Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-01-22
4 Railroad Burst.

There was trouble yesterday all along the
line on account of railroad transactions on the
line of the Chicago, Portage and Lake Superb
OR Air Line company's road, in which the
Anglo-American Construction company is
mixed up; and it is also reported that some of
our st. Paul merchants who have been fur
nishing supplies are sufferers to certain ex-
tent The facts Of the case were kept as quiet
as possible yesterday, but as well as could be
learned the following were picked up:
1t appears that Barnes & Co., the New York
publishers, together with man named Jackson,
lawyer of GAINESVILLE, Wis, seem practically
the owners of the charter Of the company. In
recognizing the company for the construc-
ton of the road last fall, the Grand Trunk
railroad of Canada became interested through
representatives, and one of the first acts of the
new company was to give to Barnes 81 Co. and
Jackson 100000 paid up stock. The Anglo
American construction company, which was
organized to build the road took the contract.
This company was provided with cash credit
in Chicago, land could, few days ago, draw for
a quarter of a million of dollars. if necessary.
They had sub-let q part of their contract,
and on the northern end of the road had
1,500 men at work. Supplies and con-
structiOn material were bought in st. Paul,
Duluth, Minneapolis u Superior City. Yes
terdayilt was quietly reported in st. Paul that
the railroad company was gone up, the con-
structiOn company suspended, the sub con-
tractors out, and that those from whom sup
plies were purchased were left with very
poor chance of getting their pay. When these
facts came out, there was a hurrying to and
fro in st. Paul, and some of those who had
furnished some of the supplies left st. Paul
suddenly to look after their interests.
To go back a little in the history, of this
business, it may be stated that Barnes & Co.
and other stockholders Of the Portage COM
pany did not know of it, but there
was statute provision in Wisconsin, which
gives the paid up stock in each corporation
absolute and exclusive control. Jackson, the
lawyer, of course, knew this. Furthermore,
as the attorney in fact of Barnes & Co.,, he
held the whole of the million of paid up stock
and thereby held full control of the companys
affairs. Another incident in the situation is
that a part of the st. Croix g. Lake Superior
railroad grant to the state of Wisconsin, con-
sidered to be very valuable, was to be earned
by building railroad between Chippewa
Falls and Superior. The Portage company
had begun the construction on this line
from Superior City southeasterly,
and the Chicego, ST. Paul &
Omaha company had begun the construction
of the same line from Chippewa Falls, and
from Veasie northwesterly, or towards Super
ior City. Both companies were applicants for
the land grant before the legislature. jackson,
who represented the paid up stock, and who
was absolutely master of the Portage charter,
and President Porter of the Chicago, st. Paul
& Omaha company got together, and bargain
was made for the sale of the Portage charter,
to Porter, of the st, Paul & Omaha company,
for $1,000 cash. After some few days delay
in spite of remOnstrance on the part of Barnes
& Co., and the representatives. of The Grand
Trunk, jackson completed the transfer and
turned the charter over rs Porter. This, of
course leaves the Anglo-American Construc-
ton company out in the cold, and with them
all the sub-contractors and probably those who
furnished the supplies.
The failure OF this company falls pretty
heavily upon some of the wholesale deal
ers in st. Paul. The company was re-
garded generally as very solid, and all
were anxious to sell to it. The loss, how
ever, is not confined to st. Paul, but ex-
tends to Minneapolis and Duluth, and to
many other towns all along the line
of the proposed road A good
many do not hesitate to say
that the company was organized for the
purpose of raising money and that it was
the intention to buy On credit all that it
was possible without any intention of
paying.
IL 40 AhAPOoolUlC " Stdtc Will accuracy
the loss in st. Paul. It will. be large
enough for all practicable and convenient
purposes and good deal larger than will
be agreeable.
1t was also announced that as one re-
suit of the railroad smash, the firm of
Smith, Campbell & Co., the leading gro
Gerry and general merchandise house of
Brainerd, had failed. They had heavy
line OF credits in st. Paul, and the mer-
chants here are extensive losers. 1t was
estimated late last night that their in
debtedness in st. Paul would not fall
much below $4,000. A meeting of the
creditors will take place tomorrow