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This $1000 GBW&StP second-mortgage bond carried an 8% interest rate.
The Green Bay, Winona & St. Paul Railroad purchased the assets of the bankrupt Green Bay & Minnesota on January 20, 1881. The purchase was funded with $10 million in stock, $1.6 million in a first mortgage at 6% and $3.8 million in a second mortgage at 8%.
Actual business did not match the optimism of the new railroad; in January 1885 the GBW&StP defaulted on interest payments. The railroad floated in and out of of receivership throughout the 1880s. In 1895 a lawsuit by a holder of five shares of GBW&StP stock brought the railroad to its knees and the railroad was forced into bankruptcy, emerging as the Green Bay & Western the following year.
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