The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-08-16
Wreck of the Northern
Pacific.
INTO RECEIVERS HANDS.
The Step Was Taken With the Con-
sent of the Directors and
Stockholders. ~.
Special to THE MoRNINe CALL:

=. New. YORK: Aug. Is Thomas. F. Ca kes
6f. MN York: 81. W.ePayne of Milwaukee
and, Henry :Cr0uSP, president of#the Mis-
souri,. Kansas: and. Texas Railroad Com
.pany. were: this afternoon appointed. re-
ceivar> of the Northern Pacific Railroad in
The United States court in this city.
These receivers are the same as those ap-
pointed in Wisconsin.
They gave bond IN $500, 600 in the United
States court there. and are ordered 10 give
bond for $4,000 here. The application
was made with ;he consent of the railroad
company. Ju &c Lacombe appointed the
receivers on a motion of the Farmers
Loan and Trust Comrany and Philip ID.
WATSON and William c.. Shrldon. George
r. Sheldon, WiFiarn L. Prentice and Will
liam G. Sheldon IL Co., as copartners, COM
prsing the firm; of w. c. Sheldon Co.
The receivership embraces the Northern
Pacific Railroad: and all railroads owned,
LEASED or controlled by said cooperation. .
The appointment of receivers did not
come as asurprise TO the street. Although
not announced until o'clock, the brokers
we're pre- AIRED for the news, as rumOrs OF
such II step had been plentiful all day.
Most of the stock and bonds sold recently
have been taken, it is said, by Philadelphia
parties. The PRINCIPAL selling to-day was
by commission houses. and II was thought
there would be liquidation of long stock. J..
The Post this evening states that it is
reported that a receiver may be appointed
for the North American also. o..
Concerning the receivership, Vice PTesi-
dap lion Of ha. paf.ifp
"In consequence of the extraordinary de-
preston in business and the sto' page of
shipments along the line Of the Northern
Pacific Railroad, the company has been
forced 10 acquirsce in the application for
receivers. No company could long stand
such severe pressure. The falling off in
earnings is owing to several causes. The
money stringency prevents the marketing
of crops, cattle and products of all kinds,
and consequently the road is not getting
the ffic usual TO this season of the year.
The failure of banks has tied up money
upon which We depended for cash. and the
depression prevailing over the whole cOun-
try is exceptionally severe in the younger
States, so that general business along our
main and branch lines is practically at a
standstill. the receivership means the
preservation of the property and the con-
servaton of all interests until better
times"
The road has demonstrated in the past
what its earning capacity really is. and
when prosperous times return the reye-
nues of the company will again more than
exceed the expectations of those inter-
ested in the property. The orig inal bill
was filed by the Farmers Loan aud Trust
Company and other creditors and stock
holders in the District Courtof the United
States for Wisconsin, and the appoint
ments were made there. to-day. Auxiliary
bills were filed in New Y ork, Illinois, Min
nesota, Dakota. Montana, Idaho, Wash
ingtou and Oregon. and the same. persons
were appointed receivers in each: separate
jurisdiction. =. ~
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. had failed to
make good their subscriptions, alIegn 6
that they had been misled as to the actual
condition of the property. Since the CON-
pletion Of the Manitoba road to the Pacific
Coast the Northern Pacific Company has
had a hard struggle for. existence Its
earnings for j uly were only S2,019,425, a
decrease tor the month of SOS, $50 =: com.
pared with3the same month in 1SQ2.:::-. -.
Henry c: Rouse, who was appointed one
Of the receivers. is: understood to repre-
sent the. Standard Oil party; which has i
large interestin the property. .,.#.:> =.
The Nhrth. American Company has. no,
sacrificed its Northern Pacific holdings anG
expects to weather the storm. -
Cromwell. one of the counsel for the re-
ceivers. said the receivership was not due
to the failure of the So, 100000 collateral
trust gold-nOte plan, as the entire amount
of the issue was subscribed for some week!
ago.
The Northern Pacific and Great North.
ern companies have decided TO restor,
freight and passenger rates TO the basi,
prevailing last February, to go into effec
as soon as practicable. Other transeonti
mental lines are expected to follow this ex
ample.
LOYAL ARCHBISHOP CORRiGAN