The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-05-21
THE CHARGES.
Lake Shore Officers Answer
Minority Stockholders.
THE ROAD NEVER MADE MONEY.
They Say. % the Contrary. II Owes the
Northern PsGidG-Chsirman Midseiy
% Lunbss Rates.

The answer of the Northern Pacific
Railroad Company. the Seattle, Lake
Shore 4 Eastern Railway Company and
the trustees Of the latter company 70 the
complaint OF Thomas Earle and Angus
Mcintosh, asking Tor an in junction gains
the execution OF the traffic contract be-
tn cen the two railroad companies and for
thu appointment Of a receiver 70. the Lake
Shore road, was filed with the clerk Of the
United States circuit cour, yesterday. IL
denies all the material allegations OF the
complaint. while admitting the purchase
Of the majority Of the stock by the North
srn Pacific and the making Of the traffic
contract.
The claim that the Lake Shore has made
large earnings, sufficient to have made q
prof. after paying all charges. Is denied.
and it IL alleged that the road never has
earneI a dividend and that IL could no.
have been operated 80 a. to have done so.
Il is claimed that the stock has nc value
except such as 1t might have for purposes
Of control and that its earning have not
been affected by the Northern Pacific ex-
cept in the way of an increase. The claim
that the Lake Shore could have been oper-
ated at = profit il denied, as Is that
there is any custom OF allowing
arbitraries TO such . road. The
removal Of the books is acknogi-
edged - . matter OF convenience,
bu. il r. claimed that the plaintiffs have
not asked TO be allowed to see them or
they would have been accorded the right.
The removal Of the Boulevard shops is ex-
cused on the ground thai, the company was
elected by the Smiths Cow Land Com
parry, which owned the site. and that the
repairs could be made more economically
at the Northern Pacific shops. The Seat
tie depot, the answer says. is used jointly
by both roads. the Northern Pacific paving
10 per rent. and the Lake Shore - per
cent. OF the expenses; the machinery from
the shops has been sold and the proceeds
credited to the Lake Shore; the
Northern Pacific has been obliged
% lend cars aai locomotives to
the Lake Shore. and when one uses the
cars and locomotives of the other due
crsdi. IL given. showing of the finances
OF the Lake Shore is made, according TO
which 1t Is in debt TO the Northern Pacific
TO q very large amount and the traffic con-
tract Is iiled as a part Of the answer and
its provisions are defended as Just to the
Lake Shore. 1t is also alleged to have
been beneficial to the Lake Shore by aid
Ing in the development of the reyources OF
the country tributary to its line. The APP
pointmcnt Of a receiver is opposed on the
ground that IL would be injurious 10 the
interests OF the road.
The answer Is accompanied by afidayits
Of James u. Williams. president: George
b. Baxter, treasurer; George II. Earl,
secretary; w. =. Mciien, general manager,
j. NJ. Hsnnaford, general traffic manager:
8. q. Fulton, assistant general freight
agent: NJ. r. Martin. auditor: w. O.
Chapman, assistant secretary. and !. A.
Nadcan, formerly superintendent OF the
Lake Shore road, denying various parts of
the allegations Of the complaint.
The hearing was set for yesterday before
Judge Hsnford, but by agreement it was
continued until May 81.