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(transcribed by Scott Monsma from Monday Jan 7, 1878 edition of the Fond du Lac Daily Commonwealth)

GIVE US A NARROW GAUGE!
THE TRIALS AND TRIBULATIONS OF THE FOND DU LAC, AMBOY AND PEORIA RAILWAY

A Lengthy Statement of the Difficulties of the Narrow Gauge.
By Geo. P. Knowles, Esq., Attorney for the Kinyon faction

That there is some clashing as to who are the proper managers of the F. A. & P. R'y, and that from this cause considerable trouble has arisen, is apparent to the general public, and but few comprehend why and wherefore such troubles do exist. To hear both parties tell their story is only to become so confused and mixed up with the intricate mess that the more you hear the more entangled you become. The history of the origin of the Narrow Gauge is known to all, though the present state of affairs is far from being what every one would wish. It is stated on one side that Mr. Boardman, who still claims to be the President of the road, though the Board of Directors met and elected Mr. Wolf as such President several days ago, is endeavoring to defraud the stockholders out of their rights, in favor of Geo. H. Wellman; and on the other hand we understand that he makes the same complaint of them. At all events since the late meeting of the Board of Directors, and the election of Judge Kinyon to the office of Superintendant, and his being placed in peaceful possession of the management of the road, the troubles have resulted in an open ruction. The first indication was when Messrs. Sherman and Watson, in the interests of Wellman and Boardman, endeavored to forcibly regain possession of the road. On Saturday, the 5th inst., this belligerent attitude influenced Judge Kinyon to call upon the Mayor and police for protection, and when the time for departure of the afternoon train drew near a large crowd gathered at the depot to see the fun. Nothing exciting, however, transpired, and the train departed in its usual manner. Both sides claim that the other is in the wrong.

The following statement, by Geo. P. Knowles, Esq., gives a history of the case from the Kinyon standpoint:

In Oct. 1876, the F., A. & P. railway company, through its Board of Directors, entered into a contract with A. Kinyon to build, furnish and equip, a railroad from Fond du Lac south through the counties of Fond du Lac, Dodge, Waukesha or Jefferson to a point about thirty miles west of the city of Milwaukee, then east to Milwaukee, a distance of about seventy-five miles in all. The contract specified the manner and particulars on which the road should be constructed, equipped and completed, and provided that upon the completion of each section of ten miles, the road was to be accepted by the company and the company to have possession and control of the same. That the whole line between Fond du Lac and Milwaukee was to be completed, fully equipped, ballasted, fenced, depots erected, water tanks and other particulars fully completed, and all levies paid of every nature, by the 1st or (sic) Jan., 1878. It provided the manner of payment on bonds and stock as each ten miles should be completed. It also provided that the contractor should pay for the right of way and take the title of the same in the name of the company. It also provided that the contractor should have the right to assign two thirds of his contract to responsible parties for the purpose of securing assistance to construct the road.

