, 1878-01-19
SATURDAY JAN. 10, 1878.
How They Got Out of Debt.

The Oregoniaa and other Or
sans of the N. P. Co., base their
support of the demands Of that
company upon it's substantial
solvency and established credit,
making it the; only organization
known which can control the
means necessary to build the
road, and such concessions as
that company may demand the
only way by which that result
can possibly be accomplished
Upon this point the Oregonidn
says: alt is asked in tone that
resembles a sneer if we are to
consult the wishes or willing
ness Of the Northern Pacific COM
pany in this matter Of building
a road. Incredible as it may
appear, this is just tho conces-
sion that must be made to any
company that really proposes to
build the road. 1t is a matter
that cannot be forced"
From the investigations of Mr..
NcGilvra it appears that the
boasted capital and credit of the
n. P. Co., is that Of a bankrupt
who covers his assets from his
creditors by a sham sale, but has
not, yet obtained discharge in
bankruptcy. Mr.. McGilvra says:
"I find that a suit, apparently
OF a very amicable character,
was commenced in the Circuit
Court of the United States for
the Second Judicial Circuit and
Southern District of New York,
entitled: Jay Cook, G. Tower,
J.,F. Smith, }. Hosmer, w. S.
Lane and w. H. ,Seawald against
the Northern Pacific Railroad
Company. The plaintiffs are
the Trustees named ill the mort
gage.
;.May 18th, 1875, a decree was
made in this case, which decree
directs and orders that all prop
erty of the company except the
lands and the land grants which
are herein specifically provided
for, be sold as an entirety in
New York city" The decree
further provides that the lands
and land grants be sold in par
GELS of "single sections or subdi-
visions in the States or Terri
tories where situated.
Commissioners were appointed
to make these sales. On the 18th
day of August, 1879. these Com
missioners sold to Johnson Liv-
ingston, Frederick Billings, Jas.
n. Morehead, John Ketcham,
George Stark and Jas. NJ. Den
nison, for the sum of one hundred
thousand dollars, the franchise
and property of the company as
an entirety, "excepting only
lands that have been conveyed
to said company by letters pat
ent of the United States, or GER
titled to or for said company by
land offices of the United States
in the several Territories and
States where the same are situa-
ted, remaining undisposed Of"
"The Commissioners have re-
ported their sale at Now York !;
but the sale has not been con-
tirmed, and no conveyance has
been made by the Commissioners
to the purchasers; and further,
no sale or attempted sale has
been made by the Commissioners
of the lands and land grant in
the States and Territories
"How il can be claimed under
this excuse, that the property
and franchise OF the Northern
Pacific Railroad Company has
passed into other hands is more
than l can conceive.
cit is said that there is some
arrangement or agreement be-
tween the bondholders of the old
company and the so-called new
company, by which the bonds
are to be converted into prefer
red stock of the new company.
That, however, cannat effect the
legality or the merit of the pro-
ceedings of foreclosure Of the
mortgage. The original bond
holders, who are not parties to
the arrangement, can, and ought
4o ,ra,st nDon the full and com.