The herald., 1893-08-16
GONE INTO 1 REGEVERsH|R
The Northern Pacific Railroad
Up a Stump.
Hard Times Rendered Its Business
Improbable.
The Guarantee Syndicate Went Back
ON Its Contract = Receivers Ap-
pointed to Protect the
Property.
By the Associated Press.

NEW YORK, Aug. l0.-lnOmas
Cakes OF New York, H. W. Payne oi
Milwaukee and Henry Grouse, president
of the Missouri. Kansas and Texas Rail-
road company, were this afternoon ap-
pointed receivers Of the Northern Pacific
railroad, in the United States court, this
city. The Northern Pacific and Great
Northern companies have decided to
restore freight and passenger rates to
the basis prevailing last February, to 60
into effect as soon as practicable. The
other transcontinental lines are expected
to follow the example Of the two COM
panies mentioned.
The appointment Of receivers did not
come as q surprise to the street. Al.
though not announced until alter .
O'Clock, the brokers were prepared for
the news, as rumors of such step had
been plentiful all day. Most OF the
stock and bonds sold recently have been
taken, it is said, by Philadelphia par
ties. The principal selling today was
by commission houses and was thought
to be liquidation of long stocks.
The Post this evening states that 1t 10
IopOrb6Q tQ6b IoColVoT may 10 oP-
pointed for the North American also.
Judge Lacombe appointed the re-
ceivers on motion of the Farmers Loan
and Trust company and Philip d. Win
ston and William G. Sheldon, George K.
Sheldon, William L. Prentice and
William G. Sheldon & Co., as CO.
partners composing the firm OF William
G. Sheldon & Co. The receiverehip en-
l. L. I'd all vail
roads owned, leased or controlled by
said corporation.
These receivers are the same as the
three appointed in Wisconsin. They
gave bond OF 100000 in the United
States court there and are ordered to
give bond of $500, 900 here. The appli-
railroad company.
Vice-President Williams of the North
ern Pacific says: I'm consequence of |
the extraordinary depression of busi-
ness and the stoppage OF shipments
along the line, the Northern Pacific
Railroad company has been forced to
acquiesce in the application for re-
ceiver. No company could long stand
such severe pressure. The falling of
in earnings is owing to sew
oral causes. The money strin-
yency prevents the marketing
Of crops, cattle and produce of all kinds;
the road was not getting
The traffic usual to this season of the
year. The failure of banks tied up the
money upon which we depended for
ash. The depression prevailing over
he whole country is exceptionally se-
'ere ia the younger states. So the gen.
'ral business along our main and branch
ines is practically at a standsti!l. The
means the preservation of
;he property and the conservation of all |
until better times. The road |
las demonstrated in the past what its
,arning capacity really is and when
prosperous times return the revenues of
he company will again more than ex-
eed the expectations of those interested
n the property"
The original bill was filed by the
farmers Loan and Trust company and
'ther creditors and stockholders in the
district court of the United States for
Wisconsin, and the appointment of re-
SEWERS was made today. Auxiliary
bills were filed in New York, Illinois,
Dakota, Montana, Idaho,
and Oregon, and the same
)eIeOus bppOluteu IeColVoIb III eaCQ
eparate jurisdiction.
From official sources it is learned that
he main cause for the appointment of
eceivers is that the guarantee syndicate
y certain members of it failed to make
.ood their subscriptions, alleging that
hey had been misled as to the actual
condition of the property. Since the
of the Manitoba road to the
Pacific coast the company has had a
lard struggle; for instance, it's earnings
or July were only $2,019. 145, decrease
or the month OF s678, 1860, compared
With the same month of 1892.
! Henry @. Rouse, who was appointed
me of the receivers, ia understood to |
epresent the Standard Oil party which
las large interests in the property.
The North American company has not |
acriiced its Northern Pacific holdings
nd expects to weather the storm.
Cromwell, one OF the counsel for the |
eceivers, said the receivership was not
lue to the failure of the $12, 2,000, 900 COL |
ateral trust gold note plan, as the entire
mount of the issue was subscribed for
h. o~o