The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1894-02-04
MAKE REPLY
Why tho Northern Pacific Receivers
Should hN B, R.mlVed.
IVES STARTED THE LEASING
The granch Line Policy Was Not
inauEurated by the Recslvers.
and the Lines Leased by
Cakes Made Money.

MILWAUKEE. Feb. 3.-There were filed
to-day by the Farmers Loan and Trust
company. Sheldon & Co. =. B. Winston
anl Receivers q .kes. Payne and Rouse,
in the circuit cour, of the United States,
six separate answers 10 the Ives petition
for the removal OF tho Northern Pacific
receivers. Tho answers present exhaust
i've replies to every charge made and COM
prise more than 800 pr nicl pages. The
answers not only meet all specific
charges, hut explain and rcfutc the insiu-
Uaiions. Ii is shown that tho branch line
policy originated during the lvcs-llarris
administration, and the receivers bring
proofs 20 show tina: by rejecting the
branch line leases they have saved more
than Sl,n0,O0 per year The re-
covers have already paid S5.0l0,-
600 preferential debts and about So
10000 interest, with important economies
in operation. pakcs answers every
charge specifically, fling exhaustive docu-
ments and proofs. Ralston vigorously
scores the accuscrs and refutes every
allegation. The answer Of oIkes
specially denies that he was a partner in
or proftel by the construction of any
lines or guaranteed bonds of the same.
lie also denies that the directors proiitcd
thereby. tic shows that under hts manage
mcnt the gross earnings Increased from
ST., 10000 TO S2i,OO0.OoO until tho recent
extraordinary depression which solely
caused the bankruptcy of the company.
lie reviews the history of the purchase or
Isps nF lao ,ra,ipt.a N.tlrA.l. Iha
answer shows they were necessary for
meeting competition and controlling tho
business and protecting the territory. The
Northern Pacific directors and stock
holders unanimously adopted this policy
in ISL. readopted il in 1856 and 1859. Pur-
suant to this policy the branch roads were
constructed or acquired 10 meet particu-
lar exigencies. In each instance the sub
jcct was carefully examined, referred TO
special committees, reported upon by
various departments, To the board and all
% branches now IN operation with the ex-
ccption OF five, were commenced or au-
,horiz,d by the Ivcs-lIarris board. Tho
acquisition of the branch lines was a
necessity in railroad management and
upon the whole beneficial TO the system.
The branch lines now constructed or
acquired during the period that Oakes
was director, furnished business to tue
Northern Pacific railroad company of
more than si,OJl,o00. The Central WASH
ingion. Green RIVER K Northern, Spokane
q Palouse and Northern Pacific and Mon-
tana roads, all were constructed, or the
construction provided for, under the
Harris-lves management. On the Spu-
kane q Palouse the business last year
exceeded 100000. The net revenue paid
/ all interest on bonds issued Oh
! account of tho extension. The Green
| River 4 Northern was authorized 10y tho
Ives-Harris faction of the directors. aud
| the contract for construction was signed
by Robert Harris. Tho answer shows
that no directors were interested in the
| construction of the united railroads OF
| Washington. They cost the total amount
OF bonds issued thereon and no profit was
| maLlo IN their construction. The answer
shows that not a cent OF money was paid
| the Oregon & Transcontlncntal company
for its services IN purchasing the Seattle,
| Lake Shore q Eastern. Four directors Of
tho company were interested in The syndl-
catc which owned and controlled tho
Rocky Fork mines aud railroad. The
company purchased the stock of this com
pany and made contract with the Rocky
| Fork company for so tons OF coal daily
! for 80 years AZ - 80 per ton, with certain
rebates. For three fiscal years, ending
June - last, the company saved by viriuG
OF said contracts more than sl,OJJ,OD, or
a sum equal TO about 81 90 per day.
! As To the Northern Pacific d Manitoba
railroad, the answer shows syndicate
was organized by Willard to construct this
road, but hc had no personal interest in
il. The entire road. including tho terminal
properties at Winnipeg, Portage Ia
! Prairie and tho Brandon q Winnipeg
transfer road cost 5000, 100. and the profit
| for tie year ending June, 1889, was over
| S3J0tOl. As TO the Chicago terminals and
the Wisconsin, Central lease, the answer
shows that before u lease or any con-
tract was entered into, the value of prop
critics was thoroughly and carefully
examined by independent experts not
only representing tue company, but also
representing the bankers who expected to
make large Investments IN Chicago ter.
mlnal bouds. These experts uniformly
placed the value oi the leased properties
largely ia excess OF the value ON which
rental was paid under the leases Tho
lyes-Clews report last year placed tho
value Of the Chicago terminals at about
:3s.O0)OJO, whsle they were acquired under
lease by the Northern Pacific on rental
value of about Sls.OJQ.OJO and Oasrs had
no interest, direct or indirect, IN the ac'
qu.sitian and control OF these properties.
Latonit spring Enirles.