The Helena independent., 1893-12-29
WANT OTHER RECEIVERS,
Petition TO Gust Oakes, Payne and
Rouse From Charge Of the
N. P.
Tho Document Goes Over tho
Ground Covered by tho
Ives Faction.
Willard, Onkss and Others Are Accused
OF Wrecking the Road for Their
Own Gain.

CE1CA6Os Decs ZS.-In0 Nofth0S0 Pact0o
hailroad company. by silas W. Petit. Of
Philadelphia. general counsel. fled to-day
at Milwaukee. before Judge Jenkins In the
United States court, . petition for the se-
moynl Of the present receivers Of the road.
Thomas F. Oakes. Henry G. Payne and
Henry 9. Rouse. The bill covers the same
general ground AZ the Ives committee re-
port of about year ago. and declares that
Oakes. ~ president Of the company. ap-
pointed II. G. Kalston. president Of the
farmers Loan and Trust company. OF New
York. chairman Of the finance committee
Of the road. At this time. II il assorted.
had $2.O00,0OO cash In the treasury. The
Cakes Ralston board managed to increase
tho interest charges for branch lines from
$26. 600. 600 to $86 900, 600 inside Of one year.
for tho acquisition Of properties. which,
with one small exception. havs never paid
the cost Of operation.
Ths petition further charges that the
officers and directors were themselves in
terssted In selling properties TO the North
ern Pacific company at exorbitant pToht to
themselves. The petition names In detail
the railroads thus acquired by the North
arm Pacific, and which thus completed it,
trnin within one year Of the Oakss. Ralston
board getting into Iowsr. It alleges that.
in tho construction Of the united railroads
in Washington. tho members Of the board
derived profit Of &1.75O.OO while tho
operation cost the company in ono year
$l65 600.
It ID charged that a syndicate, of which
Henry Willard was president. and which
included many members of the Northern
Pacific board Of directors. divided among
the Rocky Fork & Cook City road. of
which $1,000 600 Represented coal lands
worth only 100000. and the other 42O0O,-
GOO tho Rocky Fork road, which cost about
$500. 900. This road the directors caused
the No,thern Pacific to buy from them
selves for 81, 100000. By similar methods
profit Of $2,000.000 out of the Northern
Pacific q Manitoba deal, shis line having
been operated AZ . loss of $780, 600 annu-
ally. TO the company. Also the directors
Guarantssd the interest on $4,000. 900 addi-
4ionat bonds of railroads a. branches to it,
~ ystem, and in no single instance have tho
esrnings!been equivalent to tho interest 10
guaranteed.
Charges OF a similar nature are made in
connection with the construction and
operation of the Seattle. Lake shore g.
Eastern. Matters pertaining to the Chi
ospo & Northern Pacific are trented at great
for this line and depot at Chicago was $10.-
0O0.0O0 in excess Of the cost of the property
conveyed, and the profit from this deal
was divided among many Northern Pacific
directors.
The bill contains many minor allegations
Of extravaRant and reckless manaRemsnt
by the men whom the court IL now asked to
remove as receivers. The petition shows
that as consequence of this reckless waste
OF the company's assets and addition to its
obligations. the credit of tho company rap
idly deprecated. 50 that the float
ing debt could not be taken
sioa Of o. oaaD and Rason S a' bill H'a wa.
1led for the appointment OF q recsiver and
Oakes recommended as such. which bill
was filed without the knowledge OF many
Of the directors of the company. who were
kept in ignorance that any application for
q receiver had been prepared or was neces.
sary.
The petition shows that receivers we're
appointed for 6stsen branch lines. the sx-
penses of operation being thereby largely
increased; that in al twenty-thrse differ
ont sets of receivers were appointed by and
subject to the Jurisdiction Of six different
courts, adding enormously to the expense
of operation besides 'seeivers' fsss. law
tion AYERS that the stockholders represented
by the board Of directors, have cause Of
action aRainst she late directors. including
Oakss and Rslston. for the various trans
actions set forth; that IL Is necessary for
tho now board to have free access to the
books and accounts; thas inasmuch
a. action for restitution must be
brought in the names of tho receivers
and 1t 10 not competent for Oakes to sue
himself, therefore IL ls absolutely necessary
that ho be removed and another receiver
appointed In his place; that IL 10 necessary
a reorganization should be had. whereby
tho property can bs put upon solvent
basis, and this cannos be done and the
large sums of money raised which will be
necessary to bring it about 60 long as the
company is managed by the receivers Ap-
pointed At the instance of and in sympathy
with the board OF di eotors whose fraud
and Incompetence have wrecked the com-
pany; and that the receivers should be re-
moved and new recsivsrs appointed In
whose management the stockholders and
the public have confidence SO that they can
formulate md carry out plan OF reorRani-
2ation whereby the company's debts can no
paid and il restored to y solvent basis.