St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-09-26

DECISION OF u S. JUDGES.
WHICH WEIGHTED DOWN THE w. p
Headquarters of the Central
Restored to Milwaukee.
GENERAL BUDGET OH. r.. VIEWS.

MlLW AUkEE, w is Sepl. Z0.-JuQgcS
Jenkins and Seaman, in the United
States court today, granted the petition
OF the Wisconsin Central Railroad COM
pany for the cancellation of the lease OF
its lines to the Northern Pacific COM
pany. and the Central company will
now operate its own system. The opln-
ion was verbally delivered by Judge
jenkins, who began with review of
the preliminary features Of the case,
concluding with the statement that the
case resolved itself into a consideration
OF the following questions:
FirSt-Ought the receivers be required
to adopt the lease?
Second, if not, if equity does not re-
quire ratification by the receivers,
should it be ratified as matter of good
business judgment in the interests Of
the Northern Pacific.
The opinion held that the lease of the
Chicago u Northern Pacific to the Wis
conSln Central was part of the con-
tract by which the Wisconsin Central
was leased to the Northern Pacific, but
the position of the Chicago d Northern
Pacific, it was held, was that of any
other creditor of the Northern Pacific,
hence its petition was not entitled to
special consideration 1t was added
that If the lease should be surrendered
the Wisconsin Central would become
liable to the Chicago & Northern Pacific
for rentals.
LII the consideration of the advisable.
lty of the adoption of the lease by the
receivers, it was held that an outlet to
Chicago was of material value to the
Northern Pacific. but that it was a
heavy financial burden. With this view
the earnings, it was held, must be taken
into consideration to discover if they
We're sufficient to warrant the mainte-
nance of the Chicago terminals.
LII rendering the decision Judge Jenk-
lns said that all examination of the ac-
counts submitted to the court showed
that since the lease took effect i'll 1880
the Wisconsin Central had been oper-
ated at loss of 81, ,142, ,3l6, aud the Chi
cago u Northern Pacific at a loss of
81, ,304, 169.
The opinion reviewed the matter of
profit and loss to the Northern Pacific
by the operation of the leased lines.
concluding that for the past three and q
half years. when business was eXcep-
tionally good. the loss was over 81, 49,
900.
Judge jenkins said it must be remem-S
bered that the showing whereby it was
ascertained that the Wisconsin Central
had been operated at a loss was for
three very prosperous years, and did
not indicate the loss that the Northern
Pacific might sustain if the receivers
were required to ratify and continue the
lease In the present stagnated condition
of trade. He added that if the Chicago
u Northern Pacific were to be deYeI-
oped as property, it must be done by
the parties whose money is III that prop
erty. ana not by imposing a burden
upon the insolveng Northern Pacific.
He held that the S19.0OO,OoO OF Chicago
& Northern Pacific stock held by the
Northern Pacific was practically worth
less in the hands of the latter company,
RESUMES ON HIS OWN ACCOUNT.
Edwin II. Abbot, president of the
Wisconsin Central company and the
Wisconsin Central Railroad company.
tonight issued General Order No. 1, as
follows:
The United States circuit court hav-
ing this day granted the petition of the
Wisconsin Central companies for pos
session of all the railroads covered by
their lease to the Northern Pacific Rail-
road company, these companies will
now resume the operation of their re-
spectiye railroads. The operating Offices
are re-established in Milwaukee. Henry
F. Whitcomb, formerly manager of the
Milwaukee, Lake Shore & Western, is
appointed general manager, and will
make all necessary arrangements for re-
ceiving surrender of these properties
from the receivers of the Northern Pa
citic company and for the operating
thereof. The financial and accounting
departments in Milwaukee will be in
charge of Vice President Frederick
Abbot.
THE ACTUAL LOSS.
The actual loss in the operation of the
Wisconsin Central lines proper, the
opinion states further, was but S23, 900
for the three and half years, the total
loss given including that which was IN
Cured in the operation of the Chicago
& Northern Pacific terminals. The loss
WAS colslueIeu mere lOan 10 lne Cnl-
cago d Northern Pacific which that
company was to pay back at such time
as it should become able.
What the Chicago d Northern Pacific
could do in the future could not now be
considered, said the judge. 1t was
splendid enterprise and would no
doubt be profitable one, but in con-
serving the estate of the Northern
Pacific, the insolvent company, the
court could not calculate on the hopes
OF the future.