The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-08-16
N RECEIVERS HANDS
Northern Pacific Railway Com
pany Held to Be In
solvent.
T. f.. Cakes, II. G. Payne and
II. c.. Rouse Now in
Charge.

M1LWAUAEE, aug. ~. - uo NOItu
Pacific Railway company is in re-
eeivers' hands. Judge Jenkins has ap-
pointed Henry G. Payne of this city,
Thomas F. Cakes of New York and
Henry G. Rouse of Cleveland as the re-
esivers. They were appoin ted in suit
brought by P. B. Winston, the Farm
ers' Loan and Trust company of New
York, William C. Sheldon and William
p. Prentice, co-partners, doing business
under the firm name and style of Will
lam G. Sheldon & Co., against the
Northern Pacific Railway company.
Miller, Noyes b Miller of this city, are
the attorneys for the plaintiffs. Each
receiver is ordered to file bond for
$500, 900 within 10 days. They are Or
dered to take charge of all the COM
pany's property to manage it as re-
esivers usually do, paying out what is
necessary for the operation of the road
and holding the balance subject to the
order Of the court. The officers of the
company are restrained by an injunc-
ton from interfering with the oper-
ton of the road by the receivers.
Complainant's Bill.
The bill sets forth that the plaintiff,
p. B. Winston, is resident of the city
OF Minneapolis, and the other plain tiffs
Of the city of New York. The Messrs.
Winston, Prentice and Sheldon are
stockholders of the company and the
Farmers Loan and Trust company is
trustee for the holders of the bonds is
sued under the mortgages figuring in
the suit After setting forth the organ
ixation of the company to operate rail-
road and telegraph lines and the fact
that it is the owner of large amount
of stock in corporations owning various
branch railroad and telegraph lines,
the bill states that the gross earnings of
the company for the year ending June
30, 1892, are stated to have been $751;
S99, 1896 and it's operating expenses $780,
465, OOS, leaving surplus of 1884, S98.
For the fiscal year ending June 80, 1898,
the gross earnings amounted to $780,
800. 81 and the operating expenses to
81, 4SO, 1877, leaving deficit of $540, O66.
In these figures are not included loss
of $267, 3O1 in operating the Seattle,
Lake Shore and Eastern railroad and a
loss OF $l75, 900 in operating the Chicago
and Northern Pacific terminals, which
would make the
Total Deficit $072.767.
In May, 1893, it is stated, the COMPANY
undertook to fund its indebtedness and
issued collateral trust in debenture,
since which time it has made strenuous
efforts to carry out its provisions, but
has failed. The price Of the company's
bonds is stated to have rapidly declined
within the past few months and the
company is alleged to have exhausted
its resources A list of the interest loan
about to become due is given and it is
set forth that the company is indebted
TO Sheldon & Co. in the sum of $3.50, 900.
It is alleged that the company will not
be able to pay either the interest
moneys, the sinking fund charges, or
its other debts, and the plaintiffs, there
fore. ask for the appointment of a re-
ceiver and such other relief as the court
can afford. 3 The defendant company
fled an answer admitting that it's
earnings have been falling off of late;
that it's expenses have been exceeding
1ts earnings; that there is no prospect
OF an increase of its gross earnings in
the near future; thatits funding scheme
set out in its collateral trust indenture
Of May II, 1892, has failed and that it
Is insolvent and will not be able to pay
the interest, sinking fund charges and
its other debts as set forth in the com.
plant.
At At New York.
NEW YORK, Aug. 16. Thomas F.
Cakes of New York, II. c. Payne of
AGS1sx.axal