St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-06-29
Increased Competition ano
the Interstate Commerce
Law the Causes.
A Brief Statement Of the Con-
dition Of the Roads
Finances.
Cooley's Interstate Commits.
sion Dismisses Two Mime
sofa Complaints.

Louis company to meet the June inter-
est payment ON it improvement and
equipment bonds, and the reports that
have been in circulation for some
time concerning its financial condition,
have been indications of the approaching
crisis which yesterday eliminated in
the application to the district court of
Henry Selbert, trustee, successor to the
Central Trust company, of New York,
for the appointment of a receiver. In
creased competition and the effect of
the interstate commerce law can be at
tributed as the chief causes militat-
ing against the roads prosperity.
In May the board of directors resolved
to make no payment of the interest on
the bonds which should become due on
the 1st of June. Default was made as
to interest on the consolidated improve
ment and equipment bonds in January
last: an investigation made by the hold
erS of these bonds developed claim
that the earnings made by the rolling
stock and other property which had
been acquired with the proceeds of those
bonds has been applied in the payment
of interest on the bonds secured by
older mortgages. The majority of the
holders of the improvement and equip
ment bonds resolved to dispute the right
to make such application. This could
be done only by suit to foreclose the
mortgage in which receiver could be
appointed to take charge of the prop
erty of the compay and hold and prop
erly account for its income. Of four
out of seven mortgages which are liens
upon the property, the Central
Trust company, of New York, is the
trustee. The majority of the holders of
the improvement and equipment bonds
requested the Central Trust company to
resign its trust under the improvement
and equipment mortgage. upon the
ground that an attempt by it to assert
their rights would bring the trustee in
conflict with itself as trustee in some of
the other mortgages. The trust COM
pany. declined to comply with this re-
quest and steps were Immediately
taken by the holders of three fourths of
the bonds to remove the trustee and
elect successor in the manner pro-
vided by the mortgage. These proceed
ings eliminated on the 25th of the pres
ent month by the election of Henry Sci
bert, of New York, as successor to the
trust company. Mr.. Seibert, as soon as
the record of his appointment was
made, notified the Minneapolis IL st.
Louis Railway company that the princi-
pal and past due interest of the i'm
provement and equipment bonds were
due and demanded payment of same.
The sum demanded exceeds s., 1000, COO
and compliance was refused.
THE COURTS ORDER.
Judge j. NJ. Shaw and E. NJ. Wilson
appeared before Judge Young, repre-
senting the plaintiff and j. d. Springer
the defendant, in the morning, in the
matter OF application for receiver
When.the following order was granted:
That the court being satisfied that said
railway company is inSolvent and that
the Improvement and equipment
mortgage in which the plaintiff
is trustee, is not adequate security
for the principal of the bonds
issued under it; that said company
has already made default III the
payment of the interest which has ac-
crued and become payable on the said
bonds, as well as upon other bonds Sc
cured by other mortgages; that it APP
pears that moneys, which it has re-
ceived and continues to receive, which
should be applied to the payment of in
terest on the improvement and equip
ment bonds, have been, and if said COM
pany remains in possession of its prop
erty will continue to be, applied on 9TH
er obligations; that there is no reason
to apprehend that because of
the cOmpany's insolvent condition
it will be INSTRUCTED in the performance
OF Its duties as common carrier, to the
great injury and inconvenience of the
public, the company and the creditors;
therefore, grant said application; and
does hereby appoint and constitute
William III. Truesdale as the receiver of
this court, charged with the perform
ance of the duties incident to the office
of receiver, and especially those herein
after stated: First. To assume possess
sion of all property, moneys and assets
OF the said railway company; to man.
age and operate its railway and appur-
tenant property, and to receive and re-
ceipt for all moneys which are now or
shall hereafter become due and PAYABLE
to it from any and all persons and cor
poratiOnS whOmsoever.
Second-To cause to be prepared and
sumitted to the court statement of the
liabilities of the corporation, including
its debts secured by mortgage or other
lien and its other debts.
Third-TO carefully keep and pre-
serve all property and moneys which
shall come into his hands as receiver; to
operate and manage said railway aud
its appurtenant property with view
to securing the best results prac-
ticable under the circumstances.
Fourth-To keep full and true &C
counts, showing all receipts and dis
bursements by him made, which account
shall commence on the 1st day of July
next.
Fifth observe and perform, until
otherwise ordered by the court, all obi
cations assumed by said railway COM
pany in the traffic and running arrange
mentS and leases as the same have been
hitherto observed and performed by
said railway company; and especially
to observe and perform those set out in
divisions 8, Is, 10, 20, %, "a, % and 26 of
the complaint.
1t is further ordered that the receiver
is authorized to disburse out of mon
eys which shall come into his hands as
receiver, so much as shall be necessary,
in payment of the legitimate expenses
incurred in operating and maintaining
said railway and its appurtenant prop
erty, but that no other disbursement
shall be made until ordered by the court;
that for the convenience of adjustment
the existing accounts of the railway
company shall be closed as of the 3Oth
ances then due thereon to the rail-
way company shall be paid to the
receiver and debited to him in his ac-
counts as of the lst day of July, 1883.
The receiver hereby appointed will
execute as principal, with two sureties
to be approved by the court, a bond in
the sum of 100000 conditioned that he
will faithfully perform his duties as
such receiver. Mr.. Truesdale filed
bond for the above amount during the
afternoon, with John T. West and
Charles Nee. Reeve as sureties.
THE COMPLAINT
filed by Trustee Seibert sets forth all
the mortgages, traffic arrangements,
leases and other charges upon the prop
erty of the Minneapolis 81 st. Louis Rail
waV pOmnanV and in yubiol, oIIaooJ