Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-01-25
THE BUSINESS RACKET.

Return of the st. Paul Visitors to Duluth
"A Statement of What They Found-The
Assets and Liabilities of the Embarrassed
Firms-An Eyes Now Turned Toward
the Wisconsin Legislature-A Committee
Appointed to Go to Madison.
The parties who went up to Duluth
and Superior to attend to their claims
against the firms who had been engaged
in furnishing supplies on the Chicago,
Portage s. Superior railroad, returned
yesterday morning. 1t seems that they
all got there Saturday night or Sunday
morning, and during the day a conference
was had with the debtors, at which it was
found that the firm Of Campbell 6 Smith
was perfectly solid and worth ever $10, 900
above their debts, and that Mr.. Geo. M.
Smith was perfectly solid and worth from
&c. 900 to $4,000 above his debts, but
that the firm of Smith, Campbell & Co.,
composed of the firm of Campbell &
Smith and Mr.. Geo. M. Smith, was badly
involved unless they should prove
able to collect the amount
due them for supplies, which was over
$41, 900. It twas found that the parties
were indebted substantially as follows:
Geo. M. Smith, about. ...............$ $500
Campbell & Smith, about ............ 23,832
Smith, Campbell & Co., about. $4,000
From which it appears that the credi-
tors of Smith, Campbell s. Co. were like
ly to lose largely while the creditors of
the other companies would not suffer at
all. This feature of the matter produced
some disagreement among the creditors,
and their conference resulted in unan
nous conclusion that the parties
ought to make an assignment
covering all these companies, but not
unanimous on the proper basis for distri-
button. It ought to be said here that the
debtors, Messrs. B. F. Smith, Geo. III.
Smith and II. A. Campbell, attended this
meeting and expressed their firm deter
mination to protect all the creditors with
out preferring any over the rest, and to
do anything that could be done towards
securing the largest amount for all. Con-
sequently, Monday evening an assign
ment covering all three establishments,
was made to Charles E. Bostwick, of Du-
luth. The property in Superior was at
tached early Monday morning, but 1t
is understood that so soon as the matter
is thoroughly understood these suits will
be withdrawn and all parties will acqui-
esce in the assignment. 1t is generally
believed that the legislature of Wiscon-
sin, now in session, will not part with
control of the land grant pertaining to
the Chicago, Portage & Lake Superior
line until the labor and supply claims
growing out of the grading of that line
are paid or secured. A delegation from
northeastern Wisconsin, st. Paul and
Saltwater are to visit Madison at once
and Law the facts before the legislature
to that end, and it is firmly
believed that there will be little or no
difficulty in securing that result. The
land grant in question pertains to that
from Veasie.
The largest contractor on the lower
end of this line was F. Erickson. He
haze been known so long and so favorablY
in this state that he was enabled to OBJ
tain what he needed at st. Paul and else
where without question. He had force
of about 500 men and he now finds him.
self with that number of men on his
hands in absolute want and in very
FESTIVE condition, they having received
no money for the December or January
work except two payments aggregatlng
about $4,000. He owes them still about
$4,000 and other parties about $40, 900
for supplies. When he learned ct the
suspension of the railroad company he
stopped the supplies which were in transit,
put his outfit in charge of his men by way
of pledge to try and raise money enough
to relieve their immediate necessities.
1t is understood that there is DISPOSE
ton to help him out to that extent and
if the state of Wisconsin does what is
right in the premises Mr.. Errickson's
affairs will come out all right without any
loss to anybody. The course taken by the
legislature of Minnesota under somewhat
similar circumstances would be good
model for the legislature of Wisconsin to
pattern after. 1t will be remembered that
Gov. Pillsbury threatened to veto the bill
for the transfer of the land grant of the
old St. Paul & Pacific Railroad company
to the present organization unless fair
provision was made for the payment of
the claims growing out of the partial
construction of that road.
The Northwestern folks have been all
this season grading road over substan-
tally the same route as the Chicago,
Portage & Superior road between Veasle
and Superior, with view of competing
for the land grant before mentioned and
strangling the Portage company, and it is
sufficiently obvious that Mr.. Porter has at
least partially accomplished his purpose.
He seems to have defeated the Portage
company in all their attempts to negotiate
their bonds, and he seems now to have
got control of the company for 5000, 900,
which notably is the amount of the de-
post made by that company with the
state to guarantee the building of the
line.
The Northwestern people are all well
known in Minnesota to be pretty fair
men and no complaint can be made
against them, for the efforts they have
made to get possession of this line, as it
formed a natural part of their system
and it is believed that they would not
undertake to gobble up that enterprise
at the expense of the laborers along the
line and the Minnesota and Wisconsin
merchants, if they could get along with
out loss and pay such claims. The
main difficulty of arranging the
matter to the satisfaction of all parties
will probably arise from the fact that the
Northwestern folks, during the last sea-
son, have spent a large amount for
grading a road over the same route and
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