St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-08-16
RECEIVERS SELECTED
Yesterday for the Northern
Pacific Railroad.
MATTER 4AMIcABLY ARRANGED.
7. F. Cakes, H. C. Payne and
H. c. Rouse Put in Charge.
VICE PRESIDENT WILLIAMS
Gives Causes Which Led Up
to the Result
NO CHANGE I'M OPERATING.
MATTER AMIcABLY ARRANGED.
NO CHANGE IN OPERATING.

L
gether with all its branches, is or will
soon be in the hands of receivers. Ap-
plicationS to that end were made in four
states yesterday and granted by as
many Judges of United States circuit
courts-namely, Minnesota, New York,
Wisconsin and North Dakota. All of
the states through which the main line
and its branches pass could not be
reached yesterday, but applications will
be made in the other six as rapidly as
practicable, and within day or two the
courts will have complete control of the
management and operation of the great
transcOntinental railroad, with its thou
sands of miles of road and its millions
of acres of lands that were once part Of
the public doman and passed into the
hands of the great corporation as gift
of the federal and state governments.
The order, so far as Minnesota is con-
cerned, was made in the United States
circuit court, in this city yesterday by
Judge John A. Williams, of Little Rock,
Ark, who is holding the United States
circuit court here.
The Receivers Named
are Thomas F. Oakes, of New York:
Henry c. Payne. of Milwaukee, and
Henry G. Rouse, of Cleveland, o., who
is president of the Missouri, Kansas &
Texas road.
A bill of complaint was filed In the
United States circuit court in this city
yesterday, setting up the several causes
arguing the need of handing over
the Northern Pacific road to a re-
ceiver. The matter was taken before
Judge Williams by James E. Markham,
of this city. as attorney for the petition
ers. assisted by counsel from New York,
while John II. Mitchell Jr. and Fred
erick NJ. Dudley represented the rail-
road company. After reading the long
bill recnunting the condition of the
road and its assets, Judge Williams de-
clded to appoint the receivers named,
to take effect when a bond of $4,000 for
each shall have been filed. Ten days
| are given in which to file the bond
named, which is to be merely temporary
until the facts may be investigated fur
ther, and which may give place to
much large: bond.
The petitioners i'll the bill of COM
plant upon which the order appointing
receivers was made by Judge Williams
are p. B. Winston. of Minneapolis; the
Farmers Loan and Trust Company of
New York; William G. Sheldon, Will
lam p. Prentice. co-partners under the
firm name of William q. Sheldon 81 Co.,
OF New York city. The Northern Pa
cflc Railroad company is named alone
as defendant. The order made by
Judge Williams is to the effect that the
Receivers Take Charge
of the main road and its branches. incud-
It,fr Inn, ,aA ND 81
the usual way, and, after defraying
reasonable operating expenses, hold the
remainder of the receipts for disburse-
ment under future orders of the court
The officers, agents and employees of
the company are directed to turn over
all the property and assets, as we'll as
the receipts, to the receivers in the usual
way. All the books and papers of the
company likewise go into the hands OF
the receivers, and the officers of the
company are restrained by order of the
court from interfering i'll any way with
the complete control and management
of the road by the receivers.
The principal allegation of the bill is
that the company is insOlyent 1t is
charged that the company is unable to
pay the interest on its bonds due in
September and October. 1t extends,
with the main line and branches. over
ten states Debts are becoming due
and obligations are accruing in all these
states. This would lead to litigation in
the state courts of all the states. and
many attachments will be made that
Will cOmplicate the business of
the road to an embarrassing
extent. 1t is further alleged
that the company has leased several
roads and guaranteed the payment OF
the bonds of such leased roads, which II
is unable to meet. This would lead to
the foreclosure of mortgages on the
leased roads and the taking away from
the company of such leased roads. This
sin Central road, and would result in
depriving the company of terminal ia
cilities at Chicago and greatly interfere
with the road.
Earnings Fall OF
1t is also claimed that the gross earn
ings of the company for the fiscal year
ending June 80 last fell 81, 2,OO0, GOO short
of those of the preceding year. and that
the gross earnings for the month of
July in this year are 100000 short OF
the amount earned in July, 1892. The
fail ure of crops is another reason given
why the receipts of the road would be
less, and cumulated upon that is the
statement that the hard times and the
stringency in the money market argue
the necessity of appointing the receivers
as prayed.
Other allegations in the bill are to the
following effect: The plaintiff p. B.
Winston is resident of the city of
Minneapolis. and the other plaintiffs 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
issued under the mortgages named in
the action. After setting forth the Or
ganiZation of the company to operate
railroad and telegraph lines and the
fact that it is the owner of a large
amount of stock in corporations own
ing various branch railroad and tele-
graph lines, the bill proceeds to name
the lines and give their mileage, capital
stock, debt statements, etc. 1t then
names the lines leased by the company,
and sets forth the fact that they are all
operated as unit known as the North
ern 2 acfic system, which also controls
va st tracts of land and property in va
rIOus states. The company has its cap
ital stock divided into shares of S1OO
each. There is outstanding S49,OO000O
of common and S36, 900. 600 of preferred
stock.
A Heavy Debt.
A list of mortgages and bonds Issued
is given, showing that the funded or