St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-08-21
Prominent Citizens Called
Upon for an Accounting in
the Sale of a Railroad.
A Suit Which Involves Valu-
able Land and a Heap
of Money.
Solicitor Hart Investigates
Inspector Sloane Behind
Barred Doors.
Important Changes Proposed
by the City Railway Com
pany in It's Line.

Charles B. Brunson, as receiver of the
st. Paul, Saltwater & TaylOr's Falls
Railroad company, has begun suit
against Elias f. Drake. Amherst II.
Wilder, Peter Berkey. A. 3. Stickney,
Isaac Staples. r. F. Hursey, Russell
Blakely, John l.. Merriam and Charles
Ii. Bigelow, and asks that they be re-
quired to make an accounting for the
amount of common stock in the railroad
held by them at the time of the sale of
the road TO the st. Paul Il Sioux City
railroad, and the amount Of stock in the
former company exchanged for the
common stock in the latter company.
An accounting of the stock so received
isiasked for and q judgment for the re-
cOvery of its value.
The complaint recites that in 1871
the state conveyed to the Saltwater
company 1900 acres of land. which it
was supposed to be entitled to for build
ing its road from st. Paul to Saltwater.
but it is claimed that 20, 700 acres thereof
were conveyed by mistake, as this
amount had been pledged to the Hast
ings & Dakota Railroad company, which
was entitled thereto by reason of having
built its road as provided by the law
making the grant. The Saltwater COM
pany sold its road, including the fran
chiSe TO Hudson, to the St. Paul q
Sioux City company in 1880. The stock
in one company was exchanged for that
in the other upon an equal basis. 1t is
alleged that Peter Berkey held 249 90
100 shares; E. f. Drake, LOSS shares; A.
b. SLickney, 4S shares: Isaac Staples.
140 shares; X. T. Hursey, 619 shares;
Russell Blakely, 6S shares; A. H.Wilder.
LOT shares, and John l.. Merriam,
457 shares. The shares were worth
500 each. 1t is claimed that
the stock was exchanged on the basis of
50 cents on the dollar. The sale to the
st. Paul q Sioux City embraced all the
property except the land which was
mOrtgaged to its full value, and the
lands have since been sold to pay this
mortgage. Since this, or in 1889, the
lands, including the 20.700 acres. which
should have been conveyed to the Hast
ingS q Dakota company, have been
sold to innocent bona fide purchasers,
! and the proceeds used to pay off the
mortgage Indebtedness referred to-,
which is alleged to be special land
stock issued under the mortgage. In
1886, the Hastings q Dakota company
began an action in the United States
circuit court against the st. Paul, Still
water q Taylors' Falls company to re-
cover the 20, 700 acres, and after the suit
was before the Hastings * Dakota
company assigned its rights to Russell
| Sage in trust. On April, 1891. Russell
| Sage secured a verdict for the 20, 700
acres. the value of which the court as
| certained to be 1920. 092. II at the time OF
its sale by the Saltwater company, which
with interest made the judgment in
| favor Of Russell Sage, S21l,536.35. BY
! subsequent proceedings had judg-
ment was rendered in the district court
of Ramsey county in favor of Russell
Sage against the st. Paul, Saltwater
IL Taylers Falls company for S21l 1855,
and the plaintiff was appointed re-
ceiver. 1t is alleged that the debt of
the ST. Paul, Saltwater u TaylOr's
Falls company, which are not
! secured, amount to over $780,
600. 1t is claimed that the
| Hastings & Dakota company, nor Rus
| sell Sage did not know at the time of
the appointment of the receiver that
there had been distribution of the as
sets of the Saltwater company among
| its stockholders. 1t is because of these
! facts that the stockholders are asked
| to make an accounting and pay over
| the proceeds received by them.