St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-05-28
The MIXED MOTOR MATTER.
Statements by Interested Parties.
An Old Case.

Statements by Interested Parties.
An Old Case.
Beyond the statement from Gen. w. S..
| WaShburn of his connection with it, there
was little of interest developed yesterday in
| the matter of the petition for receiver for
the Minneapolis, Lyndale & Minnetonka
railroad, better known as the motor line.
From the fact that some of the interest
coupons of the bonds of the road were not
paid. the Farmers Loan and Trust company
Of New York representing the holders of a
| majority of the bonds, viz, S170, 900, rep
resented to the federal court at st. Paul,
that it believed the Motor company insolv-
ent and asked that receiver be appointed.
The petition sets forth that in April, 1881,
the railroad company turned over to the
loan and trust company, under trust
| deed, all its property and franchises to
| secure its first mortgage bonds, which
| aggregated S170, 900, at per cent, run
| ming thirty years, interest payable semi
| annually. The petition further AYERS that
the mortgage deed further contained a pro-
vision that in case OF default for six months
| in the payment of interest, the principal of
the bonds may be considered DUE Two
| coupons must in the meantime, however,
have been presented for payment and re-
fused. 1t is alleged that default in the in
terest was made on Oct. last, and again
on April 1; whereupon the petition is now
filed. It is now developed that Gen. Wash
burn is the owner Of a majority of the
bonds, and the suit on behalf of the Far
mers' Loan and Trust company is in reality
his. Statements from the parties interested
are as follows: r..
THE ROADS ATTORNEY.
| Capt. J. N. Cross, said yesterday the
bonded debt of the company is $27O, 900
and the floating debt $3.50, 600. 1.-The com
pany has splendid property and little
| time is all that is needed to work out of the
Indebtedness. 1t is now just entering upon
one of the best earning seasons that has
been in the history of the road. The earn
ings this year will be from $500 to $780,
600, of which not over $40, 600 will be re-
quired for running expenses. Allowing
for all contingencies there ought to be at
least net income of $500 Out of this
only about SIG, 900 will be required to meet
the interest on the bonds. Col McCrory
has already secured most of the floating
debt by mortgages Oh his own property.
From this time on it will not cost nearly as
much to keep the road in good condition as
before, and there is no reason why the COM
SJ.
or both the bonded and floating debts Be-
sides this we expected to put in cable line,
similar to the one in Chicago, from the
union depot to point over the hill on
Nicollet avenue and to extend the line to
Fort Smelling. So far as the receivers suit
is concerned, l know nothing, for there
have been no papers served on ME yet.
| understand that those making application
for receiver want G. f. Hatch appointed.
The first move that l will be required to
make will be to appear to answer to an
order to show cause why receiver should
not be appointed After this 1 have one
month to file an answer. You may say
that the effort to secure the appointment of
receiver will be resisted with all possible
diligence, and the interests of the floating
debt will be carefully looked after"
WHAT GEN. wASHBURN SAYS.
| In talking of the matter yesterday Gen.
! Washburn said that while he for some time
had been contemplating the securing of a
controlling interest in the road, it was only
recently, after negotiation with the New
York owners of the bonds, he had agreed
to purchase. There will probably he
said, ''be other Minneapolis capitalists as
ISOLATED with me. But before / had taken
any step towards purchasing the bonds I
learned that proceedings for foreclosure had
already been instituted by the Farmers
Loan and Trust company to receiver one
| years interest, amounting to about ZIG, 600.
did not stop the proceedings, and when