The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1893-08-16
ITS BUSINESS FELL OFF
Reasons for the Condition the n. ?.
Finds Itself In.
ITS VICE PRESIDENT TALKS
The Depression. He SAYS. Is Un-
usually Severe In the Young
States-Why Receivers We're
Appointed.

New YORK, Aug. i5.-Thomas r. Oakes
of New York, w. II. Payne of Milwaukee
and Henry krounze, president OF the Mis-.
souri,, Kansas d Texas railway, were this
afternoon appointed receivers OF the
Northern Pacific railroad in the United
States court of this city.
The Northern Pacific and Great North.
ern companies have decided to restore
freight and passenger rates to the basis
prevailing in February. TO go into effect az
soon as practicable. The other transcon.
tinental lines are expected to follow the
example of these two companies.
The appointment of receivers did nos
come as a surprise to the street, although
IL was not announced until after 3 o'clock.
Brokers were prepared for the news az
rumors of such step had been plentiful
all day. Most of the stock and bonds re-
| Gently had been taken, it Is said, by Phil
adelphia parties. The principal selling to-
day was by commission houses and IL was
thought to be the liquidating of long stock.
The Post this evening states IL Is reported
that a receiver may bc appointed for tho
North American also.
Judge Lacombc was appointed receiver
on motion OF the Farmers Loan and
Trust company. and Philip ID. Winston
and William &. Sheldon, George X. Sheh
don. William L. Prentice and William Z.
sheldon & Go. as co-partners, comprising
the firm Of w. &. Sheldon 4 Co.
The rcceivership embraces the Northern
Pacific railroad and all railroads owned,
leased or controlled by said corporation.
The receivers are the same rs those APP
pointed IN Wisconsin. They gave n bond
OF $1,000 To the United States court there
aud are ordered to give bond of $4,000
n. h.
consent of the railroad company.
Vice President Williams of the Northern
Pacific says: in consequence OF the
extraordinary depression OF business and
the stoppage of shipments along the line.
the Northern Pacific Railroad company
| has been forced tn acqulesce IN the APP
| plication for u receiver. No company
| could long stand such severe pressure.
| The falling of in earnings is owing tn
several causes. The money stringency
| prevents the marketing of crops, cattle
aud products of all kinds: conse-
aucntly the road is not getting the traffic
usual at this season of the year. The
failure of banks has tied up money on
| which We depended for cash. The de-
PRECISION prevailing over the whole country
Is exceptionally severe In the younger
states. So general business along our
l
s,andstill. A rcceivership means tho
preservation of the property aud ths
preservation of all interests until better
times. The road has demonstrated in tho
past what its earning capacity really Is,
and when prosperous times return, tho
revenues of the company Will again more
| Than exceed the expectations of those in-
tercstcd in the property
The original bill was filed by the
Farmer Loan and Trust company, and
| other creditors aud stockholders in the
district court OF the United States for
Wisconsin and the appointment was
made, there to-day. Auxiliary bills wero
filed in New York. Illinois, Minnesota,
Dakota. Montana, Idaho, Washington
aud Oregon and the same persons were
appointed receivers In each separate
jurisdiction. From official sources IL Is
learned that the main cause
for the appointment of re-
ceiyer is that the guarantee syndicate. OF
certain members of II, failed to make
good their subscriptions. alleging that
they had been msled as to the actual con.
,l.tion OF tho property. Since the comple-
ton of tue Manitoba road to the Pacific
coast. the company has had a hard s,rug-
gle for existence. Its earnings Tor July
Nerc only S2,0ia.i2j, decrease for the
month Of SJo'.siD compared with the
same month ia ls,i.
Henry e. Rouse. who was appointed one
of the receivers. IT is understood. repre-
seuts the STANDARD oil party, which has
a large interest IN the property. The
North American company has not sacri'
feed it, Northern Pacific holdings aud
expects to weather the storm. Cromwell
Que of tile counsel for the receivers, said
, the rcceiycrship was not due TO failure
, of the sl2.ODOOj) collateral trust gold note
, plan, as the entire amount OF the issue
was subscribed for some weeks ago.