The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-09-22
President Brayt0n ives Asks
Stockholders for Proxies.
BUSINESS OUTLOOK HOPEFUL.
Suits for Restitution 10 Be Begun
Against ex-Direetors-
Wizards "CAreer Of Raiaeus Manage
mens" Held EesponsibEe for the
wreekin. Of the Company. and the
Owners OF the Road Warned

SEw YoEK, Sept. I-President Brayton
Ives today issued circular 10 the stock
holders of the Northern Pacific Railroad
Company, asking Tor proxies for the an
nual election, revisxing briefly the work
of the present directors and setting forth
the present outlook for the road. speak
ing of the masters report on the petition
for the removal of Receiver oakes, he
takes issue with the Bindings OF fact. and
says:
1T is confidently expected By yonr
board that suits for restitution wtli be
ordered by the court and that much
larger sums than those found and reached
by the master as having been made in the
transactions named sllI ultimately be re-
covered from some of those who have
hitherto betrayed your interests.
THE work 10 which ali interested in
the securities of the company are now
looking is that of reorganization. Hitherto
there has been little encouragement 20
make serious efforts IN this direction, ow-
ing TO the enormous decrease in earnings.
This was not due entirely TO the
prevailing business depression. Serious
washouis made through travel impossible
for great part OF June, aud the strike
practically closed the road 70. the first
half OF July. In August. however, mat
ters changed, and earnings for the month
showed an increase of siss. .46o over
August. ls93 Thus far THIS month
the improvement has been in the
same ratio, and there is reason to hope
IL may eantiBue. Nevertheless, the serious
decrease of elEnings during the year has
affected materially, and for the worse, the
position of stockholders. Although il 10
probable that every class Of bonds may be
called on TO make concession, more or
less, according TO their priority,
stockholders can assume that they
Will have to bear proportionats
burdens Ia order 10 preserve their hold
ings. There is no doubt, however, that a
plan of reorganization can and will be
proposed which will give them an equal
consideration for any sacrifices and con-
tributions they may be asked TO make
But they must understand that none of the
committees thus far formed is working in
their interests, while one of them-that
which is known IS the adams committee
lis ayosed!y and aggressiveiy hostile TO
them.
There is one phase of the present strug-
gle which is so grotesaue in ITS injustice
and consistency that ii should be called
especially TO the attention OF the stock
holders. The Adams committee. under
date of July u, 1894. made the
following extraordinary public an
nouneement: we agree with the
March 80, 1894 in Berlin and Frankfort,
the statement that the present situation of
the Northern Pacific railroad has been
brought abou. by the mismanagement OF
the shareholders, the and bondhoiders will
have to take the protection OF
their interests in their hands them
selves II is manifest that the stock
and not the bonds have east the vote
eiecting the various boards of this COM
pany since its organization. as is usual in
all companies. but IL Is notorious, and 10
none better known than the German bond
holders of all classes. that Mr.. Wizards
main reliance for support and influence
was upon foreign connections, through
which he was able TO place vast
amounts of securities and manipulate
enormous sums. Mr.. Willard rs their
representative occupied 8 commanding po-
sition in the conpany's councils. which
enabled him TO control the elections prior
TO iss4. when the company's collapse and
his failure caused his retirement for sew
eFAl wears. In fSs7 he returned TO New
York again as the representative OF the
Deutsche bank. gradually secured the
control of our property and began a Sec
opd career OF ruinous management, for
which his former connections now repu-
dlate him. We do not impugn the mo-
tives OF the foreign bondhoiders and their
principles, but they have twice made seri-
GUS NtAHutBS III tAesT support OF tne otl
Northern Pacific management and in
stead of their hostility vour board
considers itself worthy of their active sup
port. The indeiensi bic accusation thas II
Is your fault, and that you must therefore
share the burden OF their changed position
toward Mr. Willard and trust 10 their se-
lectIons in this country from the ranks of
the old management 10 rehabilitate your
property. seems not only especially unjust
10 the stockholders. bat against the best
interests o. an early reorganization, " hici
can lie brought about only through har-
mony aud united action. aud which the
j directors have sought in vain thus far 10
effect. That there may be no mis-
understanding as 10 the attitude of
your directors, for the future, So
sell es in the past, IL should be
known that they are. as they have been al
al times. ready and anxious to Cooperate
with all, whether boudholders or stock
holders, whose object has been or may be,
10 promote the welfare of the entire prop
egty. BRAyroS IyEs, President