St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-09-18


ingston, Mont, to Cinnebar, Mont. the
Northern Pacific & Montana Railroad
company, which owns sundry short
lines of railroad in Montana between
the following named points in said
state: Clough Junction to Marysville,
Jefferson to Calvin, Missoula to Grant
dale, Drummon to Rumsey, Logan to
Butte, Sappington to Norris, Harrison
to Pony, Boulder to Elkhorn, Desmet
to st. Regis; the Helena & Jefferson
County Railroad company, which owns
a line of railroad extending from Prick
ly Pear Junction to Jefferson, Mont. !;
the Occur d'Alene Railway and Navi-
cation company which owns a line of
railroad extending from Hauser juno
ton, Idaho. to Occur d'Alene, Idaho;
the Central Washington Railroad COM
pany, which owns line of railroad ex-
tending from Cheney, Wash, to Coulee
City, WASH; the Spokane & Palouse
Railroad company, which owns a rail-
road extending from Marshall juno
ton, Wash, to Lewiston, Idaho, with
branches in the states of Washington
and Idaho; the Spokane Falls & Idaho
Railroad company, which owns an
other short line of railroad in the state
of Washington; the Cleallum Railroad
company, which owns a line of rail-
road extending from Cleallum Junction
to the coal fields in Washington; the
United Railroad Company of Washing
ton, which owns
SUNDRY SHORT LINES
of railroads in the state of Wash
lngton; also the Northern Pacific &
Cascade Railroad company, the Green
River & Northern Railroad company,
the Tacoma, Orton & Southeastern
railroad company, each of which owns
one or more short lines of railroad in
the last-named state; the Northern Pa
cific & Manitoba Railroad company,
which own a system of railroads in
the Province of Manitoba, British
America, connecting at the boundary
line with the railroad of the Duluth
Manitoba Railroad company.
The said railways, comprising those
owned by the Northern Pacific Rail-
road company itself, as well as those
owned by companies the capital stock
OF which is held by the Northern Pa
cific Railroad company, are now and
for a long time since have been op-
Grated as single system of railways
under the name of the Northern Pa
cific system, and have an aggregate
mileage of nearly 1850 miles
T. The Northern Pacific Railroad
company, prior to Jan. l, 1893, had
made and issued it's capital stock to
the amount of upwards of $4,000, coo,
diVlded into shares of 500 each, all
OF which Is still outstanding, and had
also made and issued several series
of bonds secured by mortgages of its
railways and other properties and OF
Its franchises. including its franchise
to be a corporation, as follows, to wit:
Missouri division bonds. ....... 81. .965 600
Pend d'Ore:lle division bonds. 1,34S,OlO
General first mortgage bonds. A, 49,, 900
General second mortgage 81
General third mortgage bonds II, ,298, ,0e0
Consol mortgage bonds. AZ, ,567, ,0G0
All or nearly all of each of the said
series of bonds are still outstanding
in the hands of the public, and all the
principal thereon. and most of the in
terest thereon which has accrued DUR
ing the last two years remain wholly
1893, the Northern Pacific Railroad
company had become insolyent and
had contracted large floating debts
which 1t was wholly unable to pay, and
IN consequence thereof receivers of It's
property and effects were on or about
that month appointed by the several
circuit courts of the United States in
the various states and districts trav-
ersed by its lines of road, which re-
eeivers are still in possession of and
operating it's railroads and other,
properties, and managing the affairs
of the system.
y. Plaintiff further alleges that the
defendant and the holders of a major
tty of the said several classes of out
standing bonds secured by the second,
third and consolidated mortgages of
the said Northern Pacific Railroad
company have entered into an ar
terms Of which are unknown to the
plaintiff, but which in substance is
as follows:
The holders of the said several class
es of bonds shall cause each Of the said
mortgages to be foreclosed and the
railroads and other properties and
franchises of the Northern Pacific
Railroad company including it's fran
chise to be corporation, to be sold at
foreclosure sale, subject to the said
divisional and general first mortgage
bonds, and shall cause the same to be
bid in and purchased at such sale by
a committee of bondholders or other
agency or representative for the bene-
standing bonds secured by the mort
cages so foreclosed, and shall cause
the said railways properties and fran
chiSeS
TO BE REORGANIZED
as a, new corporation, either under the
said acts and joint resolutions of con-
gress relating to the Northern Pacific
railroad or under some other appro-
pirate and sufficient legislation of the
United States, or of some one or more
states. After and upon such foreclos-
ure sale and reorganization, the reor-
ganized company shall issue it's bonds
to the aggregate amount Of over one
hundred millions of dollars or over,
and its full paid capital stock to the
further amount of one hundred mill
ions of dollars, and shall enter into
a traffic contract with the Great North
ern Railway company whereby in sub
after exchange traffic at all intersect-
ing and connecting points, and shall
divide the common earnings from
such exchanged traffic on the basis of
mileage hauled on the systems re-
speetively. In consideration of such
traffic contract, the Great Northern
Railway company should guarantee,
for the benefit ,of the holders of the
said bonds so to be issued by the said
reorganized company, that the net in
come of the latter-named company
applicable to the payment of the inter
est upon said bonds shall never fall
peloW the sum of six million two hun
dred Thousand dollars per year, and
snail also, If requested, execute upon
each of the said bonds its guarantee
of the interest thereof UP to the ag-
gregate amount of the said annual
sum. AS compensation for the risk of
loss TO the stockholders in the defend
ant company which the said guarantee
might produce by the diversion of
portions of it's earnings of the Great
Northern Railway company to make
Soou IT'S sdlu guarantee of interest
upon the bonds of the reorganized
company, the last-named company
shall transfer to the shareholders Of
the defendant company or to some
person or corporation as trustee for
their use, the one-half part of the
capital stock of the said reoreanized
company. Plaintiff is informed and
believes that the defendant claims the
right to make and carry out the con-
tract and arrangement aforesaid in
Guiding the guarantee aforesaid. un-
der and by authority of the laws of
the state of Minnesota, and in partic-
ular under and by authority of the
several acts of the legislature thereof
under which it claims to be Organized
and relating to it. But the plaintiff
AYERS that the laws of said state do
not confer upon the defendant the
power necessary to make or carry
into effect the said arrangement, and
that the same Is expressly prohibited
by the general laws of the said state.
y: Plaintiff further alleges that the
defendant and the said Northern Pa
cific Railroad company are respective
iy common carriers, and as such. are
largely rivals and competitors In busi-
ness, both within the state of Mime
sofa and each of the other states above
named; that the lines of railroad
ODerated and cOnfrolled byy tbar, xo