New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-07-16
SUIT AGAINST NORTHERN PACIFIC.
MR.. SAI.OMON ASKS THAT THE HOLDERS OF
PREFERRED STOCK BE DECLARED
THE OWNERS

Sidney H. Solomon. behalf OF himself and other
owners Of preferred and common stock OF the
Northern Pacific Railroad Company. has brought
suit In the United States Circuit Court against the
Northern Pacific Railroad Company and others IN
Guiding the Farmers Loan and Trust Company
Edwin H. McHenry and Frank G. Bgelow. receivers
Of the company: Brayton Ives August Belmont j..
p,erpon; Morgan and the Reorganization Committee
Of the company
In his bill OF complaint Mr. Solomon asks the
Cour. TO direct that the holders OF preferred stock
of tho company be declared the owners and to have
frs, lien upon the lands OF the company east OF
the Missouri. in Minnesota and North Dakota, and
entitled 10 have the proceeds OF said lands app"eu
to the retirement and cancellation OF the preferred
stock: that the preferred stockholders be decareh
the owners Of the consolidated mortgage bonds Of
the company OF the par value Of sSS47Go, deposited
with the Farmers Loan and Trust Company; tina;
al Injunction be issued restraining the defendants
from disposing OF the bonds their proceeds Vhls
prohibition 10 include first. second. third and con-
solidated mortgage bonds), and that further in
junction be granted restraining the foreclosure sale
of said bonds.
400 shares OF the preferred and 1000 shares OF the
common stock of the company and following are
his principal allegations in the case:
In May. 1879. and subsequently, the Northern Pa
cihc Railroad Company made certain mortgages or
Loan and Trust Company certain lands and portions
OF its line of railroad 70 secure issues OF Donds:
On December ., 1889. the company delivered TO the
trust company a deed Of trust known as It's con-
sodated mortgage. The preferred stock Is con-
vertibie at par into any lands owned by the com
pany east of the Missouri River In Minnesota and
North Dakota. and has lien upon such lands and
their proceeds only inferior 10 that of the first gen
eral mortgage. The company was forbidden by the
act OF Congress. under which II was created. ever
issue any mortgage or construction bonds on us
road (such as those referred TO In the compainD.
or TO make any mortgage or lien except by consent
OF Congress. The second and third and the consol-
idated mortgages and the bonds issued hereunder
We're made without the consent OF Congress.
In March, 1892. the company deposited with the
trust company consolidated mortgage bonds OF the
par value of SO $4,000 The owners OF the preferred
stock entitled TO the cash value OF such de-
post and are entitled 10 have their proporuonate
interest In the mortgage bonds protected These
bonds have never been distributed The company
having defauted in the payment OF certain interest.
including that upon ITS second. third and consoh-
da ted ga bonds. the defendants refuse to rec
the rights of the owners OF the preferred STOCK
The Reorganization Committee Of the company
has formed a plan. and in connection with suit
against the company pending IN the ia stern
District Of Wisconsin. and brought by the Farmers
Loan and Trust Company, attempt Is being made.
with the approval of tho defendants TO forecose the
second third and consolidated mortgages
II a foreclosure sale is permitted. the bill OF COM
plant rectes. irreparable injury vii. be done TO
owners Of the preferred stock and their rights TO the
Minnesota and North Dakota lands and 70 the de-
post Of the consolida ted mortgage bonds VIII be
destroyed without their receiving any equivalent