St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-12-08
Represented by the purchasing committee"

represented by the purchasing committee"
Touching upon another serious charge
against the receivers, Judge Gresham said
''The mines and other property OF the ELS
worth Coal company are adjacent to the Wa
bash railroad. Tho original stock of this
companv was $4,000. which was increased in
June, 1885, to S67. 500 Humphreys, Gould,
Dillon. Sage, Hopkins and Charles Ridgely,
ALL DIRECTORS IN THE WABASH COMPANY
were stockholders in the Coal COMPANY. 1t
does not appear that any one else held stock
in this company. During 1853 the receivers
purchased OF the Coal company &C a. amount
ing to $50. 100 and later l+5.l9l tons Tor Sl63,
724, which was at the rate OF S35U,0 900 for that
year. The receivers have paid out OF the
earnings $50 4Ql rebs tie on coal shipped by
this company prior to their appointment 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 rebates of 500. 500
on coal shipped since their appointment and
up to Sept. l, 1885. The total rebates paid by
the receivers to the Coal company amounted
to $50 Gil, which is more than the entire capi-
tai stock of the coal company. There is evi-
dPnce tending to show that the price for the
coal purchased for use was TOO high and that
the freight upon the coal ship ped was too low.
The relations which these two corporations
sustained to each other exposed the owners
pany TO the suspicion OF intending to benefit
that company at the expense OF the Wabash
company.
ON THE QUESTION OF JURISDICTION
and the right to remove the present receiver,
Judge Gresham said: ''lt is insisted for the
purchasing committee that when The Wabash
bill was fled mt St. Louis and the court APP
pointed receivers it acquired paramont jur-
iSdictiOn over the Wabash property and sys
tenn throughout its length and breadth and
that all persons, including creditors, whose
bonds are secured by senior sectional mort
cages on property, no part of which is in the
state OF Missouri, must go to that court to
enforce their rights and liens and that no
other court can remove the receivers. If, by
the mere force of its own orders the court at
ST. Louis acquired the legal custody of the
entire Wabash property, II would be alike
duty and pleasure to this court to aid that
court in the exercise of its primary juriSdc-
ton, but the court feels obliged to take diff
ferent view OF its duty and the law. Cases
may he found in which English courts have
appointed receivers over property or estates
in its jurisdiction and foreign countries, but
this has been done only when the parties in
terested in the property were personally be-
fore the court and subject to its orders"
JUDGE GRESHAM DECIDED
that he had jurisdiction for the reason that
the bulk of the property covered by the
mortgages in question was chiefly in this dis
trict, and that proper showing had been
made on behalf of the mortgages for which
foreclosure was asked He held that they
would be foreclosed and the present receivers
be removed. Leave was therefore given the
mortgage bOpdholGers of 1852 and 1879 TO file
bill in the United States district court at
Springfield, asking for a receiver for the
property. 1t was h Id that the application
for the appointment of receiver for the
Chicago division of the system could be filed
here and would be entertained. They were.
it was eld, entitled to such receiver, and
their case was good. Prominena counsel
from New York, st. Louis and Chicago were
present.