The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1893-12-29
CHARGES AGAINsT RECEIVERS.

CHARGES AGAINST RECEIVERS.
Chicago, December 2s Tho Northern
Pacific Railroad company, by Silas w.
Petit Of Philadelphia, Its general counsel,
filed today in the circuit court of the
United States al Milwaukee a petition for
the removal Of Thomas f. Oaites, Henry
c. Payne and Henry c.. Rouse, the pres
ent receivers and the appointment Of
other receivers ia their places The Pc
tftion sets out that Oakes, as president Of
the company, appointed x, q. Rolston,
president of the Farmers Loan and Trust
company OF New York, which is trustee
OF most of the main and branch line mort
cages Of the Northern Pacific Railroad
company, chairman OF the finance conf
mittee of the Northern Pacific directory.
The petition then states that when the
oakes-Rolston board took charge Of the
Northern Pacific IL was in good financial
condition, with high credit; IN ihct,
paying property
The petition then goes ON to say that
the oakes-Rolston board managed Ito IN
crease the interest charges of the North
ern Pacific company, principally by the
acquisition OF properties, none OF Whien,
except one, has ever paid the cost Of
operation and fixed charges and many OF
which do not even pay the cost of opera
lion; and the petition further charges that
in several instances. and those the most
disastrous 10 the company, tile officers
and board of directors themselves were
Interested in selling properties TO me
Northern Pacific company at exorpitant
profits 10 themselves.
The story of the collapse OF the Northern
Pacific lis then set out in detail, naming
particularly each Of the railroads acquired
nv the Northern Pacific company, ana
which the bill declares completed us rum
within the year Of the Oakes-l toistei,
board getting into power. II IS declared
49,. Net
cakes as vice president and II, @. Rolls
ton as chairman Of me finance committee
took an active part in Violation OF inelr
dnty to the Northern Paeiiis R;piroad
company and that Roiston, as chairman
OF the finance committee, throush hlihseil
az president OF the trust company the
trustee IN most of the mortgages. includ-
no tne consolidated mortgage, aided In
the increase of the obligations OF the
Nnrthern Pacific Railroad company, 70
tbat IN one year IL was loaded down Win
tha interest Of s60Oe0.000 bonds issued or
Guaranteed by 1t for worthless proper les'
Cor these reasons the court is asked "
remove the receivers as ineomipstsii. ~
ysilft1Ifv extravagant men. The petition
ayars that by coilusien between Oakes.
as nresident. and Rolslon, as the president
~ ~ frust company bill was hled ~
J3oiefon's company, the Farmers Loan anu
Trust company Of New Aprk. ttus,ee ~
me rnortaages OF the Northern Ihsilio
ana most of tile branch line companies
t sar anT,ointment 81 Il receiver; that upon
~ ding OF the bill Thos r. Cakes was
soso1,,i,,ts,,Slea 10 the court for appoint
,,,sut M g,th receiver for the purpose ~
nanttniipg Inc control and management
N me cakes -Rolston party, ana Wnien
bin was iiled without enc hhoMlses 49,, ~
many OF the directors o. VIC $3.50 y. -,
pseiac Railroad company. WHO we're Kept
IN Ign irnoranee Of the fact that any appll,,
natler for q receiver had been prepares
90 =. me necessary The bill closes BY
gaclarina thar the road can not ee e.
orsanized unless It's control Pc put n ,as
names Of competent people, ana " ~ ps9p ~
now in control. i deciAfea' as ~
l Nd nd