Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1893-08-18
In Recovery Hands.

This extends the time to September j.
In Receivers Hands.
New YORK, Aug. l5.-Thomas f.
Cakes of New York, W. H. Payne of
Milwaukee, and Hen c. Rouse, presi
dent of the Missouri & Texas railroad,
were this afternoon appointed receivers
of the Northern Pacific railroad in the
United States court IN this city.
The Northern Pacific and Great
Northern companies have decided to
restore the freight and passenger rates
to the basis preya ling last February,
to go into effect as soon as practicable.
The other transcontinental lines are
expected to follow the example of the
companies mentioned,
Tie appointment of the receivers did
not come as a surprise to the street
Although it vas not announced until
after 3 o'clock, the brokers were pre-
pared for the news, as rumors of such
step had been plentiful all day,
CAUSES EoR TUE ACT.
Vice President Williams of the North
ern Pacific says
in consequence of the extraordinary
depression in business and the stoppage
of shipments along the line the North,
ern Pacific Railroad Company has been
forced to acquiesce in the application
for receiver. No company could long
stand sucu a severe pressure. The fall
ing of in earnings is owing to several
causes. The money stringency prevents
the marketing of crops, caltse and pro
ducts of all kinds, consequently the
road was not getting the traffic usual to
this season of the year. The failure OF
banks tied up money upon which we
depend for cash. The depression pre-
waning over the whole country IS eX-
ceptlonally severe on the young states
SO general business along our man and
branch lines is practically at stand
still. The receivership means the pre-
seryatlon Of property and the presei'a'
ito, of all interest until better times.
The roads has demonstrated III tie past
what its earning capacity really IS ana
when pr, sperous times return, the re-
venues of the company will again more
than exceed the expectations OF those
interested in the property.
The original bill was filed by the
Farmers Loan and Trust Company, ahu
other creditors and stockholders III the
district court of the United States for
Wisconsin and the appointment was
made here today. Auxiliary bills were
filed in New York, Illinois, Minnesota,
Dakota. Montana, Idaho, Washington
and Oregon, and the same persons were
appointed receivers in each sepera'e
jurisdiction ,.l
From official sources it is learned
chat the main cause for the appointment
IF a receiver is that the guarantee syn
dicate, or certain msmbers OF IT. ialleo
to make good their subscriptions aiIe8
mo that they had been misled as to the
aotual condition of the property Since
tine completion of the Manitoba ROAD 10
the Pacific coast the company has n"u
hard struggle; for instance It's earn
mos in July we're only $2,Ol9'429'
daorease for the mouth of $G98,o6p' co'L-
sared with the same month OF 1897, !
ueDrv G. Rouse, who. was appointed
ooa Of the receivers, it is understood re-
presents the Standard Oil party, when
has large interest ip the property.
The North American company las
not sacrificed its Northern Pacific hold
mos and expects to weather the storm
Cromwell, one of the counsel i0f we
- said the receiyerseip was not
i,aa 70 he failure Of the $l2oOo'oOo
collateral trust gold note plan as 'ne
en,ire amount at issue was suoscEp cd
for ONE weeks ago
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