St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-12-31

since the refusal of the court some time ago
to separate the divisions, certain of his
clients had asked to have the application
newed, and would furnish evidence to sub
stantiate their position. He then said that
he mad received a telegram from st. Louis
that the purchasing committee were to pay
S1,000000 in sixty days and give
security to pay Sl,000,000 more at the end of
another sixty days. Henry Crawford, attOr-
ney for the first mortgage bondhoiders,
jumped to his feet and said that he, too had
received adyices from St. Louis that the court
had ordered the property turned over to
Judge Cooley. A controversy ensued among
the attorneys. Judge Gresham stopped it
and said it was unnecessary to carry on the
argument longer. He found no reason to
modify the order he had previously made.
The court said no tenders had been made, and
it was not proper to act in so important a
case unless tenders were formally made in
writing by the authorized parties. For these
and other reasons he should refuse TO modify
his decision, and Judge Cooley, the new re-
ceiver would take possession of the Chicago
division on Dec. 81. Judge Cooley furnished
new bond for the Chicago division as re-
ceiver 1t was in the sum of $40, 900, and the
sureties were Walter Crane, w. H. Wells and
Otto Kirchman. The new receiver will take
possession of the Decatur & East st. Louis
and all the lines East of the Mississippi.
JUDGE BREWER Is UGLY.
ST. LOUIS, Doc. oU.-1O anticipation al
important opinion by Judges Brewer and
Treat on the affairs of the Wabash railroad
to-day a large number of prominent railroad
officials and attorneys were present at the
opening of the United States circuit court.
Judge Brewer, Immediately upon the opening
of the court. said that during the last two
| DAYS the receivers of the Wabash railroad
had reported to the court the recent decision
of Judge Gresham and that the court had also
received
PETITION
from the purchasing committee W itch he then
proceeded to read. The petition concluded
as follows: Wherefore, your petitioner pray
that this court will direct that all the prop
erty purchased by them as aforesaid be
turned over and delivered over to them, ard
that this court will prescribe the terms in
compliance with which your petitioners may
receive possession of said property and will
fix the time within which your petitioners
may exercise discretion to receive posses
sion under the terms of their said contract,
and to comply with such orders as this court
and the courts having auxiliary jurisdiction
may make.
preliminary to statement of the orders to
Receivers Tut and Humphreys, and the
passing upon the petition of the purchasing
committee, Judge Brewer referred to matters
| in the history of this litigation. He explained
| that the Wabash system ran through several
| states and the jurisdiction of several courts.
| One general mortgage covered the entire
property, and there were underlying mort
cages upon several local lines wlch had be-
| come part of the Wabash system. Foreclosure
proceedings were begun in this court as the
| court of
| PRIMARY JURISDICTION.
| and the receivers had been appointed by this
| court. OF the propriety of the foreclosure
| proceedings in one court operating the
entire property running through several
| states the validity of the sale under
| such proceedings, and the completeness
of title under such sale, there could now be
| no doubt. In the case of Miller VS.. Bows (94
| L. s., D. 444, that question was put at rest.
| In the early history of foreclosure proceed
| ings of this nature, it had been customary. in
| order to avoid all questions of title and to
| preserve the property from dismemherment,
! that the receivers appointed by the court of
| primary jurisdiction, Should also be APP
| pointed by courts of auxiliary jurisdiction.
| This had been done in this case, and the pro-
| pliety of the appointment of Messrs. Tut
| and Humphreys had been proved by their
| excellent management of the property.
| "As appears from certified copies" Judge
| Brewer continued, ''presented to US, the Cir
| cult court of the Seventh Judicial circuit,
| DISREGARDING THE Comfy
| that has heretofore existed between federal
courts, has removed these receivers and has
| appoi hted distinguished citizen of Michigan
| as their successor for the lines within the ju-
| risdction of tIat court. l say in disregard of
| the comfy which existed between courts of
| different circuits, for the pretext of enfOrc-
! ing local liens is too transparent to deceive
| any one, and for two reasons. There will be
| no line extending through various states
| without the creation in those states of local
! liens by mortgages or otherwise. and secon dly
a foreclosure of these liens may proceed in
! dependent of any receivership. That court
| is of equal Jurisdiction with this, and we dis
| ri nj
The practical question now is what is to be
| done. 1t is the
DUTY OF THIS COURT
to see that the property left in the hands of
the receivers appointed by this court is fully
protected. The power of fOreclOsing the gen.
eral mortgage and of apportioning the receiy-
erS certificates remains with this court. and
! it is fittir that sueh apportiOnment should
be proceeded with at once. In the decree for
| sale there is no attempt at foreclosng the
underlying mortgages. and the purchasers
took the property subject to these obliga-
tions but did not assume them. The sale
had been made and the deed for the property
| given as provided by the decree, the posses
sion is still in the receivers and to be held by
them until these obligations are paid or Sc
curity for their payment is given. We are
aware that in the management of so vast a
property some time must be taken in the
arrangement of details, but the time is now
come when the court shall demand the pay
ment of these obligations on the giving of the
security
The judge then read
THE FOLLOWING ORDERS:
First-The receivers will relinquish all
| roads east of the Mississippi river to Receiver
Cooley. We understand that there are lines
east of the Mississippi river not within the
terms OF that order-rOadS that begin no.
where and end nowhere. It also appears
that every one of such roads except one has
been operated at loss. So the order will be
that they cease to operate all lines east of the
! Mississippi river whose earnings shall be less
than expenses. unless they are given within
| thirty days guaranty against loss in the OPP
| GRAFTON of such lines.
SecondAThey viii deliver to Receiver
Cooley all books or accounts of such roads.
! lut will retain possession of all general books
! or accounts, giving Judge Cooley every facll-
| ity for their examination.
| Third-The receivers will retain possess
sion of all moneys in their hands or that may
hereafter come into their hands from the
earnings of the roads under their manage
ment, or from the purchasing committee SUBJ
| iect to the orders of this COURT
| Fourth-The receivers will surrender to Be
ceiver Cooley all rolling stock covered by the
| mortgages on the lines surrendered and they
will report all disputes regarding such trans
fer to this court.
! Fifth-The operations of the lines in the
hands of these receivers will be independent
of all other lines ana the receivers will make
the best arrangements possible with Receiver
Cooley and all other parties, for the transfer
of business.
sixth-The officers and employees under
them will confine themselves to such employ
| meut In other words if there is to be any
independent administration by the receiver,