St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-11-21

he reviewed the proceedings, saying:
The road was built from Winona to
Usage, To-, distance Of III miles.
A mortgage was placed on the
road i'll April, 1883, to pay
for construction and equipments,
amounting to S1,937,O There was de-
fault Ii the interest due Oct. l, 1898,
amounting to s5S, ITO. The petitioner
had right to begin an action to fore
close its mortgage, Notwithstanding the
fact that the mortgage gave six months
grace i'll which to pay interest. The
right to foreclose mortgage does not
necessarily carry with it the right to
appoint receiver, and this would not
be done III case the security for the
mortgage is adequate and there is no
danger OF ultimate loss to the bondhOld-
ers. In such case the possession of the
mortgagor would not be disturbed until
final decree and sale. In this case ad-
ditional grounds are urged for tile APP
p0intinent of a receiver. 1t is claimed
that the property Is not adequate to Sc
cure the bonds. The rallraad company
Is insolvent, and is not keeping the roll
Ing StocF in proper repair. There is a
| large floating debt, and the Winona q
! Southwestern improvement company
owns majority of stock of the railway
company. The road has been managed
| in the interest of the improve
ment company to the prejudice
of the bondholderS of the railroad
The rolling stock placed on the road in
| October. 1892. and which was returned
to the state auditor in 1892 as belonging
to the railroad company, was, when it
became evident that there would be a
default in interest Oct l, 1898, sold to
the improvement company, and by it
leased to the railroad company at an
enorn nous rental. The defendant de-
med many of the claims made by the
petitioner, and claimed that it had it has
floating debt of only S1Sl. 073. &c. The
point is not whether the road should be
left i'll the hands OF the railroad COM
panv, but whether it should be left in
the hands of the Improvement company.
Judge Caldwell then said that the
railroad people may have believed that
they had six months grace in which to
pay the interest coupons, and now that
he had decided on appointing a re-
ceiver, he would listen to any sugges-
ton as to the arrangement to pay the
Interest or give bond TO secure it, as had
been suggested Saturday as being prob
able.
Mr.. Bum. after consulting with his
clients, said that they had come to the
conclusion not TO pay the interest, as it
would not be just for the men who own
but one-fourth of The bonds to pay the
share of interest for the other three
fourth owners. Il don't think this is a
bona fide effort to appoint receiver"
added Mr.. Bum.
To this remark Judge Caldwell re-
piled: LET me disabuse your mind of
that idea. If / am asked to name re-
ceiver of this road, the equity rules will
be enforced to make a foreclosure as
rapidly as possible. My rule is to wind
up such business as rapidly as may be
done. There will be no receiver certifi-
Gates issued. and you will be glad to get
out of the hands of the court. l do not
say it in boaSting way, but [ am
known to be very expeditions in these
matters"
Mr.. Bum then stated that the railroad
|
cree in foreclosure and to an order to
sell the road at the earliest possible
date, and they would agree that on the
day Of sale there shall be no floating
debt. so that the property may be clear
and the road may be in a position to
protect its interests by bidding for the
road. He further stated that his clients
are anxious to prevent the road going
into the hands of the Green Bay COM
pany, which already owns three connec-
tons from Winona to Chicago, and
would be interested in cutting the pro-
ceeds of the Winona & Southwestern
road by making repairs. For these rea-
sons objections were made to Mr..
Walker, Of New York, as receiver. he
being vice president of the Farmers
Loan and Trust company, that controls
the Green Bay road, and is. also an
officer in the Green Bay company.
MIR. Lawrence, representing the Farm
ers' Loan and Trust company, then
made statement in which he insisted
that Mr.. Walker be named as receiver.
Judge Caldwell stated that he would
like the parties to agree upon receiver.
In his view there was a hostility of in
tereSt in the matter He hoped that a
man of integrity and ability in the state
of Minnesota could be found and agreed
upon. He wanted a man fit for the
position, as he did not intend to keen