Democratic Northwest and Henry County news. [volume] (Napoleon, O. [Ohio]) 1894-1905, 1895-07-11
Democratic Northwest.
AMI HENRY COUNTY NEWS.
From the Toledo Blade.
MILLION DOLLAR SUIT.
AGAINST THE MANSFIELD,
COLDWATER & LAKE
MICHIGAN RY.
Action to Satisfy a Judgment and
Enforce Stockholders Liza
bility.

John Swan, surviving partner OF
Swan, Rose g. Company, and Ersklne
H. Potter, assignee in bankruptcy OF
Robert H. McMann against the Mans.
field, Coldwater & Lake Michigan
railroad company ct oil. defendants, is
the title of new case started in com.
mon pleas court to-day. Great interest
attaches to this suit since it calls to
mind the history Of what is known as
the Coldwater railroad.
The original line extended from
Mansfield to Allegan, Michigan,
through Tifin, Fostoria, Napoleon
and other Ohio towns.
Swan, Rose & Co., it appears, were
the original contractors of the con-
struction Of the road, except the lay.
ing of the rails. Their work was
largely completely but was stopped
on account OF the failure of the rail
road company to keep up lLs payments
for the sane. Tho Pennsylvania com
rr'ny had the contract for laying the
ION at the rate Ut $4,000 per mile
in bonds and majority Of the ste ok
of the railroad company, in payment
After the BAD was constructed short
distance west of Tlffin the work was
suspended. In the meantime branch
had been run Tiffin to Toledo and is
now what is known as the Pennsylva-
MIA road, being continuation of the
old Coldwater road from Mansfield
to Tiffin.
The Pennsylvania company, after
the work was stopped, foreclosed the
mortgage securing the bonds on the
road and bought in the property at
sheriff's sale.
In June, 1874, the petition states
Swan, Rose & Company commenced
an action in common please court
of Fulton county to recover the
amount due them from the railroad
company upon their contract. A
judgment 1t seems, was rendered
if favor of the plaintiff for something
$4,000, 600 but the case was then like
carried to the district court.
On the motion OF the defendants it
was removed to the United States cir
cult court at Toledo, where Q judg-
ment was again rendered in favor of
the plaintiff.
From there it was carried to the
supreme court of the United States,
which decided that the United States
court had no jurisdiction and remand
ed it to the State court for further ac-
tion. A judgment was then fiually
rendered in the common pleas court
Of Fulton county in favor of the plain
tiff on March 26 1892, for the sum
of 1922, 5S4.04 with interest from
March IA, 1892, and costs. The amount
now involved is about $l,00O;OOO.
The action which was commenced to-
day is to satisfy this judgment.
The petition alleges that the rail-
road company is wholly insolvent and
asks that the defendants who are
stockholders be required to pay The
debts of the company on account O
their statutory liability. The Penn
sylvania company, it Is said, is th'
holder OF 10000 shares, of the pa
value of ST., 100000. The other de,
PENDANTS are holders OF differen
amounts In all there are nearly so
persons mentioned as defendants il
this action. The petition is printed
in pamphlet form and covers 26 pages
Hurd, Brum5ack g. Thatcher are th
plaintiffs attorneys.