St. Paul daily globe., 1893-02-28
The Troubles Of the Missabs
Road Transferred to the
District Court. "
William s L.. Browne Repeats
His Tale Of Woe From
the Merritts. -
The Government Does a Qaes
Thing With the Timber
: Inspectors. Il
White Earth Indians Please
With the Incoming De-
mocracy. a

William l.. Brown, oil chicago, has
not relinquished his fight againststhe
Merritts and the Duluth, Messabe &
Northern Railroad company. His defeat
In the federal court. when Judge Nelson
refused the injunction and dismissed
the bill Of complaint. was followed by
the dismissal of the case in the state
court, according to the statement OF
Col. Stone, of counsel for the Merritts.
1t seems that tine letting go in the state
court was only for the purpose of get
ting a new grasp, as appears by bill Of
complaint filed yesterday in the clerks
office of the Ramsey county district
court. The new bill is an amended form
of the one filed in the federal court and
has the same object in view, namely, to
enjoin the Merits and few others
from voting as directors on stock al
legged to have beeu secured by indirect
means, and also to cancel $666, ,666 in
bonds and prevent the sale of new
bonds and stock at an aggregate much
below the par value. The defendants
named in the bill filed yesterday are
the Duluth, Missaba & Northern Rail-
way company, K. d. Chase. Edwin n.
Hall, S. r. Payne. W. w. Henry, c. c.,
Alfred, A. R., Leonidas. NJ. B., Eliza
beth NJ, l.. j., Elizabeth E., John E., Z.
A, E. T. and l.. F. Merritt, Albert S.
Chase and Donald Grant.
The bill alleges that the directors
have made contract with G. w. Wet
more and others representing the
Rockefeller interest to sell 81. 100000 in
bonds and 1866, ,e66 in paid up stock for
the aggregate price of 81, 600, 900, payable
as follows: Jan. 5, 1898. 100000; Jan.
10, S190,000; Feb. Is, March Is, April Is
and May Is, payments of $4,000 each,
and on June Is of this year the final
paymen of s470,000. 1t is claimed that
the price agreed upon is much below
the real value: that the money received
by the directors is to be used for the
following purposes: To extend the main
line from Artichoke Creek to Duluth.
S397 614; to build approaches to ore docks
in Duluth and to construct viaducts
over streets and tracks of other rail-
roads, 100000; to build ore docks at
Duluth, $300.000; to purchase additional
rolling stock now under contract. $780,
900; to pay bankers commissions and to
associates, $4,000; to defray branch
and other expenditures heretofore
made, $40, 1856. }e
1t is shown that the contract for the
sale of the bonds and stock and the pro-
posed mortgage is to be subject to the
approval of G. w. Wetmore. q. w. Muir
ray and Moses E. Clapp; that the con-
tract provides that the railroad COM
pany shall form trust with the aSso-
cates embracing, besides the railroad,
majority of the stock of the Mountain
Iron company and. if possible. the BIZ
wablk Mountain Iron company and the
Missaba Iron company, with a view also
to the protection of tariff eohtractS al
ready entered into. The CO itract also
provides that none of the stocks Of
these companies are to be sold until
after the associates have had chance
to purchase the same on equal terms.
The company also agreed to elect at
once two directors, to be nominated by
the associates in the deal with the rail-
road company.
The court is asked to enjoin the direc-
tors of the railroad company from exer-
ciSing the rights of stockholders who
are alleged to have illegally secured
stock and to cancel S666, ,666 of stock al
legged to have been Illegally secured.
1t is asserted that the following named
persons have secured stock from per-
sons who Illegally secured the same.
namely: Elizabeth Nj. Merritt, L. J.
Merritt. Elizabeth E. Merritt. John E.
Merritt, T. A. Merritt, E. T.. Merritt,
and l.. F. Merritt, who are the persons
asked to be enjoined from exercising
the rights of stockholders. and they are
asked to be enjoined from contracting
to sell stock.
1t is alleged in the bill of complaint
that the stock fraudulently issued is
held as follows:
Leonidas Merritt, 1879 shares; Eliza
beth E. Merritt. 4S shares; Alfred Mer-
ritt, 1850 shares; X. d. Chase. 1,OS2
shares; NJ. B. Merritt, 50 shares; John
E. Merritt, 326 shares; A. r. Merritt, 3S7
shares; W. w. Henry, 90 shares; G. c..
Merritt, $50 shares; E. t. Merritt, 167
shares; Eliza NJ. Merritt, 19l shares; AL
bert s. Chase, 1,546 shares; j. j. Mer-
ritt, 1914 shares; l.. F. Merritt, 40
shares; Roswell II. Palmer, 4S shares :;
S. Il. Payne, S5 shares.