The Saline County journal. [volume] (Salina, Kan.) 1871-1893, 1889-10-17
rHarRaILwaY sea EnE.
The Municipalities viii Resist the At
tempt 20 Freese Them Out.

The Municipalities win Resist the AZ.
tempt 10 Freese Them Out.
Readers Of the JOURNAL will bear
Ia mind the sccount published In
these columns two weeks ago about
a meeting held at wichits TO con-
slider the course to be pursued by the
counties which had voted aid TO the
G. n. q X. Ry., that they might not
be cheated out OF their stock. A
subsequent meeting was arranged
10 be held at Topeka last Friday.
saline county was represented AT
this meeting by County Attorney
Blair aud County Commissioner j.
w. Burke. The proceedings were
very interesting.
r ID. Smith, OF Meade Center,
reported on behalf Of the committee
appointed to investigate the status Of
the foreclosure proceedings Against
the Rock Island that they found in
the record Of the United States cir
cult court q case Of foreclosure Of
the Chicago, Kansas a Nebraska
railway under the mortgage given
by that company 10 secure payment
OF what was to be designated rs first
mortgage bonds at the rate Of tl5,-
600 per mile for single track, 5000
for double track and 5000 per mile
for Rolling stock on the entire road,
providing among other things for
the payment Of semi-annual inter-
est thereon at the Office Of the mort
gagor, and I'm default Of such pay
ment the principal Of all bonds
should at the election of the trustees
become Immediately due; that
under such mortgage at different
times the Chicago, Kansas aud Ne
braskA railway company has issued
in bonds at different times and sold
In amount and at par value s35, 49,
OOO, that interest COUPONS to the
amount Of sI3l ,5O7, due January !,
1879, were not paid and remain un-
paid, and coupons amounting to-
upwards Of 500, 900 due In July, lSS9,
have not been paid; that the holders
of q ajOrity Of said bonds are
alleged 20 have requested the iDsti-
tuition of an action OF foreclosure
which was commenced August 9,
1859, at Topeka; that the Chicago,
Rock Island 4 Pacific II operating
the read by assignment Of contract
Of lease by the So. Joseph a lows
company, date OF May, 1888
that by the terms OF said lease the
Chicago, Rock Island q Pacific COM
paDy agree to pay thirty per cent Of
the gross earnings Of the road Ne
rental; that In an accounting since
the first day Of last January between
the Chicago, Kansas q Nebraska
and the Chicago, Rock Island 4 Pa
cifie if was ascertsined that the Chi
cago, Rock Island q Pacific was the
owner Of the past three coupons Of
the Kansas City q Northern; that
on the first Of January, 1889, there
was due on said coupons the sum OF
81 ,s4T $50 aud that the rental
amounted to sl,Il6, Az, which was
applied TO the payment Of past due
coupons, leaving t43l ,5O7 unpaid.
Both Of defendant roads I'm their
answers filed admit everything
In the bill OF complaint.
A committee was then appointed
to walt upon the firm Of johnson,
Martin Il Keller, who had been pre-
viously consulted regarding the
legal status Of the case. Captain
] Johnson was brought before the
and spoke at length regard
ing the situation. He said that
there was only one plan by which
the counties interested could posi-
bly, save themselves. That Vas by
going into the court and file an In
on the part Of these mu-
In these foreclosure pro-
and ask to be made q party
to the suit; that they then show
that the foreclosure IL entirely un-
necessary and part Of q general
scheme on the part Of the C., X. 4 ".
railway company TO get rid of its
stockholders. Every
body knew, he said, that the bscker
OF the C., X. q n. company was the
Chicago, Rock Island 4 Pacific, one
Of the most solvent companies now
in this country. These
he said. had paid their
money and they should not be froze
out In this way. The question arose,
what was the necessity Of bonding
this road for the immense amount
which has been placed upon it?
What had become Of all this money
He believed An investigation would
show either that the municipal
were owners Of q ma-
lority Of the stock or that o large
portion OF the stock was issued to
fictitious parties.
IL seemed TO be the unanimous
opinion Of the gentlemen present
that . fight should be made and u
was decided TO resist the foreclosure
Captain johnson said the Rock
Island were not playing . game Of
his kind for fun and the fight would
have to be q hard one. He advised
hem that q fund OF s25, 900 be raised
10 conduct 70.