The Indianapolis journal., 1886-12-08

fore the sale. the value Of the Wabash property
than the four indorsers and others represented
by the purchasing committee
Touching upon another serious charge against
the receivers, Judge Gresham said:
The mines and other property OF the Ellis
worth Coal Company are adjacent to the Wabash
railway. The original stock of this company
was S24 O00 which was increased in June, 1885.
to $6I,5 Humphreys. Gould. Dillon, Sage.
Hopkins and Charles Ridgiey, all directors in
the Wabash company, were stockholders in the
coal company. 1t does not appear from the evil
dence that any one else held stock in this COM
pany. During 1885 the receivers purchased OF
the coal company coal amounting to $3.50 769
and later l45, l9l TONS for $l63 724 which was at
the rate of $3.50, 900 for the year. The receivers
have paid out OF the earnings $15, ,401 rebate on
coal shipped by this company prior to their ap-
pointment and while the Wabash lines were
operated by the Missouri Pacific. under the lease
to the Iron Mountain company This they
claim to have done under the orders of the
court at st. Louis They have also paid
bates of $63,309 on coal shipped since
their appointment and up TO Sept. l,
1886 The total rebates paid by the
receivers to the coal company amounted to $780,
I'll which is more than the entire capital stock
of the coal company. There is evidence tending
to show that the price of coal purchased for use
was too high and that the freight upon the coal
shipped was too low. The relation which these
two corporations sustained to each other exs
posed the owners of the stock and directors OF
the coal company to the suspicion OF intending
to benefit that company at the expense of the
Wabash company
Passing to the question of jurisdiction and the
right to remove the present receivers, Judge
Gresham said:
sit is insisted for the purchasing committee
and the receivers that. when the Wabash bill
was filed at st. Louis, and the court there ap-
pointed receivers, it acquired paramount
jurisdiction over the Wabash property and sys-
tenn throughout its length aud breadth, and thai
all persons including creditors whose bonds are
secured by senior sectional mortgages on prop
erty part of which is in the State of Mis-
souri, must go to that court to enforce their
rights and liens, and that no other court can re-
move the receivers. If by the mere force of it's
own orders the court at ST. Louis acquired legal
custody of the entire Wabash property, it would
be alike the duty and the pleasure of this court
to aid that court In the exercise Of its primary
jurisdiction, but this court feels obliged to take
a different view of its duty and the law Cases
may be found in which English courts have ap-
pointed receivers over property or estates in
other jurisdictions and foreign countries, but
this has been done only when the parties inter
ested in the property were personally before the
court and subject TO its orders"
Judge Gresham decided that he had jursdic-
ton, for the reason that the bulk of the proper
ty covered by the mortgage in question was
chiefly In this district, and that a proper show
ing had been made on behalf of the mortgages
for which foreclosure was asked. He held that
they should be forclosed and the present receiv-
ers be removed Leave was therefore given to
the mortgage bondholders of 1862 and 1879 to
file bill in the United States District Court at
Springfield asking for receiver for their proper
ty. II was held that the application for the ap
pointment of receiver for the Chicago division
of the system could be filed here, and would be
entertained They were. it was held, entitled
to such receiver and their case, from the show
ing maze, was good
Prominent counsel from New York, St Louis
and Chicago were present.