New-York tribune., 1893-12-29

sl4S990 900 in mortgage bonds and $2ZoV9OVy III
the capital stock for the property OF the Bridge
port and South Chicago Railroad Company, s-
100000 In bonds and S2.2J0.OO0 in stock; anu M i9I
the property of the Chicago. Harlem and BataWa
Railroad Company they paid SlO0oOOo III DoluS
and 81. 800 900 in stock.
VALUE OF THE CHICAGO PROPERTIES.
The petition then adds that these Chlcaso
properties could not be made to earn interest on
the bonds issued. and that in the endeavor to
improve them the Northern Pacific Company
which controlled the Chicago and Northern IA
ciic Company. caused it to issue uP"aIu ol
S. 600 900 more of bonds. and also purchased INC
line os the Calumet Terminal Railroad company
at an expense of S6.0OO.OOO Of bonds an ui M4ACn
are guaranteed by the Northern Pacihc I.alIoau
Company. and now outstanding as colla'erh
security for its debts. NO
we'll c. Rolston that. as chairman OF the hnahce
committee. he called on himself as president ol
the trust company 20 certify &.0OO,OOO OF con-
solidated bonds TO be applied to certain speclHG
purposes and which. under the mortgage couiu
only be applied for such purposes, hut wIilch ne
as chairman OF the finance committee lToVecueu
10 use for the general purposes of the company
- -,on not only Of his duty as chairman ol
~.e Inance committee. but also MS uuN as % .ie
nresident OF the trust company, trustee OF lle
mortgage and in fraud Of the rights OF the Dohu-
holders. -. =, ,o,,,a,,enca of
this. the credit oc the Northern faclnc NTh Snht
many rap;dly Deprecated so that its hoatlhs ueo'
eeuia not be taken care or ana that tncieupym nn'
by collision, a bill was filed by Ros'Oi ; ' Cou
An the Farmers Loan and Trust Company,
~ Sew-York' trustee Of the mortgages of the
Northern Pacific, the Chicago ana cl,,nn,. NolunrtH
Iosci0c the Calumet Terminal Railway Company,
and most of the branch line companies lor the
appointment Of receiver +, O,ohor
This bill was fled IN September, and in OCTOBER
the annual election took place. ana thereupO @ tiIe
stockholders turned out the old board OF dlrectos
and elected the new board, of which brayt0n ives
is president and Mr. Harris Is Vlce-preslueht.
Tho netition asserts that the bills Tor sSpdIdle
receivers were all collusve. ana that 5oi 'me
purpose Of making out prlma lacie cas- ~ 800,
g thnSA
Zoe for the Northern Pacific Railroad COMPANY
transferred them to an empioye OF 'he @ re-! ~, -
so as to maintain the sult anu IL Gn a,,t IN con-
r. receivers were derelict in their duty III COR
sar,ing IN the dsmemberment or the NoitHe,"
Pacific system. and in submltuhS WI'nouJ noi,.erc
lection to the appointment oi p"erata6 hv the
Tor railroads which as they were opeIdtcu pS ~ ~.
Nor,hern Pacific had no debts whateVei anu n .iIe
stock and bonds Of which belonged TO '"e ->o' u"
ern Pacific. .,. u e,od o, order was is
sued bv Judge Jenkins to show cause WHY ,. ~
should not be granted Attorneys arr ~ pIdge
the order, which will be pfeseh'e" ~
TINS netition is the work Of the Brayton Ives
faction Of the stockholders whioh gal%leu % hoan
,rol of the road last fall ana when mas peeh
ontaporizinC the present receivers TEit "'0i'S;
They have been sending letters TO hli III tlv 0,o ~
employees who were discharged asklns aeiaDt rllem ~
tast,fy against the management OF iIesiueI'
Oakes and have by this means gathereI Id. -
amnunt of evidence. 1t is said MI ives, nr
nresident Of the read. is desirous OF uecot.nSS
ana,,er and he will undoubtedly be appointed
reeen ,hn Court decides favorably on the petit
ton. - -, ,.. Gov CT Pa,l to-
~ 80 a+tand 10 business in connection win
the threatened strike of the empioYes. Mi, t
PAYNE declined to be interviewed lesaIuIilS ss ~.
petition asking for the removal OF 'he Ie'ei'''''
WHAT Mr. PETIT HAS no SAY.
Chicago Dec. 2s.-Silas W. Petit genera cou"-
sel Of the Northern Pacific road, arrived III .n0
o,,, ,o-n;gbt from Milwaukee, on his way to ms
dol
sNe have won the first rouhd. 1he pc i,s,
NJ record and rule has been entered asa,i,o .
tho receivers to show cause within uWeht! uaG iiI
whv tbev should not be removed The case VII VII
come M again on January 10 or 1t. INC
newt thing in order will be reference ~ % 90
master for the taking OF testinon!, az, az ,,mg
viii then have an opportunity of demohsuauns
that one and all of the charges we nav lo iar
are capable Of proof. The people aedisC ~ rni1,
shass charges are directed will, OF course rep!
that they are innocent Of wrongdoing, anu tna'
they acted for the best interests OIL 'e bpU,
ration We will join issue with 'hein anu ,h Inot
beyond peradventure W--ere anu NV "
ing was accomplished. .., 10, IN
ss1abe for instance the Manitoba deal IN
which the Northern Paclhc was sauuiSu nS which
Ave millions for a road the business oI MlliSn
scarcely more than pays for the coal loI eiIe
trains that go over it, can any sucH Il 1 al1t-o .
ton be explained away on ~ ,1anv The
And vet this is only one case OF many. IN
fact is we have reached point where the loo. @
ing of American railroads must stop ai,I ny 1oVP
for good II is such methods. more than any
,bine else that are undermining the confidence
of foreign investors and depreciating american An
securities A clearing Of the air is heceSsaI!'
1 and 7 am satisfied that the course OF the
NNorthern Pacific in this matter, apart from us
II own interests will have healthy effect
RECEIVER oAKEs NOT TALKING.
st. Paul. Dec. 2s-The attention Of Receiver
Oakes was this afternoon called to the peutloh
before Judge jenkins at Milwaukee for his re-
,novaI by the Northern Pacific Railway Com
nany He said that he had known for some
time that such move was on foot, but WCiid
prefer to make no statement Whatever Whiie
under fire. . 80, 9 49,
Mr. Oakes spent a considerable portion OF the
day in conference with a subcommittee or the
Northern Pacific employees. This committee
stated that II had been unable TO secure any
concession from General Manager kendricK' as
ne had held that only the receivers could take
any action; hence the appeal to Mr. OaKes Inc
receiver listened to the men courteOusly, ana
told them that he would reply at length 70
their request that salaries remain as now aiter
January l. at 2 o'clock tomorrow afternoon.
The Northern Pacific delegates have taken con-
siderable interest in the proceedings begun To-
day at Milwaukee In the event tnat MI
Oakes makes an adverse reply tomorrow the
men will begin some sort of action in court with
fhe view of preventing the new January schedule
from going into effect until the contest over the
receivers Is concluded