St. Paul daily globe., 1893-08-16
DEPRESSION DID IT.
Why the Receivers We're Put in
Charge.


New YORK, Aug. 15.-Vice President
James Il. Williams, of the Northern
Pacific, makes this statement: In
consequence OF the extraordinary de-
preston of business and the stoppage
of shipments along its line the North
ern Pacific Railroad company has been
forced to .acquiesce in an application
for the appointment of 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 ana products of all kinds:
consequently the road is not getting the
traffic usual to this season of the year.
The failure of banks has tied up money
upon which we depended for cash. The
depression prevailing over the whole
country has been exceptionally severe
In the younger states. SO that general
business along our main and branch
lines has been practically at StandStill.
Payment Of bond interest under such
circumstances could have been carried
out only by borrowing money and in
creasing the floating debt, which would
have entailed heavy sacrifices upon the
bond and stockholders of the company.
The receiSership means, therefore, the
preservation of the property and con-
servation Of all interests until better
times.
The receivers appointed by the court
are Thomas f. Oakes, the president of
the company; Henry G. Payne, of Mil
waukee, a.man well known throughout
the Northwest as of the highest stand
ing and experience in large corporation
affairs, who was formerly and for many
years counsel for the Chicago, Mil
waukee q st. Paul railroad, and Henry
c. Rouse, the chairman and president
of the Missouri, Kansas d Texas rail-
way. who has shown Il strong grasp of
affairs as a railroad manager. With
such men for receivers all parties can
feel that the affairs of the Northern
Pacific Will be conducted ably and hon
eStly and for their best interests. The
road has demonstrated in the past what
its earning capacity really is. and when
prosperous times return the revenues of
the company Will again more than eX-
ceed the expectations of those interested
in the property.
The original bill! was filed by the
Farmers Loan and Trust company and
other creditors and stockholders in the
district court Of the United States fol
Wisconsin in the appointment made to-
day. Auxiliary bills were fled in New
York, Illinois. Minnesota. Dakota, Mon
tana, Idaho, Washington and Oregon,
and the same persons appointed receiv-
ers in each separate jurisdiction"
The Northern Pacific Railroad COM
pany was chartered by act of congress
July ,, 1864 Tie road was foreclosed
in August. 1879. and was reorganiZed
Sept 30, 1873, so by today's action fol
the second time in its history it passes
into the hands OF receivers. 1t owns
and controls mileage Of 5,562 miles
including the Wisconsin Central and
the Seattle, Lake Shore Il Eastern,
which it controls with the Canadian
Pacific. Its capital stock is
S49,000,000 common, and $50. .237, ,S5(
preferred stock. 1t has paid dividends
on its preferred stocks as follows: III
1855, ii per cent: nothing in 1854 to 1SS!
inclusive: III 1890 aud 1891. per cent
in 1872, per cent in January and IL
Ap and nothing since then The
funuud debt OF the system is SS4. 954, 600
It's floating debt of So, ,3S5. $50 was sup
posed to have been provided for re
Gently by a syndicate which subscribed
for 81. 600, eco collateral trust notes, o
which 60 per cent. so officials have
claimed, has been paid. Henry NillarC
was prominent in its affairs until quite
recently. when he retired from acuy,
management Of its affairs.
NoOiliciai reason has been given 70
the appointment of the receivers. but a
the offices of the counsel of the receiv
els. William Nelson Cromwell, it is an
nounced that an official report will b
given out late in the day. From a.
official source it is learned that th
main cause for the appointment of TIL
receivers is that the guarantee synd
cate, or certain members of it. failed I
make good their subscriptions, allegin
that they had been misled as to tn
actual condition of the property. Sine
the completion of the Great North
ern road to the Pacific coas
the company has had har
struggle, and the depression @