New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-16
IN THE HANDS OF RECEIVERS.
NORTHERN PACIFICS FALL.
THOMAS F. OAKFS. HENRY c. PAYNE AND
HENRY c. ROUSE APPOINTED.
STATEMENTS MADE IN TIE COMPLAINT

THE SUIT BROUGHT BY THE FARMERS LOAN
AND TRUST COMPANY AND OTHEEs-THE
CoMpLAINANrs SAY THAT THE COMPANY
Is NOT soLvENT-TIIE ACTION
FRIENDLY ONE TO PROTECT
THE PROPERTY AND ITS
CREDITORS
Receivers for the Northern Pacific Railroad sys
TEN were appointed yesterday in suits begun almost
simultaneously in Milwaukee and in this city.
The receivers named in both places were Thomas
+. Oakcs, Of this city; Henry {. Payne, OF Mil
waukec and Henry c. Rouse, of Cleveland. The
appointment in Milwaukee was the original one,
and n bond of $500, 900 was required there. IN
der the ancary in the United States Circuit
Court for this district the bond was fiNed py
Judge Iacombc at $4,000. The bond had not
been filed before the clerks office was closed yes
tcrday afternoon II. B. Turner and Il. H. Sui
livan, representing the plaintiffs, and Henry stan
ton for the Northern Pacific Railroad Company
went quietly TO Judge Lacombes office early yes
terday afternoon, and the order appointing the
receivers was signed by Judge lacombe and I'M
medatcly filed in the clerks office.
| The suit in which the receivers were appointed
here was begun by the Farmers Loan ana trust
Company, of this city: Phillips ID. Winston, oi
! Milwaukee, and William {. Sheldon, Heorgc Is.
sheldon, William ). T. Prentice, and William {.
Sheldon, r comprising the firm of w. G. Sheldon
N Co., of this city. The Northern Pacihc Rail
road Company was the defendant. notice of
appearance by Mr. Stanton counsel for the rail-
| road company and an answer in the suit were
filed at the same time with the complaint II was
apparcnt from the manner in which the documents
were prepared that the action was entirely
friendly one, and that the officers of the company
had prepared for such a proceeding. The com
plant sets forth that the Farmers Loan ana
Trust Company is the trustee under some Of the
mortgages given by the railroad company. Mr.
| Winston il an owner of stock of the company OF
| the par value of $4,000, and Sheldon N Co. own
consolidated per cent mortgage bonds of the
par value Of $4,000, preferred stock OF the par
value Of 81 00O common stock of the par valu" Of
81 900, and are creditors to the amount Of Sl42,
3Gl 10, against which they hold $4,000 par
vanc Of the collateral trust gold notes of the com
! pny. There is now n default in paying the re-
quired margins on this loan.
THE coMrANY's PROPERTY DESCRIBED.
The bill Of complaint contains an elaborate de-
-cription of the company's property. The main
line and the Cascade branch run from Ashland,
Wis. 10 Tlcoma, Wash. and Portland, Ore.
and with the branches there are j.?62
miles of track controlled by the road. list.
Of thirty-one tributary roads is given, the roads
! varying In lolgth from fc' miles 70 several
hundred The company also controls th" Puget
Sound and Alaska Steamship Company, aud leases
| and operates many other roads and terminal com-
panios ear companies. conl COMPANIES and depot
companies description Of which fills several
pages Of the long bill Of complaint
| |, al.u fnI
| nearly I..O0O.00O acres were granted 10 the
company of which il now owns 3S.i3o.?si. II
has a capital Of Si9.OoO,O00 common and $50.
OO0, 900 preferred stock.
| \ description of the mortgages. aggrrgatlng
about $50 900. j. also given. Since My
The company has issued collateral trust notes TO
the amount Of SlO.Oj0.0oO. l'ccntly there has
been q marked falling of in the earnings of The
company, "occlsioncd' the complaint slys " in
part by the decrease in immigration. in part
by tli" depression in business aud the string.n'y
in the money mIrkct. and from other causes.
The COMPANY il is SAID, will not h" able I"
arm IT, operating cNp"nc' aud is no' solvent.
SOME oF THE ROADS OBLIGATIONS.
TIE company had on May l. $685. floating
debt Of about SIl 900. 600. To cover this ii is
sued collateral trust notes, dcposltng sccurl-
ties belonging to the company. ani over So
600. 900 Of these notes were lssu"d. ! he So
cuIiios deposited have. however. greatly dcrlln"l
IN value There is a floating debt of : 100000
secured partly by Northern Pacific consolidated
bonds bonds Of the Chicago and Northern Parlhr
and stock of the St Paul and Northern Pacific
| roads The price of some of the sccuriiic' has
been rapidly declining, and still declines in value"
| The holders Of tie notes calling for new
margins and the company will not BE- abb" to
rcspond TO the further calls for margins IN"
securities held as collateral for the loans woull
| not if now sold. rcaiiZ" enough To p1y tn
creditors.
There will be due on September |, the com
plant states, interest and sinking fund charges
principally on the Pend dOrcillc Division mort
gage. S3q3 ,OO0: irnt under the lease Of the Wis
consn Central, Sl5?. .0O0 and bills payable, S3l9
, 600 On october there will be- interest, sink
ing fund charges, and other pay ymcntS due 10 TIE
amount of Sl,127,630, besides some OF the hoat
| inc debt ON November | there will be- Interest
, and sinking fund charges and collateral trust
notes due aggrcgatng >i5O.GJ0. On December
| the interest and sinking fund charges, mainly
ON the third mortgage, Will amount to over 81,
jOO,o00 There are no funds TO pay te'' lars'
amounts of debts soon to become payApl" ,
The complaint then srts forth the evils whlcl
would result from allowing these DEBTS To go u
separate judgments in various courts ol ''
country II judgments were obtained on separate
mortgages rs due. the result would pe ulShS'Io"'
The company owns lanus III i"'A ',.' ..,,',,,
. the great land rants made by the noV"rIn"'h,
Separate Judgments would be obtained against 'aci
small parcel of land, there would be a race o.
diligence a1d an anxious seeking Tor priority
among the creditors. II is largely 10 piotec
thcs. great diversified interests that the ana o.
the court is sought by the appointment oi 'h'
receivers.
ADMITTING MANY OF THE STATEMENTS OF Ill
u COMPI\INT
The fact that an application had already peer
made in the United States Circuit Court wv
, ,nth Circuit. for the Eastern District oi we
{ ! consin is also stated in the complaint. lh'
i answer filed on behalf Of the company auhi''
q many of the facts set forth in the b'li oi com
plant The complaint is verified py ilrsl'n