In November, 1876, Boardman and Sherman appeared upon the scene, and Sherman, upon representations that he was desirous of taking an interest in the contract of Kinyon, looks into the affairs of the company with Boardman as his legal adviser, and became acquainted with the exact condition of the conditions upon which the contract was let to Kinyon; the condition of the company; the right-of way, the provisions of payment and every other particular in relation to the enterprise. As I am informed, on the 25th day of Nov. 1876, Sherman made an arrangement with Kinyon by which he took an assignment of a two-thirds interest in the contract, and for the purpose of enlisting eastern capitalists in the enterprise, induced the stockholders to transfer in trust to him and Boardman one half of their stock, and elect Boardman President of the Company, and Sherman and Watson Directors. This was done to more effectually satisfy Sherman that the Company was willing to let them have an equal interest in the management of the affairs of the Company, and in this way protect them as well as to reserve to the Company its power to protect its own interests- which stock was to be re-transferred at any time the contractor should fail to perform, or when the contract should expire. On the 4th day of Dec. 1876, Sherman assigned his interest in the contract to Geo. H. Wellman, as it appears that he was really the person who was to furnish all the mony for Sherman, Kinyon assenting to this assignment. At the same time Boardman was elected President, he gave assurances that he would act for the interest of the Company, and would see that the Company would be protected in any event, and no one should be injured in their interest therein, and that he would not have any interest in the contract. At this time all was peacable and at the time specified the work commenced and moved along with great rapidity. Somelittle time after the work had been commenced it came to be understood that Boardman had been appointed the attorney in fact for Wellman, and that, unbeknown to any one of the Board of Directors, outside of the eastern members, Boardman executed a deed of a portion of the right-of-way belonging to the Company to Wellman, and without any authority of the Board or of the Secretary, attached the seal of the Company to the instrument, and caused it to be recorded. He also took all conveyances of right-of-way in the name of Wellman, individually, for that after acquired, directly against the provision of the contract. The fact of this transfer of the right-of-way to Wellman, even if any portion of the road had been completed, placed the Company in such a position that it could not have issued bonds with which to pay, under the contract, because the trustees who were to issue the bonds could not by law issue any bond until the Company had completed ten miles of the road and actually owned the right-of-way. It appears that Boardman never called a meeting of the Board of Directors for any purpose, although I am informed that some of the Directors at different times requested him to do so, and that there has been no opportunity for the Company to bring up any of the matters for consideration; and when approached upon the subject, it is said he represented that he feared there would be difficulty, and he didn't want to be interfered with in his business in connection with the road.

Numerous disagreements and dissentions occurred during the work. Kinyon, who retained one-third interest in the contract, was put forward to superintend the grading, and devoted his time and well known energy to his work. As soon as the trains commenced running the eastern faction made war upon him, and told him, as I understood, that if he wanted any further work to do, he could have a position as foreman of a section gang and keep the road in repair, at a salary of $40 per month. The result was Kinyon was ousted by their shrewdness and cunning, and left to take what he could get, and that was the "prospect of nothing". Others of the old company were treated in a similar manner. Wolf, one of the Directors, and Kinyon having understood that valuable coal leases, belonging to the Company, of lands in Illinois, and subscriptions for aid here in the city, also $10,000 of Mayville bonds- had all been taken possession of by Boardman and Sherman, and converted to their own use, or assigned to Wellman, thought it was time to stop these proceedings, and commenced a suit in Dodge County, and obtained an injunction restraining, among other things, Boardman from converting any of the property, or creating any lien upon the property of the company, and enjoining Wellman from disposing of the right-of-way; also asking for a delivery of the stock so assigned to Boardman and Sherman.

This complaint as yet has not been answered and the injunction still exists. The defendants, although so restrained, have violated the same, and as I understand, are at any time liable to be brought before the court and punished for contempt. Before the time expired for the completion of the road it seems that Boardman and Sherman caused a suit to be commenced against the company and Kinyon in the U. S. District Court, which complaint alleges the organization of the company, its condition and the letting of the contract to Kinyon, the assignment of two thirds to Sherman and the assignment to Wellman and that under contract he (Wellman) laid out and expended "in cash between the city of Fond du Lac and Iron Ridge in the construction and equipment of the right of way between the points named over $112,000 in cash, and incurred liabilities therfor to the extent and mount of $15,000 in addition thereto." He says in reference to the right of way that the title was taken in his name to evade a claim of Davenport & Co. against the company, which right of way he has always been ready and willing, and now offers to convey to the company. He also alleges that no person other than himself has advanced or expended any money or incurred any liability for the construction and equipment of the road, and also alleges that the same is completed, finished, and equipped, according to the contract, (which he claims has been modified) from Fond du Lac to Iron Ridge, a distance of thirty miles.

