Page:Federal Reporter, 1st Series, Volume 2.djvu/306

 SAHLGABD V. KENNBDT. 299 �acquisition of the line of railroad of the First Division of the St. Paul & Pacific Eailroad Company, etc., by purchase at the foreclosure sale to be ma de in said pending foreclosure suit, and payment theref or in bonds ; that the suit should proceed under the advice and instruction of said parties, Smith and others; that the negotiation for the sale of the bonds "was eonsummated with Kennedy, who approved the proposai and reoommended its acceptance, and that the suit was prose- cuted, conducted and concluded under the advice and instruc- tion of Smith, Stephen, Kittson and Hill, through Kennedy as agent, and with a view to obtain a transfer of said road to them under the forms of judicial proceedings in fraud of the rights of bond holders who had not contracted to sell their bonds to said parties; that Kennedy, as agent, paid and controlled the counsel in the foreclosure suit; and, further, - in substance, that the resuit of the suit and the decree, by consent, was in the interest of the parties who had so nego- tiated with Kennedy, they having become domini litis in re- spect to the foreclosure proceedings. It is also charged that the trustees, through Kennedy, fraudulently connived and combined with the syndicate to allow the property and rail- road to be purchased at the foreclosure by the St. Paul, Min- neapolis & Manitoba Eailroad Company at a nominal priee, compared with its true value. �"PaoposAL Madb AT New Yokk Meeting op Januaby 3, 1878, BY Canada Pabty. �"[translation.] �"The proposai embraces ail certificates which have been issued by the committee, and must be accepted by at least the same proportion of certificates which acceded to the former proposai. It is offered to pay for first section bonds ($1,200,- 000) net 76 per cent, in gold; Consolidated bonds ($2,800,000) net 28 per cent, in gold ; second section bonds ($3,000,000) net 80 per cent, in gold ; 1869 bonds ($6,000,000) net 35 per cent, in gold; St. Vincent & Brainerd bonds ($15,000,000) net 13| per cent, in gold, of the nominal amount of the bonds, ����