The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-08-16
NORTHERN PACIFIC.
The Transcontrnental Line Passes Into a
Receivers Hands.

NEW YORK. Aug. 10. - Thomas F.
Cakes Of New York, w, H. PaEne OF
Milwaukee and Henry Grouse, president
of the Missouri, Kansas and Texas Rail-
road company. were this afternoon APP
pointed receivers of the Northern Pacific
railroad IN the United States court of this
city. The appointment did not come as
q surprise to the street. Although not
announced until after 8 o'clock, brokers
were prepared for the news, as rumors
of such step had been plentiful all day,
Most of the stock and bonds
have recently been taken, it is said /,
by Philadelphia parties. The prin-
cipal selling today was by commits
sion houses and-was thought to be a
liquidation of long stocks.
Judge Lacombe appointed the receiver
on motion Of the Farmers Loan and Trust
company and Phillip d. Winston, and
William C. Sheldon, George R. Sheldon,
William L. Prentice and William G.
Sheldon & Co., as CO. partners, eompris-
ing the firm of W. Q. Sheldon & Co.
The receivership embraces the Northern
Pacific railroad and all railroads owned,
leased or controlled by said corporation.
The receivers are the same as those ap-
pointed in Wisconsin. They gave bond
for $500, 600 in the United States court
there and are ordered to give bond Of
$500, 900 here. The application was made
with the consent of the railroad company
Vice President Williams of the North
ern Pacific saws: ''In consequence of the
extraordinary depression in business and
stoppage of shipments along the line, the
Northern Pacific Railroad company has
been forced TO acquiesce in the applica-
ton for a receiver. No company could
long stand such a severe pressure. The
falling off in earnings is owing to several
causes. The money stringency prevents
the marketing of crops. cattle and prod
ucts OF all kinds; consequently the road
is not getting the traffic usual to this
season of the year. The failure of banks
tied UP money upon which we depended
for cash.
The depression prevailing over the
whole country is exceptionally severe in
the younger states and the general bust
ness along our main and branch lines is
practically at a standsill. The receiver
ship means q preservation of the property
and the preservation OF all interests until
better times. The road has demonstrated
in the past what its earning capacity
really is, and when prosperous times re-
turn, the revenues OF the company viii
again more than exceed expectations of
those interested in the property.
The original bill was filed by the Farm
er's Loan and Trust company for other
creditors and stockholders in the dis
trict court of the United States for Wis
consin, and an appointment was made
there. Today auxiliary bills were filed
in New York, Illinois, Minnesota, Da-
kota, Montana, Idaho, Washington and
Oregon, and the same persons were ap-
pointed receivers in each separate iuris-
diction.
From official sources it is learned that
the main cause for the appointment of a
receiver is that the Guarantee syndicate
or certain members of it failed to make
good their subscriptions, alleging they
had been misied as to the actual condi-
sion of the property. Since the compile
ton Of the Manitoba road to the Pacific
coast the company has had hard
struggle. For instance its earnings for
July were only $2,019, 425, decrease for
the month OF $685., 1850 compared with the
same month of 1892.
Henry G. Rouse who was appointed one
of the receivers it is understood represents
the Standard Oil party which has large
interest in the property. The North
American company has not sacrificed its
Northern Pacific holdings and expects to
weather the storm. Mr.. Cromwell, one
of the counsel for the receivers, said the
receivership is not due to the failure of
the twelve million collateral trust gold
note plan as the entire amount of issue
was subscribed for some weeks ago.