New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-17
RECEIVERS TO MEET SUITS.
NORTHERN PACIFIC TANGLES.
A STOCKHOLDEE DEMANDS RESTITUTION
OF DIhECTORS
PROBABLE OPPOSITION 10 MAINTAINING WIS
CONSIN CENTRAL LEASES-BRAYTON IvES'S
PROTEST AGAINST OFFICIAL PRAISE
OF HENRY WILLARD.

OF HENRY WILLARD.
II became more evident yesterday that the re-
ceivcrshin into which the Northern Pacific Rail
road was thrown on Tuesday afternoon was
probably the first step in considerable litigation
in which the insolvency of the company may in
volvc ITS affairs and that of its Managers The
shock Of the announcement had comparatively
slight effect upon the security markets. generally
but the prospect Of a reorganization seems 10 DO
clorIdcd by the probability OF series oi suits III
regard TO the past acts Of the companyS dlrec-
tors and the relations 1t sustalns TO te NUMEROUS
corporations which are now controlled py leases
or other contracts Already steps nave "ch
taken preliminary TO an attempt to recover rom
several Of the Northern Pacific directors sums
alleged 10 have been inisapplied in the conduct OF
its airars. The process OF recohs'ruc'ihs I'll"
company's finances promises TO be long one ana
q 70 imnos.ihle 70 foretcll the hardships which
may confront the shareholders ana cr0iiVo's i'll
final adjustment Of its obligations.
COURSE or THE SECURITIES
The influence upon Wall Street OF the open
confession Of bankruptcy naturally was adverse,
but market values quickly rallied from IL lor
the day. The Northern Pacific stocks were them
solve. STAYED in their downward course On
a handful of dealings the common stock rose
after opcninr at Sl5 ?5 rose to Sl7 80 share
ocain.t Sl6121-e at Tuesdays close. But moro
serious effect was shown in the bonds oi tlc
Northorn Plc6c and its allied companies North
crn Pacific consol - wcr" active c'rlN' anu az
Ter n fall TO 20 IA, closed at 80 - against sd
on Tuesday. The first mortgage bonus. c"upo''
fell : 3-s per cent to 100 Ia, ana 'he r'S''
tered bonds IA 10 % 1S, ana the thlrus droPp''
! T., ccr cent TO Go. Chicago and Northern Paciiic
drs,s opened - per cent lower at A. ana
ended at a. Wisconsin Central iirsts dechheu
- points - 60.
II was learned yesterday that Phl'aneiph'h
stakeholder in Northern Pacific had w1htch 70
,bo oaiccrs demandinr that they institut" pro-
| cccdings at law against Henry WHARF. H'"i,
II Abbot Charles l.. Colby and Colgate IIovt. all
directors of the company except Mr.. Nillaru,
| vino retired in June. to secure restitution o.
or,,. ollogcd 10 have been improperly dl-
| v.rtod from th. company. The writer Is sald -
| bovc CHARGED a gross mi,nanag"m"nt, from "Il'"
| bo believed that SlO.dOo.O 600 had been lost |"
,bo .tocsholders This sum- hr contrn led should
IN, recovered from the directors named hN u's''
action on the part of the r"c"lN"rS' "i'''
| replv has been made. If any. by IN" "il'"rs ~
receiver, is not known. but persons III Il P'
sition 10 know the facts declare that this sto'N
| holder in cn-n the receivers decline 4" act VIII
institute IN Independent action AT Ia" against
tb, directors on account Of th" alleged mlNap-
| nlications and diversions. That TINS acton i
not begun Immediately is said 10 he p'can7'
Of tle requirements Of the law thit stocNnol"'i'
.L,l first s.ck 10 have their representatives III
confrol ~ the property appK Tor ? r'"'"N'
