The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-12-03
ATTACKS n. p. Sale
YELLOWSTONE PARK ASSOCIATION
QUESTIONS. THE VALIDITY OF
THE RECEIvERsHIP SALE.
HAS ANOTHER GRIEVANCE, TOO
CLAIMS THE ROAD is MAKING
MONEY OUT OF THE FAMOUS
PARK,
Wants the United States Court to
Appoint IL Receiver Substance
OF the Application.

The validity of the receiverShip sale
of the Northern Pacific railroad was.
called into question yesterday by an
application to the United States circuit
court on the part of a number of stock
holders in the Yellowstone Park associ-
alton for the appointment Of a receiver
for the association and for an order
carcelIing the stock of the Northern
Pacific Railway company in the park
assoc, ation. An injunction is also
sought to restrain the railway COM
pany from casting it's stockholders vote
at the annual meeting Of the board of
directors of the park association which
takes place in this city Dec. T.
The legality of the receivership sale
of the Northern Pacific Railroad COM
pany is made an issue on the allegation
that the charter of the road was
granted by an act of congress and &C
cepted with the stipulation that the.
government could "alter, amend or re-
peal" said act which is claimed to have
been a contract between the govern
ment and the company, complete and
unimpairable forever" and that the
sale of the road to corporation exist
ing under the laws of the state of Wis
consin took it from the government
control stipulated in the charter.
The formal title of the case is Rich
ard E. Perry, James F. Robb, F.
Diehm, John D. Perry, Dwight F.
Davis, Samuel c. Davis, Maria ].
Davis, John T. Davis, Charles Gibson
and G. E. Gibson VS.. The Yellowstone
Park association, Northern Pacific Rail-
way company and Northern Pacific
Railroad company and all other stock
holders of the Yellowstone Park associ-
alton who may desire to join in the
prosecution or defense of said action.
All of the stockholders institutfng the
action are residents of ST. Louis, Mo-,
while the principal place of business of
the defendants is given as st. Paul.
While the suit attacks the validity Of
the receivership sale this in the main
is not urged by the stockholders, who
aliege as their chief cause of action,
the reputation Of a contract by the
reorganized railway between the old
railroad company and the park associ-
alton which it is claimed renders the
association insolvent and makes value
less their stock. The order permitting
the Reputation of the contract was
obtained from the court of Wisconsin,
though it is claimed without notice to
the stockholders of the association,
therefore being ex parte and void.
The story told by those instituting
the action is briefly as follows:
The stock of the Yellowstone Park associa-
ton was divided into 5000 shares of 500 each
and there has been issued about $3.50 shares
of which the road has on it's books 1883
which has, given it the control of the asso-
40 in Ofi fc Yon1in
When the plaintiffs bought the stock they
were told by the railroad that the. road had
entJred into an agreement by which the
stock was to be per cent dividend paying
stock annually: that the business of the as
soclauon would be Improbable unless con-
Quoted in connection with the road.
There was an agreement that the road
Should do the business of the association for
the joint account of both parties, and in No
Vember, 1883 an agreement was made by the
ROAD and the association that if the business
taking into account the business of the asso-
citation from all quarters should for any one
year and from year to year yield to it a net
proht of less: than $50, 600 then there should be
allowed to the association cut of the revenues
OF the road from interchange of business and
tne road should pay to the association a sum
winch, added to the net earnings of the as
soclatlon, would make up the sum of S30, 900
when added to the net earnings of the assecia-
ton.
ISOLATION AT the time of the insolvency. of
the road the association flied a bill against
the road Tor the carrying cut of the contract
and j. w. Kendrick, of the road, reported the
value of the park business for four or FIVE
years at $4,000 or 100000 year. Judgment
for the association was entered by stipulation
and the profits for 1693-4-5 were paid over
and the profits for 1893 divided among the
stockholders of the association. The new
road, the railway company, secured from the
court an order allowing it to repudiate the
contract of November 1889, and notice of the
reputation was served on the association
but no notice Of the asking for the order was
ever given. This leaves the association de-
pendent On the hotels in the park and the
loss from that source alone has been as fol-
lows: 1887 6.029; 1892 $fS, 615; 1S93 $2S. 593:
1894. SS4. 0S3; 1895, SIS, 652.
This showing leaves the association inSolv-
ent while the road is making from $4,000 to
100000 year from the business Mr.. Pearce
and Mr.. Kendrick of the railway are the
president and vice president of the associa-
ton, and allowed the order of the court to be
made against the association without giving
notice. The sum of $50. 434 has been paid