, 1873-08-07
guatt Saund dispatch.
|hthern Pacific Rail Road in
"a Bankruptcy.

publishes an elaborate report Of pro
-eedings in Bankruptcy. instituted 10y
the Bondholiers agains, the FIRST Divis-
ION Of the ~. Paul and Pacific Railroad
Company and the 81. Pinl and Pacific
Railroad Company, which complaint is
directed against the Northern Pacific
R ,iIroad Company as the assignee If
the two Companies before ntmed. The
bonded Indebtedness of the First Divis-
ion and the st. Paul and Pacific Com
,mnits i. as follows:
On maiu line Of First Division. .....$ S.950.0U0
va brni II III, st ''aal to " .;ab.. 2,75U, 900
vn xteniion Of lines of st. D. Il ?. st.
Cloud to st Vincent. dis'unce of
about slu mil, a. Xatab 10 Brai.
paid, about ~ NIL s............ 1".1oo,0oo
Total bonded debt. ....... 81, ,4UO,OOJ
In addition to the bonded debt there
Ia lalge floating debt against said
Companies, all which We're assumed
an guar .nteei by rhe Northern Pa ltic
r abroad Company in purchasing the
p orelty and franchise, Of said Conn q
ny, siuce ~huh the Directors OF the
latter Company have been III pos-ession
of, and exercised sole control over the
", Coz Yanies first nam d. HAT after
the transfer had been ,naie to the n
2. Co.. $40. 700. 900 of the bonds of the
other npauie> were pla .ed upon the
mlrke III Amsterdam Holland, aud
IS. 800 900 was realize. ON the same.
! hat said roceedS of sal bonds were
not appIid t" the construction Of the
two extension lines, according TO the
term, uf the ir ,n>fer. but more than
hat thereof Wa. n'isappropriated and
USED for olher purposes. That work on
the extension iiue< was suspended III
the simmer of 1872 aud has not been
Resumed. That the Company has not
na be abi,ty and me rs {" 90 on and
cum,iiete said lines. And that unless
ss,id lines are completed by the 81 OF
December next, the bands al pertaining
thereto will be forfeited uy the explrn-
tlni nf .h- grant on that date. And
that as said iIues now stand they are
bn' n,lie s-cuity for III; bouaS iSsnea
thereon, and the only chance for the
b .ndhnld.,s to make themselves secure
is to complete. the two lines before the
81 la Of December next. SO as to ST.
cure the lnnlS.
The bill charges by affidavit, that the
management of the Company has been
waste fn and negligent and Mil 5t, ruin
ous to the Interests of the said Cumpa-
nv ami the holders OF its Uond> If coii.
tiuu-,i III The hands of those now COLI
olIng It That said Companies have
d. fanlred in ym-nt of interest on their
b III ~. and are unable to pay the same:
nr burirned with Il large floating debt.
aLd all THEN pr 'p"r,y Is nl"rteased tor
more tuan II, value The affidavit re-
cites. among other things. >.that > .5UO. 900
# the bonds ecured BY So 900 O0O
mortgage upon the main line It the First
DIVISION were turned over to E. d.
Lichti, ID ms pa. meni for the stock sold
xn transferred 10y him to the Northern
= .cltc Company, BY which tran>aciion
the Northern Pacific Company becane
hole owner of uli tie stock ut the FIRST
Division Company. Since which. the
rond has not been kert IN repair. but
has been suffered to greatly depreciate
in va,ue.
| Upon these charges and allegations
Vii therefore asks that Receiv r
be PIP" ed by the Conrt to take pos
/ srs,ion. control and mar agemeut of the
lines Of road and all the property of the
! FIRST Division If the st. Paul and Pacific
Company, and shat th. Receiver shall
have authority to raise means and COM
piete The exte' sion lines by the LIST Of
December next.
Upon this bill Of complaint and &C
comranying affi.lavits, Judge Dillon or
dered that the defendants appear at
Chambers III Davenport. Iowa. July 20.
~ 10 A. NJ. to show cause why a Recei-
yer shall not be appointed pending the
suit. ~ prayed in the complaint.
Though the names of other CoInpn-
MES are impl-aded in this suit. the man
! ag-ment and direction Of those Compa
nies. liability FIR thei- debts. defauft III
the pa. m-nt of interest. mlsapproprla'
ton of funds. bribery of railroad Off
ciai with Sl.5UO. 900 borrowed ON the
credit uf the Company whose rish's
were transferred ther+b, all the chnrs
and specifications in the bill. belong to
and are against the Northern Paeific
Railroad Conwany. The bankruptcy of
the other Compnnies--essub!i by
every fact hut judicial ann,nneem-nt-
Is the bankruptcy sbe N L. Co. TINS
exp od-s another attempt to use u mu
nitic+nt subsidy Of the Government for
the purposes af "a magnificent swindI-.
The report WAS at 81. PAUL. and pnb-
lisht i the papers, that Gen Cass had
r-signe the Presidency of the Comps,
ny. If b. has lot. it is pretty &c, tam
he will soon, as 1t WAS generally under
stood at Il u time. that he accepted the
position only under III. assurance that
the manaeen. ut Of the Company should
be freed from the control Of the Ring If