The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-08-16
NORTHERN PACIFIC NOW.
TIE RAILROAD coMPANE CoNFEssEs
THAT 1T rs INsoLTENE

Friendly Creditors Apply for Receivers ant
the Company Aequicsces In the Proceed
inGs-fresident Cakes as One Of the Re
ceivers will Continue TO Operate the Prop
erty-Ths Other Receivers are Henry O
Payne OF Milwaukee and Henry c. Rouse
OF Cleveland, Oval Street Regards I'll,
Disaster as the Logical Result OF Henry
Wizards Financinx-Over sx50.oO0. 900
OF Securities Invoived-Moro than Ten Per
Cent. ofthe Railway Mileage orthe United
States Now In the Hands or the Courts.
Tho financial storm that has been sweeping
back and forth over the entire country caused
its most important wreck yesterday. Every
one familiar with Wall street and railway
affairs has recognized tho weakness OF tho
Northern Pacific Railroad Company in these
times OF acute business distress. and Its efforts
to Withstand tho tremendous pressure OF wide
spread panic have been watched with the
deepest and most anxious interest Tho fact
that 1t has commanded the help OF power
full friends encouraged hopes In many
quarters that the great company would
weather tho storm. But the tide OF destructive
events has proved too strong for II. and yes
terday. practically at the instance Of the man
agement three receivers for the system were
appointed by United States courts having
Its lines or In which 1t does business. In this
city tho appointments were made by Judge
Laoombe. sitting In tho United States Circuit
Court
The appointees are the President OF tho
company. ono Of its counsel at the West. and
. capitalist representing the so-called Stand
ard Oil party which has large interest in the
property. Details Of the legal proceeding are
given further on in this report Although tho
L NIr- n
Of the securities OF the company have been
selling at receivership prices for weeks. the
news produced profound impression Re-
ports that the company would be compelled to
seek the protection OF the courts have been
current since the publication last Saturday OF
tho figures OF the gross traffic receipts OF the
system for July. They showed decrease as
compared with tho Same month OF last year Of
nearly 100000. being at the rate Of over
100000 per annuIa. falling of at that
rate even for Q much less period than one year
would plainly leopard the interest charges Of
the company. This view. 1t appears was
promptly taken by the management which
had the additional information that the out
look for an immediate improvement in the
companys business is not satisfactory.
Wall street was deeply impressed by this
disaster. because 1t knows from experience
what the reconciliation OF q concern capital
lied at upward OF $3.50, 0O0.0 900 means. Aside
from tho hardships 1t entails upon thousands
Of investors. 1t opens tho way for almost end
less litigation between various interests tho
scaling down OF millions OF securities. and the
raising Of millions Of new capital to rehabi!-
itate the company financially. It means. too,
oepd Of expense which the security holders
points were not raised yesterday By the friends
Of the but they sss nsyethsIsss
BADguino security holder,
Van Another aspect Of t the matter that made
sris Is
insolvency Of the Northern Pacific Company
spears that tke Sorthern Pacihe comp co%pany
had very me neeanrIX funded its floating debt Of
was unable to save itself;
4, It is singular. and perhaps significant that
e9s ts51s snt'
Win ths .i NertSera P fdf'
hs hnd 6se ehi essse H
timely disappearapGe from the scene is not
s sd IN bns nd hs aaon hs
sssouritie;s, y upon properties that should have
time that when the so-calied "bianEet ' N mo e
gage was placed upon the property. and
obisetions assumed. It directed attsnt!on ito to
the dangerous character Of Mr.. Wizards |
ably weakened the company. 50 that It was
unable to withstand the nrst real hard weather
The receivers were appointed on the appli-
cation Of the Farm9rs' Loan and Trust Conn |
aP6pf p sh. ds1n % VII Mn sns
hs % IF f. W ths Hn9.s ssss c G Gs
appointed Thomas i. CAKES Of New York.
TePpry g Payne q Miiwau6ee Wis; and Henry
70 the petition Of the COMP ainants asking that
Rss IN asret
& action WAS
s Tasner M fScus 4 Rolston represented tho
Of %nSm a1d sSs
ri sfasSH tPRGslss Rs
receivers the complainants say,
That the Trust Company. as trustee under
chat Philips B. winston Is Reder 81 stoaE 81
oeo par ysq sS. sad th Wi, William Shell
oW1ers Of oonsolidated t per- Cent IT, mo ae
s ssss bands ssocf q par par v S1s, & 1883
sS9 s.sdto5s q tie Ni9rts;rn Pacific So%psPy
held q total Of s2!O.603 par value collateral
trust gold notes Of ssId SomDapy That
said loan.
Continuing the complaint says that pursu-
company has constructed. and now maintains
and operates, its main line OF railroand and
!, point on Lake Superior in Wisconsin near
the. city OF Ashland to Tacoma and Portland
ena, Illinois. Wiseonsin. Michigan: Minnesota.
North Dakota. Montana. Idaho. Washington,
and Oregon, the total length OF the main line |
and branches being 5.262 miles.
Tho defendant company Is also owner OF q |
large amount of stocks and bonds Of the cor |
Porations owning said branches and telegraph
Inca
branch roads varying from seven to several
hundred miles in length and states In detail
road It also mentions the ownership and
holdings Of the Northern Pacific Railroad in
The Puget Sound Steamship Company and ,
other roads and terminal companies.
According TO the complaint the Northern Pa
,ihc Railroad has been granted nearly 47.00C,- {
700 acres Of land. OF which it now mas remain .
ng 3S, 430 2S5 acres. Its capital stock is S4O,-
Inf nd 40