The Helena independent., 1893-08-18
THE ORDER SIGNED HERE.
Judge Knowles Acts on the Appoint
1nsnt of the Northern Pacific
Receivers.
What the Complaint Asking for
the Same Alleges as
Rsasone.
~zg-3--1z.
Tho Answer Admits Evorything Charged
General Manager Kcndrick's Ap.
polntmcnt Confirmed.

Judge Knowles OF tho United States
Sou I, on Wednesday, at Missonia. signed
nm order for the appointment of Thomas II.
Oakes, of New York; Henry G. Payne. of
Milwaukee; and Henry G. Rouse, of Cleve-
land. receivers of the Northern Pacific rail
road. The order il similar to that issued
BY tho United States court at New YORK,
and which will be Issued in every state
whore the NoItLen Pacific or its branch
ines extend. as we'll as in the Dominion OF
Canada. Robert b. Smith for +. B. Win
ston and tho others who asked for the re-
csivership, and W. Z, Cullon for the COM
pany, went to Missoula. where Judge
Knowles is confined to his home with Il
cold cont acted in San Francisco. They
had the judge siGn the order and returned
with it to Helena yesterday. when
il was placed on record with
Clerk OF the Court Sproule. The order
gives the receivers powsr to redeem any and
all of the securities of the company now
pledged for the loan of money. and TO bor-
row funds to comply with the receiVership
order and to pay tor current labor and sup
plies; but for no other purpose without an
order Of court. Out of any money coming
into their hands the receivers are to gay,
& Of, the enrrent expenses of administer
ing the trust and operating the road; sec
ond. all sums due other connecting or in
tstsecting lines 10 interchange of business,
track sc vice. eto, and all amounts due for
taxes and assessments; third. amounts due
smrloyes, agents and counsel for services
since Feb. /, 1888; fourth, all amounts due
%or nd sDot
used in operating the road, or due for sup
plies furnished laborers; fifth, all amonn is
due for rental of rolling stock; and sixth.
With the sanction OF the court, the amounts
necessary to protsct tho real and personal
property from sale under lease. The re-
ceivers nre to give bonds OF $50,OOO each,
and the roHd is snjolned from interfering
With the receivers appointed by the court.
Tho bill OF complaint on which the order
ID based, sets forth in detail the ropetty
owned by the road. including railroads and
D eystors making up the Northern Paeltfc
.ystem and 49, 430, 900 asres of land. The
number and amount of loans negotiated
ami the ssourities pledged Tor them. ls given
in detail, and the entire funded or secured
debt is given as S152 s13. 800 on which the
annual inter est ana Bink,ng fund amounts
70 So BAG. 76O. The contingent liabilities on
bonds OF branch lines is $40. 349 900, on
which the amount of inte est guaranteed
by the Northern Pacific is S9l3,440. The
total interest and sinking fund enal Res are
$40. 260, 200 year. The gross earnings of
the Northern Paoifo system for the fiscal
year ended June 30, 1892. were $3l, 299. 500,
exclusive Of tie sales OF .and: the operating
expenses. interest and sinking fund
amounted TO $50 465. .00S, .eavins sur lus
of 1854 SSS. out OF which S13l, ,eo2 was paid
as dividends to preferred stockholders.
For the year ended June 80. 1893, the gross
earnings were $3.50 S9o 81 an and dot me oper"s-
ing expenses, etc., $3l, 430 937, leaving a
defcit Of $64O. O66. Had the loss by oper-
stina the Seattle, Lake Shore & Eastern
and the Chicago and Northern Paolhc ter
minals been included the deficit would |
have been $972. S76.
The gross scelpts for July last were be-
Nsvsd to be 81. 139, 425 and the payments
reports show that the falling off |
is steadily increasina, due in part to She
falling Of in immigration, and IN part to
the depression in business and the 81 in
Rencv of the money market. and the COM
plant says the road is not and will not be
hxed oha Res and 10 therefore insolvent.
In May last. the complaint further states,
whom the road issued its collateral trust
ponds, it had floating indebtedness of
,ver $11, 600, 600. One of the objects in
letting up the collateral trust bonds was to
una thlS nO6tlnQ lnQeDtedneBs. by reason
# the extraordinary financial conditions
+ the country since then, and the failure
+ certain subscribers to pay their sub
cril tion. the road has not been able
0 perfect its funding plans. Be-
ides this the securities held by
ollnteral have been declining and ths
oders OF notes have been calling on the
Dad to make good its margin in seo1 tiles.
he roads resources, tine conn lalnt says,
re exhausted and it ia unable to res ,ond ,
0 the call for margins.
Tho answer to the complaint admits
verything that is claimed and consents to
he appointment of receiver.
Agent Edgar yesterday received a circular
% the effect that the appointment of Acting
ieneral Manager hend'ick had been made
permanent by the receivers. Another cir
,ular from General Manager Kendriok
'tates that all EN- ployea of the road Will re-
main with the company.