Obviously, it will be at 10:00 or some time after, since train 1 is at the station and train 2 is coming directly toward the station. And it will be 11:00 or some time before, since after that, train 1 is going away from the station to the north and train 2 is going away from the station to the west, so they are only getting further apart.
If you define t to be the number of hours after 10:00, the position of train 1 is (0,100t) and the position of train 2 is (120(1-t),0). So you can use the distance formula to get the distance between the two trains as a function of t. Then you find the minimum by taking the derivative and setting it to zero.
As a check, you can use some intuition - at 10:30, the trains are the same distance from the station, but train 2 is moving faster so they're still getting closer together. So your answer should be a little after 10:30.
Post again if you're still having trouble.