The record-union., 1893-08-16
THE NORTHERN PACIFIC.
The Road Placed in the Hands of Re-
ceiverS.

New YORK, Aug. 15.-Thomas F.
Oakes of New York, II. w. Payne of
Milwaukee and Henry Grouse, President
OF the Missouri, Kansas and Texas Rail
road Company, were this afternoon ap-
pointed receivers of the Northern Pacific
Railroad in the United States Court in
this city.
The Northern Pacific and Great North
ern companies decided to restore freight
and passenger rates to the basis prevail
ing last February, to go into effect as soon
as practicable. Other transcontinental
lines are expected to follow the example
OF the two companies mentioned These
receivers are the same as those appointed
in Wisconsin.
They gave bond in $500, 900 in the United
States Court there, and are ordered to
give bond for $50, 900 here. The applica-
ton was made with the consent of the
railroad company. Judge Lacombe ap-
pointed the receivers on a motion of the
Farmers Loan and Trust Company and
Phillip d. Winston and William c. Shell
don, George r. Sheldon, William L.
Prentice and William G. Sheldon & Co.
The receivership embraces the Northern
Pacific Railroad and all railroads owned.
leased or controlled by said corporation.
Fice-President Williams of the
Northern Pacific says: I'm consequence
of the extraordinary depression in busi-
ness and the stoppage of shipments along
the line of the Northern Pacific Railroad
The company has been forced to acquiesce
in the application of a receiver. No COM
pany could long stand such a severe pres
sure. The falling off in earnings is owing
to several causes. The money stringencv
prevented the marketing of crops, cattle
and produce of all kinds, consequently
the road was not getting the traffic usual
at this season Of the year. The failure Of
banks tied up money upon which we de-
pended for cash. The depression pre-
vailing over the whole country is ex-
ceptionally severe in the younger States.
so general business along our main and
branch lines is practically at a standstill.
The receivership means the preservation
OF property and conservation of all
interests until better times. The road has
demonstrated in the past what its earning
capacity really is, and when prosperous
times return the revenues of the comDany
will again more than exceed the expecta-
tions of those interested in the property.n
The original bill was filed by the Farm
ers' Loan and Trust Company and other
creditors and stockholders in the District
Court of the United States for Wisconsin.
and the appointment made there to-day.
Ancillary bills were filed in New York.
Illinois, Minnesota. Dakota, Montana.
Idaho, Washington and Oregon, and the
same persons appointed receivers in each
separate jurisdiction.
From official sources it is learned that
the main cause for the appointment of re-
ceivers is a guarantee that the syndicate
or certain members of it, failed to make
good their subscriptions, alleging that
they Ind been misled as to the actual con-
dition of the property. Since the com
pIetion of the Manitoba road to the Pa
cific Coast the company has had hard
struggle. For instance, its earnings in
July were only S2.0I9, ,425, a decrease for
the month Of S67S, $3.50, compared with the
same month in 1892.