The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-11-22

vas incumbent rpon the rscesvers 10 invss-
ttFste sil Of the contracts which they hsd
with the yarious railroad compsnies, 70
sscertsin whsfhsr the sans were pr9nta9.e
or . b1ndsn upon tbs trustee In tns
Northern Pacific system there are twenty
eight branch line roads. al Operated
By the Sorfhera Psczfe Rsilros6 Com
pany. These branch lines we're organ
issd - separate corporations, Tor me
reason that tbs chartsr Of the
Northern Pacific company wss mos broad
enough 20 psrnit IL 20 construcs and OPP
crate hranch lines in territory tributary TO
the main line, 20 IL became necessary, IN
order 20 have feeders for the main iins. 70
organise separate companies for this pur-
poss. That 10 how 10 came about that al
Of these branch iinss wsrs separats cor
porstions, although shs money for tnsar
srn Pacific company. The Northern Ps-
clio company then entered Into contracts.
or leases. With these various branch lines,
which provided that the main line. or
the Northern Pacific company, should
guarantee the interest upon the bonded
debt Of the several branch lines.
.9.ts addition ao.a :. p'yss ~ ss'is soua9
In practical operation, that many Of these
lines, In fact most Of them, did not earn
money enough 20 pay this interest. and in
many cssss not enough 20 pay operating
expsnssa Therefore. the main line re-
ceivsrs found it 70 % their duty 20 cancel
these contracts and leases. This. Of
eourse. Jeff the branch lines IN practically
. bankrupt condition. - there Was no
hops thas they could earn money enough
10 pay the interest on their bonds, and -
they owned no rolling stock there was no
alternative but to throw them into the
hands of separate receiver This action.
If continued through 10 the end, threat
ened the integrity Of the Northern Pacific
system - . whole. In other words. there
Was great danger that some OF these roads
would become permanently aiisnated from
the Northern Pacific system.
sIt has now been one year SINCE these
branch line receivers were appointed, and
during that time the main line receivers
have been able TO determine about the
earning capacity OF The several branch
lines. As TO what course 70 pursue 10 re-
store the branches TO the control Of the
main line We have given great thought
and attention. In conjunction with the
trustee, the Farmers Loan and Trust
Company. this general plan was finally
decided upon: To dismiss the suits where
BY the branch line receivers were APP
pointed. and to allow tia trustee to enter
into possession Of the branch iinea Stimuli
taneously with this, the trust company
entered into leases with the main line re-
eeivers for the use and occupation Of the
several lines. The action Of Judge Han
ford today consummates this plan. pre-
vious orders of the courts in the sew
eral Jurisdictions in Minnesota,
Manitoba. North Dakota, Montana
and Idaho, having been obtained,
20 that we have finally entered again into
the possession OF all OF these railroads and
the system is once moro q unit l think
that this result is OF great interest and adj
~ Al.
which the Northern Pacific traverses.
'0f course. in connection with this trip
we have made . very thorough inspection
of the road, visited all of the larger cities
on the line, carefully inquired into the re-
sources and prospects, of the country,
condisions::of business, etc.
An IRA OF PnosPKRIrx BEGUN.
'Ths business Of the road commenced
10 improve about August ! last For
year previous to that time there had been
. continuous falling on In receipts, but
since that date there has been gradual
increase. equal to about 20 per cent OF the
previous decline. and We oil feel very
much encouraged to believe that the
country through which the Northern
Pacific extends 10 on the up grade toward
prosperity. In fact, there Is evidence on
all sides that this In the case. In Mon
tana there IL . psrcsptibls activity in
explorations heretofore closed down hav-
ing been opened and work renewed. And
all through We find . much more hopeful
feeling prevailing.
"Tn the Palouss valley and the wheat
growing regions there has been during the
last two weeks percsptible increase in the
prices Of csreals, and q better feeling gen.
orally. Another incident worthy of men
ton In that there Is an indisputabis trend
Of settlers to the farming lands along the
line Of the road. and there Is q continuous
and Increasing inquiry. This We consider
= very hopeful sign.
PLANS OF REORGANIZATION.
80 far there Is no general plan for re-
organization under consideration. Before
any such plan can be matured the road
must have at least one year of business
under approximately normal conditions.
so as 10 show the various security holders
some return upon which they would be
willing to base . reorganization scheme.
The earnings for the year ending
June 50 were 30 unsatisfactory that no
reorganization of the company can be se-
cured based on them. Besides, such a
conflict has arisen between the various
classes Of security holders that IL has been
impossible TO arrive at any understanding,
and no reorganization il feasible until
there shall be more harmony between
these various classes of property holders.
Consequently. do not look for q resump-
sion OF the control Of the company by the
stockholders or bondholdcrs for q consid-
cradle period Of time. at least no. before
lS9a
THE GOOD rINx 10 COMING.
''our whole party has been very greatly
impressed With the resources of the state
of Washington. With the natural advan-
tages which obtain here there can but be
. great future in store for the state. /
think no one can overstats the results that
will be obtained in the future through the
irrigation of the arid lands of the state.
10 10 not too much TO cay that the largest
aud most diversified crors known TO the
civilized world can be obtained from lands
in this state. The time will come when
this state will be one of the greatest and
richest and most densely populated re-
gions in the United States
THE present reaction from boom times
IL but natural snd will inure to the inter-
ests OF the state. however hard the burden
may be to carry at the present time.
. The large floating population incident
20 the construction Of railroads aud other
business developments will give way 70
people who desire TO make the state their
permanent hons. and you will all be
greatly benefited BY the change"