New-York tribune., 1895-09-25

DECISION IN THE STATE OF WASHING
ToN-REASoNs SUBMITTED.
Thomas F. Oakes Henry c. Payne and Henry
G Rouse. who were appointed on August 10. 1898.
receivers OF the Northern Pacific Railroad Com
nanv by Judge jenkins. of the Circuit, Court for
the Eastern District OF Wisconsin, in a suit which
was begun against the company by p b. Winston
the Farmers Loan and Trust Company and
william c. Sheldon & Co. have submitted their
designations to Judge Jenkins in Milwaukee, and
he has directed all parties concerned to appear
before him next Friday morning and to submit
,rggestions respecting the appointment of
cessors.
The receivers give their reasons for resignng
IN a long statement. When they were appointed
they gave a bond Of $500 900 each. which they de-
uvered to the court by whicn they were made
receivers Of the company. Their resignation is
d,e 10 the decision OF Judge Hanford, OF the Dis
,rlct Court at Seattle. Wash. lon September l
last when he concurred fully in the decision or
Circuit Judge Gilbert. of Portland. in the case
~ the Northern Pacific Railroad Company
against Messrs Oales, Rouse and Payne in which
I, was held that Judge Jenkins. In the Circuit
Court Of the Eastern District of Wisconsin, was
not the court of primary jurisdiction and that
no had no authority under the law to name re-
ceivers, not having jurisdiction over Northern
Pacific property
ORDERED TO APPEAR AT SEATTLE.
Judge Hanford ordered the receivers to appear
IN the Federal Court at Seattle and answer
charges made against them in an affidavit fled
recently by President Brayton Ives. OF the North
ern Pacific Railroad Company.
rudge Hanford also held that the S5,000,OOo GER
,iScates issued by the receivers. with the consent
Ind valid
liens against the Northern Pacific Railroad un-
less confirmed by the courts OF jurisdiction. De-
cause he believed the Circuit Court for the East
ern District OF Wisconsin had no jurisdiction -
aDpont the receivers and to take into Its posses
sion property of the railroad company that was
not within It's territory. and TO remove the same
Al the time Of the filing OF certificates Tor the re-
moyal Of the receivers Judge Hanford ADDED
there was in that district personal property
of the company held in receivership, and there
fore the court was powerless to make any order
which affected the management or any property
OF the company $3.50
In view Of these facts Judge Hanford ordered
tho receivers to give a bond in his co>irt, and
paced the management Of the Northern Paclhc
property under his direction.
THE RECEIVERS STATEMENT.
The receivers statement for resigning Is in
part as follows:
Your receivers manifesty cannot administer sad SAID
Or iS 10 Tn If 70 subject to the orders and in
structions TO the general administration IRA Oh aU,m ,
is an entiretv and the franchise under which the
railroad is operated is ndivlsible. 1t is manifest
sht ssve your or their bondsmen submit their
general OF the rust no tne ABIDE
nor ask our sureties 10 abide the dangers
of the difference Of opinion between courts eaes
II the receivership In the general admins
in view OF the immensely Of the sums involved
Your receivers are not willing under the CIR
cumstances. to file an additional bond In such
ar their T' sureiies in position to endanger their
orabic court to reject or pass upon their accounts
in the general administration of said trust .
only In the exercise they understand 1t. of
ancllary jurisdiction by the several courts, owe to
conflict We deem 1t for the best interests Of the
estate that we should promptly resign our
as may recognize its primary jurisdiction TO appoint
new receivers who will duty. technically or
jurisdiction. and who will, therefore. be able to
deal with separate receivershps portions Of the
line, should such unfortunately be created, With
embarrassment of alleged contumacy.
II is self-evident that the vast system or me
with its main line beginning at Ashland WIS, and
more than twenty-five branch lines. a system OF
over FIVE thousand miles with a land grant or over
100000 acres only be administered, as ii has
been done. as unit and single system: through
separated, moreover, by two-thirds OF the conti-
nent
WHAT MR.. IVES SAID.
Tribune reporter tried to see Brayton Ives,
president Of the Northern Pacific Company. last
night but Mr. Ives could not be found. He has
been engaged in a long fight with the receivers,
and in an interview with him. printed in Inc
Tribune on September D. after Judge Hanfords
decision was made known. and after Wlllan Mel
son Cromwell the receivers counsel. had declared
that the decision was really victory for them,
he made some extremely severe comments upon
Messrs Oakes. Payne and Rouse among the
things he said were
The real question at issue is this Shall the same
parties who have wrecked railroad continue 10
run II for their own benefit under the protection
Of 8 United States court? In inaugurdtlhg inns
scheme perpetuate the wreckers IN power EehIy
Willard. in July 1893 selected william Nelson CfoHi,
well counsel. and directed MN 70 prepare oli
FOR the appointment of Henry c. Payne, who was
associated with him in Milwaukee street rau"ay
matters as sole receiver. Mr. CromWell, acllnS as
Mr. Wizards counsel, prepared the Dill ana other
papers necessary for the appointment OF MI fd!lc
made IN the Eastern District OF Wisconsin a as
trict in which part OF the northern racine r0dd
was located To this scheme Messrs. Oakes, Colby.
Hoyt and others interested in the Northern Paclhc
Railroad objected, these gentlemen insisting that
Mr.. Oakes and Mr. Rouse be appointed with MI.
Payne. that all the parties in interest might
have a representation among said receivers. ms
finally agreed TO and the three receivers APP
pointed thus virtually perpetuate the power OF the
wreckers OF the road.
dispatch from Milwaukee last night SAID that
NIr PAYNE, one Of the receivers, VIII leave uere
today for New-York and Philadelphia To con-
suit specialists about his health. He has been
advised by physicians 10 seek absolute rest, ana
may sail for Europe This trip. however,
depends upon what he learns from specialists re-
garding his actual condition.