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For any closer report, you will have to apply to the clerk for copies of papers and process.
Complaint in above case, filed in circuit court for east district Wisconsin, August 14, 1875, alleging that the company executed 2,500 bonds of $1000 each, dated July 1, 1871, principal payable in 1891, bearing gold interest at seven per cent. payable July 1, and January 1, of each year, and mortgage or trust-deed as security therefor, bearing same date, to trustee, covering road from Milwaukee to Manitowoc and Two-Rivers, and to Green Bay, with all tolls and property. etc., etc.
Mortgage on record with Secretary of State, Madison, volume 3, Railroad Mortgages, pages 62 and 71. Condition of bonds if default is made in payment of any interest, or in payment of sums to be set aside for sinking fund; and said default continues for 90 days, then the whole principal to become due. No part of interest has ever been paid-or sums paid for sinking fund. The railroad barely pays operating expenses, and is insolvent; prays for appointment of receiver and decree of foreclosure and sale.
Sept. 13, 1875.-Order of court appointing F. W. Rhinelander, Racine, with authority to issue certificates of indebtedness to the amount of $40,000 to settle suits and claims and otherwise protect the interest of bondholders.
Receiver's bond filed Oct. 1, 1875.
Decree of foreclosure and sale issued Oct. 12, 1875.
Sale took place Dec. 10, 1875.
Railroad bid in by committee of bondholders for sum of $2,509, 478.20, of which $2,500,000 was paid in bonds at face-balance in cash.
UNION TRUST Co.,
MIL. M. & G. B. R'Y Co., MIL., LAKE SHORE As one corporation. & W. R. R. Co., Appleton & New Lon
don R'y Co.
Similar complaints were filed at same time; same process issued at same dates; sale to same parties, at same time, for sum of $1, 222,988.70, of which $1,213.000 was paid in bonds, balance in cash.
CONDITION OF CHICAGO & NORTHWESTERN.
Commissioner Hoyt to President Keep.
OFFICE OF RAILROAD COMMISSIONERS,
DEAR SIR:-I understand that you have published an official statement contradicting the damaging reports recently made and widely circulated concerning the management and financial condition of your road. If you have communicated anything to the public on this subject, will you not favor us with a copy, or acquaint us with the publication and issue in which it appeared. 1 remain, very respectfully, yours,
JOHN W. HOYT,
President Keep to Commissioner Hoyt, in reply.
OFFICE OF C. &. N. W. R. R. Co.,
CHICAGO, December 22, 1875.
DEAR SIR:-Referring to your fovor of the 21st, I would say that you have been misinformed as to the publication of any formal official statement in regard to the condition of our company. The true state of the case is as follows: Our morning papers published some "special dispatches " from New York, attacking the credit of the company, as well as the condition of the road and its equipment; and representatives from the papers publishing the dispatches called at my office when I verbally stated to them that the reports were untrue-the financial affairs of the company being easy, and the condition of the road and its equipments being excellent. I also vouched for the correctness of the statement contained in our annual report (to which I referred them for information,) which was given to the public in August last.
The substance of my denial was published in our daily press, though with some inacuracy.
This is all there is of that matter. I have noticed with some regret a disposition on the part of some parties in the State of Wisconsin to make any statement as published a ground of assertion
that our company was so prosperous, as not to need any relief from the restrictions of the "Potter-law."
I think it will be apparent to you, and to any candid person, that while we have been able to preserve the credit of the company, it does not follow that we are receiving a fair compensation for our business in the State of Wisconsin, because this has been done at the expense of our stockholders who have not, in the last two years, received a dollar of income from their very large investment in the stocks of our road; and I believe this statement holds good as to every road in the State of Wisconsin. It should also be remembered that less than one third of the lines of road operated by this company are located, in your State.
adjust the matter of rates with the people on the West Wisconsin Railroad so far successful that they were induced to declare their acquiescence in the charges made? We are receiving no complaints now, and I would be glad to know whether it is because of a general acceptance of the representations made to them by you, person and by circular, or for other reasons.
President Porter to Commissioner Hoyt, in reply.
OFFICE OF WEST WISCONSIN R. R. Co., CHICAGO, December 24, 1875. DEAR SIR: I have just returned from the east. and find your favor of the 17th, inst.
To your inquiries 1 and 2, 1 am informed Mr. Keep has replied, as they relate to Chicago and Northwestern matters.
In answer to your third question, I beg to say, that when I could personally meet customers of the West Wisconsin Railway, and explain to them our situation, they were inclined to acquiesce in the charges made.
I am receiving no complaints now, and matters seem to work quietly. But the earnings of the West Wisconsin Railway Company, unless improved by increased rates, cannot keep the road alive. andit will deteriorate and go out of existence.
J. W. HOYT, Commissioner.
H. H. PORTER, President.
RAILROAD LAWS OF 1874–1875.
CHAPTER 273–LAWS OF 1874.
(The “ Potter-Law.”] AN ACT relating to railroads, express and telegraph companies in the state of Wis
The People of the State of Wisconsin, represented in Senate and
Assembly, do enact as follows:
SECTION 1. All railroads in the State of Wisconsin are hereby divided into three classes, to be known as Class A, Class B, and
Class C. Class A shall include all railroads or parts of railroads in the State of Wisconsin now owned, operated, managed, or leased either by the Milwaukee and St. Paul Railway Company, the Chicago and North western Railway Company, or the Western Union Railway Company. Class B shall include all railroads or parts of railroads owned, operated, managed or leased by the Wisconsin Central Railway Company, the Green Bay and Minnesota Railway Company, or the West Wisconsin Railway Company. Class shall include all other railroads or parts of railroads in said State.
Section 2. Any individual, company, or corporation owning, operating, managing or leasing any railroad or part of a railroad in the several classifications as herein prescribed, shall be limited to a compensation per mile for the transportation of any person with ordinary baggage, not exceeding one hundred pounds in weight, as follows: Class A, three cents; Class B, three and onehalf cents; Class C, four cents; provided, that no such individual, company, or corporation shall charge, demand or receive any greater compensation per mile for the transportation of children of the age of twelve years or under than one-half of the rate above prescribed; and prorided further, that the rates for transportation herein prescribed may be reduced as hereinafter provided.
Section 3. All freights hereafter transported upon any railroad or part of a railroad in this State are hereby divided into four general 1-R RC-APP