St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-06-14
Sensational Suit to Prevent
the Sale Of Chicago's
Stockyards.
Stakeholder Baker Applies
for an Injunction and a
Receiver.
Bay State Senator's Votes
Quoted at Ten Thousand
Dollars Each.
Chicago Politicians Buy Civic
Election Repeaters at Fifty
Cents Apiece.

CHICAGO, June 13.-The anticipated
suit to prevent the consummation OF the
proposed S2O,OOO,OOO sale of the Union
Stockyards and Transit company OF
Chicago to an English syndicate was
commenced before Judge Tuley this
afternoon. Decidedly sensational
charges are made in the bill, and the
court is asked to remove the present
officers of the big corporation, appoint
receiver and issue an injunction re-
straining the proposed issue OF
bonds and the sale of the plant
and stock. The c6mplainants in the
bill are Frank R. Baker, a dealer
at the stockyards, and the owner OF
over $50 shares Of the capital stock OF
the company. Mr.. Baker makes de-
fendant. Nathanial Thayer, of Boston,
the company's president; John B. Sher-
man, general manager; George L.
Williams, secretary and treasurer. >.
G. Dennison, assistant secretary, and
six of the best known railroad magnates
in the United States-John Newell,
Marvin Hughitt, ]. M. Mccullough, j.
C. Mcmillan, II. B. Stode, R. r. Cable
and Stuyvesant Fish, directors of the
Union Stock Yards and Transit COM
pany. Other defendants are Russell ii.
Monroe and Richard Olney, promoters
of the enterprise,
To Buy the Yards;
the London Contract company Qimited)
to whom it is purposed making the sale,
the Central Trust company, to which
mortgage was to be given, and William
K. Vanderbilt, Cornelius Vanderbilt.
John R. HoXie, of Texas, and James IL.
Ashley, who, with President Thayer
and Manager Sherman, own majority
of the stock. The bill charges that it is
that the defendants are seeking to carry
out the scheme of selling the property,
but that, on the contrary, they are
inspired with the sole intention
of selling it in for little
over half its actual value; that
they then propose to depreciate the
value of the stock and run the property
down in value until it reaches mini
mum. Then, when the small stock
holders are frozen out, it is said, the
manipulators will buy the plant and
good will in it for a mere song. Mr.
Baker declares that the company's
stock is actually and intrinsically worth
5000 share, whereas, the proposed pur-
chase price is $50, of which only the
bare par value SlOO is cash. The scheme
proposed authorizes all issue of $10,-
100000 of bonds. and the complain
ant asks that when only $6,6OO,-
900 of this are to be paid the stockhold-
ers. where is the respectable sum OF
S3, 100000 balance of bonds going to?
He then answers the question himself.
He asserts that they are going into the
Pockets of the Company
couspirators. A further objection is
that the London Contract company and
the Central Trust company are alien
corporations over which the court can
exercise no jurisdiction. 1t is said that,
being British company, the proposed
grantee can have no community OF
interest with the stockholders in
the West. That being foreign
corporation, feeling disadvantageouS
to the welfare of the property will be
engendered leading to adverse and re-
strictive legislation. The bill con-
cludes with the declaration that for
their attempt to wreck the company
the president, directors and officers
should be removed, and the gigantic in
terests in their hands placed in charge
of a receiver appointed by the court.
Judge Tuley sent the bill to master in
chancery, and tonight a copy was
served on such OF the defendants as
was possible with notice to attend
hearing tomorrow morning.