The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-21
READY FOR THE FRAY.
Northern Pacific Receivers An
swer Mr.. Ives.
THEY REVIEW THE HISTORIC CASE
Records Cited to Establish Jurisdiction
Hearing I'm the County
Courthouse.

The fight TO Gust the Northern Pacific
receivers viii open in earnest tomorrow
morning al 10 O'Clock in the rooms OF the
criminal department Of the supeTlor court,
which have been secured to accommodate
spectators. The cause VIII De neard De-
fore Judge Hanford and Judge Gilbert.
and the question 70 Be determined IS tne
jurisdiction OF the United States circuit
court for the Eastern district Of Wis
conssn. where the order appointing the
receivers originally vas made
The answer OF the receivers 10 the APP
piicafion OF Brayton Ives was flled in the
United States court late yesterday after
noon. IL contains nineteen typewriter
pages and Is accompanied By numerous
exhibits. including the printed record Of
proceedings In tho case before Judge Jen-
kins' court. The attack having been made
upon ne jurisdiction. aside from the
charge Of collision. the answer Is directed
toward f4c establishment OF the fact that
the Northern Pacific at the time OF the
appointment OF the receivers. and Tor a
long time previously, owned and con-
froiIed property Ia Judge jenkins ols-
trlct and that such jurisdiction has been
repeatedly recognized by counsel for the
railroad company.
The receivers deny that at the tirae Of
their appointment by Judge Jenkins In
the United States circuit for the Eastern
district Of Wisconsin no part OF the rail-
road or land grant OF the Northern Pa
cifc, or of the property covered by the
mortgages to foreclose which the bill was
filed We're situate within that district. On
the contrary, they allege that a part Of
the property covered by the mortgages
was at that time in the district. The
answer shows the history Of the litigation
from August IS. 1889, when J.. u. Winston.
the Farmers Loan & Trust Company and
william e. Sheldon q Co, compliments.
filed their bill IN the Wisconsin court.
Winston was a stakeholder and creditor
OF the company. Sheldon & Co. were cred
i;o~g. and the Farmers Loan * Trust
Company, a. trustee under several mort
cages executed by the defendant repre-
scented tho bondholders under the mort
CAGES In the bill complainant prayed
that the court would fully administer the
trust fund. namely. all the property Of
the railroad company In which the COM
plainants showed themselves interested,
constituting the entire railroad system.
lands and assets OF the defendant cor
poration The bin asked the court TO
marshal the assets and ascertain the re-
spective liens and pTiorities existing upon
every part of the same. and the amount
due upon the mortgages and other liens
against the property: and to enforce the
rights. liens and equities Of each and all
the preferred and common stockholders,
bondholders and creditors. Included In
the bill was a prayer that TO prevent dis
unity OF the system, the court appoint
one or more receivers. When the bin was
fled the company appeared by John +.
Harper, attorney. and James Mcknight.
counsel. and fled an answer admitting all
the allegations, including insolvency and
the necessity for the immediate appoint
nent of receivers. The defendant con-
sentinF. the court duly appointed Thomas
r. Oakes. Henry c. Payne and Henry G.
Rouse. Thereupon the receivers each filed
a bond for Zoo. qualified and entered
upon the discharge Of their duties.
After the hiing or the bin IN Milwaukee,
the same bill and the same answer were
nied in circuit courts OF the United States
for the Western district OF Wisconsin
Northern district OF Illinois, districts OF
Minnesota. OF North Dakota, OF Montana,
OF Idaho. OF Washington and OF Oregon
All these bills and answers were filed on
August II. is and II. and in each court
when the bill and answer were filed an or
Aer was made appointing Nlessrs- Cakes
Paine and Rouse receivers Of all
the property OF the company, with
the powers before stated, and each
Of the orders identical
In substance and effect with the order
made by the court In tho Eastern district
% Wisconsin. Following the appointment
OF the receivers. various other proceedings
were taken IN all the courts. which pro-
ceedincs the answer says. have been
the defendant.
The Property I'm Wisconsin.
The answer states that for more than
three years Immediately before the re-
ownership the Northern Pa -ific lad been
in possession OF and had been operating
the lines OF railroad of the Wisconsin
Central Company and the Wisconsin Cen
trail Railroad Company. constituting about
SST miles. the larger part actually lying
within the Eastern district Of Wisconsin
The lines extended from st. Paul through
Wisconsin and part OF Illinois 20 Chi
cnEo. with a branch extending 10 Ash
land. Wis. where Il formed q connection
and n continuous line with the main land
grant of tho Northcrn Pacific which pre-
viously had been built from Ashland 10
Puget Sound. These lines az railroad
We're held under lease executed Arril J
1870 90 the Northern Pacific. and run
ming sor - wears from that date. Tho
lessee had been authorized nv the board Of
directors OF the Northern naciHc and q:
the annual meeting Of stockholders. hrle
October t. 1920. over threc-nfthz az tho
stock 81 the corporation was voted 20 rati-
~ the lease. and no votes were cast
against it.
Immediately on lilo execution of the
lease. tire lines Of the Wisconsin Central
were taken secession of and operated =
Il pert 81 the Northern Pacific system.
and they continued IS a part Of tho svs-
tom fer three years prior 70 The appoint
mont OF tho receivers. In the operation
~ the lines. the Northern Pacific - aller-
ed 20 have actually acquired nGd owned
large amount e. supplies rails ma
other material which was located Cor Use
Cn the lines ip the eastern die.r{ct 81
Wisconsin. Tho Northern Pacific t,ok
Possession Of the stations, tickets OFFICES
shops and all other property or she Wis
consin Central lines used in connection
with the railroad and used in the opera-
ton % the WISCONSIN Central "A iar~a
number of cars and engines. the rronertv
az the Northern Pacific Railroad Gem
nany.
Removal or Property From Wisconsin
On their appointment the receivers en-
tered into possession and operation OF the
Wisconsin Central lines AZ part OF the
Northern Pacific system and OF all the
rolling stock connected w{th the roads
They continued in possession ard ons.rH-
tion from their appointment uatfl S<-.ter,i-
Der 81 iSss. when the rental duc IRON IN,
Northern Pacific ~ fhc Wisconsin Central
being unpaid. the latter COMPANY. eIe,te3
60 terminate Tho lease and as "a result thy,
receivers were ordered hy court IN t1~r
back the lines 20 the Wisconsin Central
Company az midnight OF that dav. Rut
the receivers hy the same order we're d.
rected 20 make an Inventory ~ al rer-
q = ~