St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-04-16
A HEAVY SUIT
Involving the Ownership and
Safety OF the NJ. 81 ST. T..
Road
Action to Force q Foreclosure
OF $0,OOO.OOO in
Mortgages.

alton attorney of this city, concluded
last evening an argument before Judge
Lochren, of Minneapolis, that he began
last Tuesday. MIR. Richardson was
completely exhausted from the effort
after the long consideration leading up
to the argument of the case, In which
he examined over two thousand
cases reported on the points involved.
This cause was begun several years ago,
and involves about S9.000,000 in mort
gage claims on the Minneapolis d St.
Louis railroad. The case is of national
Importance, and involves new line of
litigation. The case is being heard by
Judge Lochren, and is the last maJter
to be taken up before him before leaving
the bench to become commissioner of
pensions. The decision is one that may
be expected to give Judge Lochren a
national reputation. There is an able
array of counsel in the case. Julian T..
Davies and E. S. Rapelio, Of New York
city.representH Henry Seibert. of the same
city, who is the trustee for number of
bond holders and persons who have a
mortgage OF S4,000,000 given to furnish
money 10 construct and equip the road
or some of its branches. The principal
holders of these securities are represen-
tatiyeS of theROck Island railroad, which
road sought to get control OF the Albert
Lea route, or the Minneapolis u st.
Louis road and by this means secure an
entrance to the Northwest. 1t is
claimed that the present ac-
ton by SeiDert as trustee
brought to forecose a mortgage
for S4,000.000 is to wreck the road and to
turn it over into the control of the Rock
Island company. General Counsel
Wright, of the Rock Island company, is
also here from Chicago representing his
road. Edward S. Isham, partner of
Robert Lincoln, of Chicago, is also pres
emf representing some interests. Ii. L..
TrueSdale, of Minneapolis, represents
the Farmers Loan and Trust Company
of New York; Judge Woods and
A. n. Keith represent the i'll
terestS OF the Fidelity Insurance
and Trust Company of Philadelphia.
Harris Richardson, of this city, repre-
SCENTS number of claimants, who are
secured by mortgage for S5,000,000.
Several other attorneys represent yarl-
Gus interests. The mortgage for which
Mr.. Richardson appears is prior to other
mortgages, and he claims that it covers
equities and property acquired after 1T
was given. The other parties claim
that their mortgage also covers the
entire road as second mortgage,
bat is prior lien OIL some of the
extensions and Improvements made
after the former mortgage was given
for instance the extension from Mime
apolis to MinnetOnka anc the building
known as the st. Louis hotel there
also the extension from Hopkins to
WATERFOWL. distance of 215 miles. Mr..
Richardson claims that the clients who
have the first mortgage have the first
lien oil all this property, and nearly all
the array of legal luminaries was pited
against him in the controversy. The
many people who hold bonds.
The 100000 mortgage covers the
holdings of the Rock Island
people; the Farmers Loan AID Trust
Company of New York has a claim of
81, l0O,0 900; the Fidelity Insurance and
Trust Company of Philadelphia claims
lien for S4S0,O00 Among the holders
of securities are the New York Life In
surance company to the amount of sever
al hundred thousand dollars. The New
fork Mutual Life company and several
other concerns also have large holdings
of securities. The fact that the
Minneapolis d st. Louis road is
in the hands of receiver
and has not paid cents interest
on bonds for four years, is exercising
some of the holders. 1t is apparent
that the road is paying, however, from
the fact that Receiver Truesdale has
nearly a million dollars in cold cash
i'll the treasury and which is lying
in bank. The Rock Island interests
claim that they should have this
money to apply OH its debt, but this
proposition is resisted by other inter
ests. The president of the Rock Island
road Is vice president of the Mime
apolis & st. Louis road, placed there by
his company'S holdings. 1t is said that
the Rock Island thought that by Secur-
ing the appointment of receiver it
would get the proceeds of the road. and,
failing in this, wants it sold to satisfy
its claim and all the other liens against
it, and expected to buy the Minneapolis
& st. Louis road at forced sale for low
figure. The decision is awaited with
great interest.