Telegram-herald., 1888-03-24
AROUND THE STATE.
IMPORTANT RAILROAD DECISION
a Victory for the Common Stockholders
of ths r. = 4. NJ fsthsr's Terri
bls Brst@nsy-othsr miehi-
g1s Matters

DErRoIr, March 23-United States Judge
Jsckson's opinion ip the squsbbls between
the preferred aud common stockholders Of
the Flint Pers Marquette Railway. which
has been looked forward 10 with 80 m ueb
anxiety, was handed down In the United
States Circuit Court this morning. In
substance il is ss follows:
The common stock holders are 10 have the
relief asked. They are entitled 10 De ad-
mitted into the Company ss regular
Directors. AMI 10 have minority representa-
tion on The Board Of Directors. whieh right
accrued 20 the complaining stock holders
and others Of their class on January /,
1856. The opinion continues that there Is
q suffeieney of funds from the sale Of
granted lands 10 pay the deficiencies 10 the
annual dividends on preferred stock for
i've years prior u lsS6, and TO raise The div
idends paid 10 per cent. per annum since
1Ss6. THESE deficiencies were II per ce1t..
OF $50 10. for 1851 Il per cent. or s3l.7l0.
for 1857 aud per cent, or $3.50 DO for
1885, making total Of $654 30. TIE com
pany Is therefore ordered TO pay this sum
pro rata TO the preferred stockholders. so as
10 make up the full Z Per cent. dividends
for hye years, and thus comply with the
conditions, as the management should
mon stockholders are entitled 10 be admit
ted as regular common stockholders. The
company is also ordered 10 issue regular
certIIic2tes for common sock 10 the prOFis-
ional stock holders and cnjoined from de-
priving them of their ri shts ia voting or
otherwise and from applying income or
earnings of the company 10 Improvements
OF permsnent nature without the common
stockholders consent.
The decision really gives the Boston par
| ties headed py John w. Mcintosh one
third Of the property, which is valued al
| s.. 800, 900.
| The company is ordered 10 issue the
| sharss of stock in lieu of the certificates Of
| the same held by them, and the court en-
| Joined the company against denying the
common stockholders the right TO vote on
their stock. In holding the land grant
fund applicable for the dividend deticien-
| cies the court also held thnt IL should be
| paid out by other funds if not enough in
the land grant fund. The court also de-
| clared the purchase of the Port Huron &
| Northwestern railroad by the Flint d Pere
| Marquette without warrant of law. and
| granted an injunction againstthe purchase,
| observing, however. that after the common
| stock holders had eajoyed the right 10 vote,
| the matter might be recopsidered.
The decision Is Il complete victory for the
| common stockholders upon every point. Ii
| is not improbable that the conflicting inter
terests may now be settled by agreement
| without taking an appeal TO the Supreme
| Court OF the United States. as the preferred
| stock holders will not be sorry to get $780,
| or 100000 by order If the court which
| otherwise the directors never would have
| paid. and which they would not get if the
case was reversed on appeal. The acquisi-
| ton OF the Port Huron road may be
| accomplished bv agreement, which, il is
conceded woulo De valuable thing for
| the company.