New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-16

THOMAS f. OAkES.
highest standing experience in large corporation ar
fairs formerly and for years counsel for
the Chicago Milwaukee and 81 Paul Railway, and
Henry c. Rouse the chairman and president OF tie
Missouri. Kansas and Texas Railroad. who has shown
strong grasp Of affairs as a railroad manager. With
Itch receivers all parties feel that the AFFAIRS
Of the Northern Pacific will BE- conducted ably and
honestly and for their best interests The road has
demonstrated IN past what It's earning capacity really
is and when prosperous times the revenues Of
the company will again than exceed the cxpcta'
tons OF those interested in the property.
The original bill filed by the Farmers Loan and
Trust Company creditors and stockholders In
the Circuit United for Wisconsin and the
appointment there to-day. Ancary bills were died
in Ncw.York Illinois, Minnesota Dakota Montana. Idaho
Washington and the same persons appointed
receivers in each separate Jurisdiction.
WHAT THE COUNSEL OF THE RECEIVERS SAID.
Nessrs Sullivan & Cromwell. OF counsel for
Mc.srs Cakes Payne and Rouse, the newly APP
pointcd receivers Of the Northern Pacific Railroad
Comrany were asked TO verify deny the r.
port Of reccivership Of the Northern Pacific.
Mr. Cromwell and Mr.. Curtis, Of that firm. stated
that it being now a matter Of record, II was
proper TO say that receivers Of the Northern
Pacific Railway CompaHy had been appointed BY
Judcc Jenkins of In. Circuit Court of the
United States at Milwaukee. the primary re-
ownership and by judge l.l,"nl". "i tins as
trct and the several judges of tho various other
districts through NHfN lU' ltub u i"i'-'
anrillary receivers. The receivers 50 appointed
were Thomas T. Cakes. who Is IN" president oil
the Northern Pacific Railroad Company; ii 'nrv
& PAYNE Of Milwaukee. 4 distinguished CIT
zen of Wisconsin. who was formerly representa-
tive Of the Chicago. Milwaukee and 81 Paul Rall-
road Company. president OF several "ther cor
porations and repr' s,1'I'iN" ma "i in,
west and Henry {. Rouse. "l clever ma N"'
J.. president of the Missouri, Kansas aiiI lrA&s
Rliirold Company.
Mr. Cromwell further stated that the suit IN
which receivers w.rc appointed was mad" AZ IN"
instance Of creditor. Stockholders and hordholi"rN
and the trustee of the mortgage. the fhrm't'
Loan and Tiust Company that III" company ~
elf recognizing the wisdom of ia" proceeding
and the necessity Of preserving IN" unity "l wv
property ard to continue IT, operation for p"mi'
convenience and also recognizing the inevitable.
had not opposed the Application, but had III TINS
way RECOGNIZED the advantage Of securing IN"
protection Of the Court from the possible assaults
81 creditor, and the consequent dsmcmherm"i.i
81 il, railway system. The proceeding, lie also
said. a. thus begun was a conservative one av-
ing for its aim the best interests Of creditors ami
stockholders and the conservation of the "nor-
mans interests involved The receivers named
were representative AMI would satisfy III" various
classes Of security holders. Tie receivers were
now in full possession of the property, and were
continuing its operation.
WARNINGS OF DANGER.
AZ 70 the necessity for taking this action, II
wa, exclaimed by Northern Pacific officials that III"
continued decrease in earnings CAV" warning OF
rho danger of continuing the present fixed charges.
while the prevailing business distress gave no
bonc for a recovery Of the old basis Of thc earn
ines during the present year. Coupled with thus
tho extraordinary financial strngcncv made the
L.. nd rho furnishing Of additional
cnloteral difficult and perhaps impossible mat
for and only depleted the treasury OF the company
,yithout avoiding the inevitable results Inc
,u,minency of depletion on September ], conpif'
with fine desire Of the officers TO save the e\is'-
ing assets from sacrifice, inpciled them 10
,ecooujton at this time Of III" wisdom "i ln'i'ih'
intervention and protection. Tho security holders
had now the assurance that no further ihdcp'''i-
moss could De created save with IA" pei
mission OF the Court, and with the poird oI re-
ceiyers as thus appointed they considered that .hc
persons in interest had GOOD DaeIS lor Ic,uP''',
ZION and full assurance oi hnF>t anu 'W''"'
mana cement of ia" property III the mean Uh''
II vas understood that already "Ioits lor icorsal-
;1,,ion were under serious consideration.
81, Cromwcll wa, asked whether ne rr"riNT-
,; ,,,s dine 10 the failure Of the lively" nililon
rojotcrnl trust gold note plan OF the Nor'n''!.
Pacific Railroad ompany lie answered WA, "
was not The entire anoHn, o, vi" , ,s.ue co and
thrcc calls 10 the subscribers have been ina,c ~
n"nootino 60 per cent This amount had just
H., nnid in and the remaining call of 40 per
cent had Just been made for AgsuSt -. ~. n .',S
,,Iolc . 900 600. Mr.. Cromwell sdi1 that he NN1
"'; ,' 49, ,h,t ~ least 80 80 per cent hau
already been Paid the calls were mad ih"rr
wr,e always some person, on lar@r snh-rp'ifTTh s
rI;"nnt for a few days few weeks. la"
.ti ,ru.t was not affected by the r"ceiNci-
e,in ,hc security of the trust already being IN
the hands Of the Farmers Loan ana lrst o " nmo
n'n,, az trustee There wore ab"nt 9N'"'''"''
p ,rrst notes issued and the trustees held me
OF S,ea" er' proportion Of the securities against the
same being considered ample security Tor the ho'es
that were issued.