The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-16
Its 5.262 Miles Of Track. Equipments. Etc,
Turned Over by the Court 10 Thomas T.
Oakes, W. Ii. Payne and Henry c. Rouse.
The Guarantee Sy Indicate Was Unable
to Make Good LIS subscriptions
Decreased Business and the Money Stringen-
cy. Also. Contribute to the Troubles of the
Road-A Few Unimportant Failures
IN THE HANDS OF RECEIVERS.

The Northern Pacific Railway suocumbs Co
The Financial Stringency.
NEW YORK, Aug. 15.-Thomas f. Cakes,
of New York. II. w. Payne. of milwaukee,
and Henry G. Rouse, president OF the Mis-.
souri,. Kansas * Texas railroad. were CD.
pointed receivers of the Northern Pacific
road in the United States Court this after.
noon.
Vice President James B. Williams. of ths
Northern Pacific. makes this statemenS
In consequence OF the extraordinary de-
preston of business and the stoppage Of
shipments along Its line. the Northern Pa
cifc Railroad Company has heen forced TO
acquIesce in an application for the ap-
pointment of receivers. No company could
long stand such severe pressure. The fall.
ing of in earnings is owing
to several causes. The money strin-
gencY prevents the marketing Of
CROPS, cattle and products OF ell kinds, con-
sequently the road is not getting the traffic
usual to this season of the year. The fall
ure Of banks has tied up money upon
which we depended for cash. The depres-~
sion prevailing over the whole country has
been exceptionally severe in the younget
States. SO that general business along our
main and branch lines has been practically
ct q standstill. Payment of bond interest
under such circumstances could have been
carried out only by borrowing money and
increasing the floating debt. which would
have entailed heavy sacrifices upon the
bond and stockholders OF the company.
The receiVership means therefore. the
preservation of the property and
conservation of all interests until
better times. The receivers appointed by
the court are Th0s. K. Cakes, the presidents
of the company; Henry Z. Payne. of Mil
waukee, a man well-known throughout the
Northwest as one of the most high standing
and experience in large corporation affairs.
who was for many years counsel for the
Chicago. Milwaukee & ST. Paul railuay,
and Henry c. Rouse. the chairman and
shown q strong grasp of affairs as railroad
manager. With such men for receivers all
parties can feel that the affairs OF tho
Northern Pacific Will be conducted ably
and honestly and for their best interests.
The road has demonstrated in the past what
it's earning capacity really Is. and when
prosperous times return. the revenues OF
the company will again moro than exceed
the expectations of those interested In tho
property" The original bill wasfled by
the Farmers Loan and Trust COMPANY and
other creditors and stockholders In the
district court of the United States Court
for Wisconsin. and the appointments were
were filed in New York, Illinois. Mime
sofa. Dakota. Montana. Idaho. Washing
ton and Oregon, and the same persons APP
pointed receivers In each separate jurisdio-
tion.
The Northern Pacific Railroad Company
was chartered by the act of Congress July
2. 1864 The road was foreclosed in August.
1875. and was reorganized Sept. 20, 1875. 80
by to-dsy's action forthe second time in it's
history is passes into the hands of
receivers. 1t owns and controls mileage
of 5.262 miles. including the Wisconsin
Central and the Seattle. Lske Shore 81
Eastern, which it controls with the Cana
dian Pacific. Its capital stock 10 $40 000.00
common and $780, 237 $50 preferred stock. 10
has paid dividends on Its preferred stock
as follows: In 1888. ii per cent; nothing In
1884 to 1889. inclusive; in 1890 and 1891. per
cent; in 1892, In January and in April.
and nothing since then. The funded debo
Of the system Is SlS4. .954. 600. Its floating
debt of 80. 3S5. 526 was supposed TO have been
provided for recently by q asyndicate which
subscribed for el2. 900 collateral trust
notes. of which 60 per cent, so officials have
claimed. have been paid. Henry Willard
was prominent in its affairs until quite
recently. when he retired from active man.
agemenL
From an official source it Is learned that
the NJ main cause for the appointment or tho
receivers is that the guarantee syndicate,
or certain members OF 1t. failed TO make
good their subscriptions alleging that they
had been mislcd as To the actual condition
of the property. Sinco tho completion or
the Manitoba road TO the Pacific coast the
company has had hard struggle, sno tho
depression of general business during the
past six months has also addod to the COM
plexities of the situation. For instance,
Its earnings last July were only e. 0l9. 425.
decrease for the month of S690. $50 as com.
pared with the same month in 1892
The Farmers Loan and Trust Company. OF
this city. made the application for the re.
cefvers and Judge Lacombe granted their
request The compliments in the case are
the Farmers Loan and Trust Company. as
trustees OF the collateral trust notes, and
William G. Sheldon & Co., OF New
York. and Phillip l.. Wilston. OF Minneapo-
lls, the latter two representing all GLASSES
of creditors. Henry c. Rouse who was ap-
pointed one of the receivers of the Northern
Pacific road, to-day. il is understood. reo-
resents the Standard Oil party. which has
large interests in the property.
In regard to the North American Com.
pany. 1t is stated that the company had not
expects to weather the storm.