St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-10-09
SIS, 100000 MAY BE OFFERED.
Bids Made Returnable to
the Court on Oc-
tober %.
RECEIVER CAKES REMOVAL.
Now Being Argued--Old Ru-
NOR Of Missing Bonds =
Revived.

CHICAGO, Oct. S.-Judge Jenkins, of
the United States court, presided today
in the continued nearing of the applaca-
ton of the NorthernPacific receivers1or
leave to issue 5000. 600 of receivers
certificates. Henry Payne, one of 1.-THE
receivers. was present with ex-senator
Spooner. of Wisconsin. w. H. Cordezo,
Of New York. representing the second
mortgage bondholders. opposed the is
sue, claiming that it was unjust to the
second and third mortgage bondholders.
Mr.. Cromwell. for the receivers, said
the receivers have liabilities; aggregat-
ing S6,000,000 to meet within
the next few months and the
assets available do not excred
, s+.OOO.OOO. At least sl.64O.OOO is due
now and must be paid. The honor of
the court which is in control of the road
must be maintained by meeting the
liabilities as they fall due. The, at.
torney said that while the receivers had
i petitiOned for s5.00O.O0O they could, if
{ necessary, get along with less. but they
must have at least 81. 800. 900 to meet
pressing debts and carry OIL the bust
| ness of the road. He said the receivers
| would be willing to have the order for
| the certificates drawn in such way as
| to meet the objections of the bondhold-
ers. The certificates would be secured
! by Stocks and other securities which
would be deposited, and the receivers
! would be willing 10 have the Or
der so drawn that no move would
be made by them with refer
ence to the certificates without an
| order of the court, obtained after
sufficient notice to the parties inter-
| ested.
Mr.. Petit followed with an argument
in opposition to the certificates. LII
referring to the securities to be put up
by the receivers he said Northern Pa
cific securities were like Northern Pa
cltic memories, considerably below par.
The opposition of the bondholders
and the company to the certificates is
Is proposed to Issue and dispose OF
them. The argument was concluded in
the afternoon, and the court
Decided in Favor
of the receivers. Judge jenkins said
in rendering his decision, that the feal
of the bOndholders that by the issuing
| Va lSCciSCio u Ilcu WOulu De
created upon the property which would
prejudice their mortgages, was to 6
great extent imaginary. The debts
which the receivers want to meet are ir
themselves liens prior to the mortgages
The court granted the application fol
leave to issue certificates to the amount
of $1,000. 900. and ordered the receiver:
to report 10 the court OH Oct. % the bid.
which shall have been received tUl
them. and the rate of interest offered
The question of the certificates havine
been disposed of. the court took up tht
report of the master in cliancery on tn,
application for the removal of rhoma.
; f. Cakes as receiver. The report. which
was submitted to the court at MIlwau
kee some weeks ago, exoDerates Oake;
from the charges of illegal practices II
the manipulation of the Northern Pa
| cific property. and the company ant
bOndhOlders filed motion rejecting it
Judge Jenkins said he would deVot,
| the evenings of this week to the argu
ment on the motion, the hearing to talk,
place at the Lexington hotel. The c0ur
adjourned to meet at the hotel tonight