70 ArRoGATE LEASrs AND CONTRACTS.
II is considered practically certain 'hd' 'n'
oor,n,nv,. affairs Will lc confronted with other
,h, plfE nj
,,.,,,,cmcnt will come under review hy the
c,ur,. T-pecallv j. this probable IN cas-" Il To-
or,aniz,tion is attempted with Vi"r 10 pre-
TN. ,I,. l.,s... and contracts by whlch 'h'
xr,torr Pacific acluircd control OF IN" Nl''"n-
| -, c.rtr,I the Chicago and Northern faclr'' 'h'
! fhicooo and Calumet Terminal Railway ana "'li'''
| ,.r,ics Tho anti-NiaId -ccuIity-hold"rs con
| ,.rd ,b,t th,ec companies have been Hr'lnS up'i
| tho Northern Pacific proper. and sh'nlu w. i'"p
| N in my scheme of rehabilitation INV pun
- ,bc extension Of Northern PacIilrS terminus
| 80 CLi,aqo Is declared 70 have been r'Sp"nslo' '"'
/ rho pr7ent insolvency of the company "''
have excited hostility from co'nP''ihI ''''N -"
toad ~ pr,.orvng the friendship "i All III ~ =
! io IN. Northern Pacific proper al -. i'"'.
/ may H.. son, time. however before lI''-"' y"
| rcr,rd 10 these matters j. h"V"h' ""' ~
~ ,..,.rd.v that a starting place ml@ht De-
q ,.t-,.
.l.a ;ut,.,,.t an the first mortgae" bonds OF '''
r,;..',, and Xortbcrn Railroad iuc on October J.
,.',,uo ,o fine ant-Nlllad stockholders
| ;.s ,tt.,ppt will be mad" 10 resist any ~
! ,i.,i,u ot thc Northern PacInc pae'N ." wv
49,. os rr,s.ryiue the obligations to the ~ ""
=, cor,r,l and its collateral prop"rtl~ I'''
| ,cI,boldcrs hail the rccciN"r'llp ~ ~
| o,,;ug q prospect for an attempt !" ~
| vo,,bn,n Pacific from connections "e''r'" ~
burdens upon it, and To place II "p'" i
| basis and i'm the category oi stri''N '"'"'
% ,,bich il was originally devoted.
,,nah hitter complaint was heard yesterday IL
o. ,bo secrecy and swiitncSs with Whl'h Wv P''''
for n rccnivcr.lip was carried OUT. Inc ~
| l,Jonod that the officers of the '''nP'"' a."
| r,od IN the suit without authority H'"' "
boord Of directors. II was sad by "'''-'',' ~
'r,.,, chat nm. director was assured as "t" IL
Monday by President Cakes tha' '"'
.,. hn,ond danger of "A rcccivership, ana Il" W''''
out Of the city on business with 'h'' "',''
., Inc informed by a telegram of the appoln','''
" ,r.''ta, I,rc. security holder also declared
| that he had been repeatedly "Ns"r'u ~ Wv
| ,;cr. of the safety Of the company at ''"
h,, ,h. n,ncrs for the rcccycrshp must nave
,, rr.n,riur even if they were not coHlP'u'"'
| Ihnr. were LONG consultations yesterday y"
| ,,o, Tbomas f. Oak.'s, the president ah' o"'
or th. receivers of the Northern Paclh'' anu
Henry C. Rouse, president of the Missouri nan
.,s and Texas and another receiver, bu' h'I'"''
man could hr reached by reporters 'rr-i ,'''-
dent Williams and James McNaught ana "i'''"
| Nelson Cromwell, of counsel for the r''lN',''
said that there no further statement u"
made respecting the situation MI Wv
said that the receivers were com ','''
legal details and their appolntn'" ,W,' Wv"
been confirmed for the divlNl"hS Ill '''''''' .;,.
consin and Montana this there had not n'th 'ii"''
~ Ia nn Trosd,v Little further light was
thrown upon the question of the syndicate "'
ranecmcnts for guaranteeing the collateral 'ruS'
loan t. cover the floating debt. Mr. M'N"us"'
said that 90 per cent upon subscriptions u PiV