The Company in answer to these claims of Wellman says that the original contract has never been modified in the least, except it has been done through the fraud and connivance of Boardman and Sherman. That no meeting of the Board of Directors has ever been held for any such purpose.
The company also alleges that no part of the Road is completed, not even one mile; that it will cost a large sum of money to finish it; that it is not finished in the following particulars: no fences, no such passenger houses as required, no water tanks, nor wells, no windmills for supplying water from wells and that many of the grades are 90 feet to the mile instead of 52 feet, as provided in the contract; that the slopes and embankments are too steep, no ditches, no cuts to carry off surface water; and that the ties are smaller and shorter than contracted for and many of them rotten, and too few by 500 per mile; that large amount of right-of-way is unpaid for, and through Wellman's negligence, expensive litigation allowed to be had on account of unpaid right-of-way; that the road is not ballasted, and in many other particulars unfinished, and different from contract; that instead of the thirty miles being built, there is seven miles of this laid upon the road bed of the Iron Ridge & Mayville Company, no title of which has been transferred to Wellman, or the Company, that and besides this upon one mile or more, they have laid but one rail, and that upon the road of the St. Paul Co. from Iron Mountain to the Junction of the two roads.

Wellman, in his complaint, asks that an account be taken by and under the direction of the court between him and the company and Kinyon, as to the amount of moneys expended and laid out by him, and of the liability incurred in the construction and equipment of the F., A. & P. Railway. That the amount found due Wellman be decreed to be paid by the company in manner and form as stipulated in the contract by some short day, and that the same be declared a lien upon the road bed, equipments, rolling stock, franchises, and depot grounds of the said railway company, default of payment of the sum as found due at such time as the court may designate, and that the Company's road bed, right of way, rolling stock, equipments and franchises may be sold to pay the same. Wellman treating all the materials he put in the road, and the rolling stock &c., as the property of the company.

After the filing of this complaint by Wellman the officers of the Company, realizing that Boardman was not in position to protec the interests of the Company, having, to the personal knowledge of some, taken the papers and records of the Company to the attorney of Wellman, and being in fact the moving spirit in commencing this action, asked him to call a meeting of the Directors to make provisions for defending the Company. This he refused to do. Six out of the nine directors, all except Sherman, Watson, and Boardman, then petitioned the President and in his absence the Vice-President, B. A. Mink, to call a meeting for this purpose; and a meeting was called and had. At the time of this meeting the Secreary, and some of the officers and Directors, called upon Boardman and Sherman to obtain possession of the books and records of the Company, they having been left for safe keeping in the safe in Boardman's office. They refused to deliver them, and although efforts have been made to obtain them they cannot be found and it is believed Boardman and Sherman have either destroyed or secreted them.

Proper persons were then selected by the Board to represent the Company in the suit in the U. S. Court. Hon. C. A. Eldridge and Hon. James Jenkins being employed as counsel.

In due time the Company filed its answer, and if the allegations set forth of the doings and acts of Boardman and Sherman, can be supported it will show a series of deception and frauds which will give these Eastern men anything but an honest record.

It appears that ever since the cars have commenced to run on this Road, Boardman has made contracts in the name of the Company for carrying freight, and, the freight-bills and tickets have been in the name of the Company, and to all appearances the Road has been operated by the Company. I am informed that those men also made up a list of the officers to send other Railroad Companies for the purpose of securing passes, returning A. H. Sherman as Treasurer, when in fact T. H. Mink was the Treasurer of the Company, and otherwise misrepresenting the Company. The Directors finding that Boardman, through his position as President, and Sherman through his position as Director, were doing everything they could to pull down the Company in favor of Wellman, and upon charges of official misconduct, dishonesty and fraud made against them, called a meeting of the Board of Directors for the purpose of trying these men on the charges preferred, and notified them of this. At the meeting they were not present, they having goe to Lowell, Mass. Upon sufficient evidence the charges were sustained by the Directors, and Boardman was removed as President and both of them as Directors, and Mr. Wolf was appointed President, and Alex. McDonald and E. N. Foster Directors, to take their places.

