New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-16

while In the city, was not at his Office and could
not be found. and John D. Rockefeller. who
ceeded Henry Willard director early in June, is
In Cleveland. Henry Willard went out Of the city
before the news OF the receivership was learned
In none of the official statements given out was
there any indication of the actual condition OF the
property in specific terms No estimate could be
obtained OF the extent of the floating debt but
counsel for the receivers asserted that the funding
plan adopted in June would hold good under the
recevership. Charles l.. Colby, prominent d.
rector. also said that he believed that the plan
would not be adversely affected by the placing of
the company under the protection of the courts
Mr.. Colby said: The gentlemen who subscribed to
the syndicate guaranteeing the success Of the col
lateral trust loan of high standing, and think
that they will meet their engagements Their Sc
curity is ample for the property has great
earning capacity and will come out OF its troubles
all right When times improve. the earnings will
improve with them Now that the step for re-
ceiyershin has been taken ] should not wonder
II the bonds of the company would advance on the
news"
The plan for the funding Of the Northern Pacifc's
floating debt was adopted AFTER the relecuoh Oh
an offer to finance the companys anairs made
by an influential syndicate OF bankers orsa''iIeu
by Brayton Ives president of the Western Ma
tlonal Rank In behalf of the stockholders opposed
TO Henry Wizards management The directors
plan received it's chief support from Johh H.
Rockefeller and his friends who had advanced
large sums to relieve the company press'ns ne
cessities Il was contemplated to ISSUE Sl-"V'""
collateral trust notes bearing per cent interest
and redecmablc after 1896, To take up ou'S'a"u'"s
loans and provide new money for the company.
The collateral trust loan vas to be secured py
100000 Northern Pacific consolidated per cent
bonds; 100000 Chicago aad Northern Iacnc "'''
mortgage bonds. 100000 Chicago ana calumet
first mortgage per cent bonds N"V"oo" o. i'",
and Northern Pacific stock. sl5.oloo~ Chicaso anu
Northern Pacific stock and $4,000 Northern
pacific rxpress stock a total OF sil.553c0 at par
value When the success OF this sche'"c "a'
officially announced there were many persons VINO
believed that the danger OF receiVe'ship n.''
been averted. But IL Is not known ho" i' Wv
subscriptions To the new loan represeh'en 'e'e'y
an assent to an extension by existing Creu'o'' anu
some bankers doubt that the syndicate mas con
tribued any considerable amount OIL od'" " '"pp''
the company with needed funds.
The anpoIntment Of the receivers naturally
started speculation as to the possibility OF re-
course TO receivers certificates 10 hnalce '"'
affairs OF the Northern Pacific Whether inns step
will be necessary cannot be known uhUi '"e re-
celyers make a detailed statement as 10 the exact
condition of the collateral trust loan ana t"e
probable money needs of the company. Inc gloomy
outlook as respects future earnings has III 40 Wise
b.an concealed in the application for receiver
ship or In the official statement OF |ice-fTes"eht
Wiiame The picture drawn OF the loss vi "e
mining traffic and the shrnkase resulting ilo'"
the general depression of business along the "o
# the road was considered in Wall Street as
indicative of doubts whether the gross earnings
for seine time would be able to cover operating ex'
ne,ses II they do not do so, the question OF re-
cciyers' certificates will become an early ana All
important one.
In the statement given out by Sullivan & Crom-
we'll counsel for the receivers, 1t Is hinted that sus
gestions for "A reorganization OF the company nave
already been considered 1t is entirely too early
vet for any attempt 10 estimate upon what lines
= reorganization would be projected. Many con-
sentative bankers who have studied the Northern
Pacific property have long conended that lts pu'ue"
OF fixed charges would finally carry the company
down irrespective OF existing conditions whch were
not foreseen when the criticisms were made the
stockholders committee. which last year published
4 scathng attack upon the management charged
that the system had been sadd!ed with numerous
unprontablc leases and contracts ana especially
denounced the assumption ~ tn Wisconsin 'ehU"'
Company and the terminal Properties ~ lineage.
There is not likely be- any discussion 81 r'orsdhl-
zaton plans without vigorous participation 10y tne
security holders VINO all along have opposed iIenIS
Nulard's influence In IN" company aidirS' hnlons
these men the feeling is bitter at the appointment
of Thomas T. Oakcs the president OF ne COMPANY,
To b. one of the receivers y parhlel - ulaM,
be, w.en tho case OF Northern Pacific ana that OF
the Philadelphia and Reading and It's prcsldcn' MI,
Mel cod. A. Henry Willard has withirawh rom from
,bc management 81 the Northern Paciilc these
critics arc unable TO complet" their paral.i, put
sir Oak"s a. looked upon as thc repr's'htaitlr' ~
Mir Willard To- whom hc owe MS selrc' i,, hs
president some years ago. Besides TINS anu mari
feeling which sim exists among som, o., his
Northern Pacific security holders. IN spite oi ms
formal retirement. IN" question OF ieolgthlIatoh
r,st embrace. I'm its consideration IN" r-tapllshed
rnmule,ion of the Great Northern Halfway from
Tho lakes t. the Pacific SLOPE. ana IN NE trrIlotS
where the Northern Pacific long heh undlspu'ed
sway. . 49,, IL. go o,couro cling
feature is the report that the Northern I atInc
and III. Great Northern had decided 10 r'stoii'
both freight and passenger rates to thc pdSiS ~
f,rcc las, February Al order TO this effect Is sald
~ have been sent out To the traiic managers laSt
SATURDAY and the new rates VIII go mo cue, az
s",u 49, new schc luios can be made and the notice
required by the Interstate commerce law d" con-,
pli.d With This step would mean m" cessation ~
"A savage OF rates that has pr"h S''ciclS Act !"
Inc earnings OF the Northern Paci'c.