose and Alexan-
dria. and between Crookston and the interna-
tlOnal line which the road SO repaired, built and
completed under the said order of May 81,
1873, was the means of earning and acquiring,
but not a lien on such portions of the road as
were fully completed before the said order of
lands which were fully earned before
said 31st day of May, 1878, unless
the court in the final decree shall otherwise Or
der and adjudge-the intent hereof being that
the lien of said debenture shall not be less
than as above prescribed, but such lien may be
dad !bef fin SC 6
such extension of the lien shall then be found
to be just and equitable.
The debentures to be issued shall bear
date Dec. /, 1873, and shall be 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 annum, payable semi
annually on the lst day of June and December
in each year at the American Exchange Ma
tional 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 fineness, and the earn
ings of said railroad, after deducting taxes, the
operating expenses and 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.
Such debenturos shall be attested by the seal
VI GiiO Cuulo, slldlA pS elSueu ny tle receiver
and countersigned and registered by the clerk
Of the courts, and shall be in the form follow
ing
No.
ST. PAUL. MINI Dec. /. 1878.
Three years after date unless sooner paid, as re-
ceiyer of the ST. Paul Il Pacific railroad, promise
to pay to George Stephen his assigns the sum of
dollars in gold, with interest at the rate of
eight per cent. per annu, according to the tenor of
coupons hereto annexed, at the American Exchange
National bank in the city Of New York. Failure to
pay interest for six months will make the principal
due at the option of the holder if the court shall SO
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 countersgned by the clerk of said court
and sealed with the seal thereof.
\ Seal Receiver.