The 1st of January having arrived and no part of the road having been completed, and the contract for completing the road having expired, and Mr. Wellman having elected to place all of his matters and differences under the control of the Courts, treating the property put in the road as the property of the Company, and allowing the President of the Company to manage and operate it in the name of the Company, and the Company having seen fit to change the management by ousting Boardman and appointing other persons, among whom was A. Kinyon as Superintendant, the present exciting difficulty commenced. The Company claims that if it had consented to Boardman managing it after the expiration of the contract, he occupying such a double relation, could, if Mr. Wellman could be better served, claim that the contract was extended after the 1st day of January or as long as Mr. Wellman saw fit, or until Boardman and Sherman could through their operations have the road sold out entirely in the interest of Wellman.

The Company further claims that is (sic) has no desire to wrong Wellman in the least. That he has undertaken to build the Road under a certain contract by a given time. Before that time, he has, through his agents, commenced the action to recover what money he has put in and what liabilities he has incurred, and asking that he have the first lien on the road, treating it, as it actually is, as the property of the Company. The Company is willing to arbitrate in Court whether he should be paid this whole amount, or what he is justly entitled to, taking into consideration the damage to the Company by reason of the non-performance of his contract. The Company first wants him to deed back the right-of-way so that Bonds can be issued with which to pay under the contract. In fact the only thing the Company wants is the undoing of the unlawful acts of Boardman and Sherman, and place the Company in the position which any Court must eventually place it, and as the contract requires, with the title of the right-of-way, which carries with it the title to all the rolling stock and other property, in the Company.

Although Mr. Wellman in his complaint says that he is ready and willing to convey this back to the Company he has not nor does not do it, but has since the commencement of his action given a mortgage upon the road and allowed liens by attachment and otherwise to the amount of $40,000 to be filed.

The Company being in possession of the road will continue to run the same and carry out all arrangements which have heretofore been made.

War and Rumors of War on the Narrow Gauge
An exciting event occurred at the Narrow Gauge depot Saturday noon, in which Messrs. Sherman and Watson and the station agent are leading characters. Several days ago notices were posted at the depot to the effect that Judge Kinyon was Superintendant of the road, and such employees as took service under him would be paid by the company. Sherman does not recognize this change in officers and attempted to tear down the notices. He was unsuccessful at that time and accompanied Mr. Watson Saturday on a similar expedition. When Watson began tearing down the notices the station agent interfered, whereupon Sherman drew a revolver threatening to shoot if they did not give him possession. He was finally quieted down, and left threatening to return and take possession of the train in the afternoon. The police were called to the depot and when the train pulled out, the parties all being on the scene, no move was made by either which would indicate that the threat was to be acted upon. Subsequently a peace-warrant was issued for Mr. Sherman's arrest and if he is brought before the Justice steps will be taken to bind him over to keep the peace. Up to the hour of going to press he had not been found by the constable holding the warrant.

LATER.-The troubles of the different Narrow Guage factions, it is feared, may terminate most seriously. A telegram is said to have reached this city that Judge Kinyon had been shot at Iron Ridge, and dangerously wounded by Mr. Boardman, but as there are no telegraphic facilities on the Narrow Guage, the particulars cannot reach us before the train, due at 12 M., but not yet here, arrives. A large gang of rather rough appearing men is at the depot and threatens vengeance upon Judge Kinyon, who has possession of the train, with only ten men to protect him. The police are also at the depot and expect to be able to quell any disturbance. Excitement runs high, as, remembering the fracas of Saturday and the fact that the use of fire arms has been threatened, and revolvers are carried, the rumor as to the shooting of Judge Kinyon is expected to be proven a fact.

LATEST.-Dispatches via Milwaukee, as we go to press, say Judge Kinyon is uninjured.
Updated March 13, 2004.