The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-09-12
SERIOUS CHARGES
Made Against the Receivers of
the Northern.
5RAYToN IVES is AROUSED
He Makes a Lively Correction of Mr..
CrOmwell's AllegatiOns-The
Real Question at Issue.
eRAYToN IVES is AROUSED

Brayton Ives, the president of the
Northern Pacific railroad, had blood in
his eye after he had read in the Tribune
yesterday the statement of William Nell
son Cromwell, in which the counsel of
the receivers laid claim to victory in
the decision of Judges Hanford and Gil
bert, Mr.. Ives prepared and issued a
statement, which is as follows:
1t was not my intention TO say anything
at present about Northern Pacific mat
ters but Mr. Cromwell, with his usual
reckiessness of speech, is making many
misstatements which ought to be cor
rected. The decision of the court at
Seattle is important because 1t settles the
question that the court at Milwaukee,
sitting in a district in which no part
of the Northern Pacific raiiroal was
located, ought not to be regarded as
the court of primary jurisdiction over
the entire railroad, and that the court
sitting at Seattle, in a state where a
large part of the road is located may
properly be recognized as the court of
primary jurisdiction. The decision of the
court is also important in thls--that
while holding that the court at Milwaukee
had no power to displace che mortgages
a priority to receivers certificates there
on, this jurisdlctional defect can be rem
edied by appropriate action of the courts
sitting in the districts in which the
Northern Pacific road is located. The or
ders of the courts along the line OF
the road and authorizing the issue of
receivers certificates were entered, not
at the time of their issue, as they should
have been, and as Mr.. Cromwell has said
was done, but in April last, without no
tice to the company and parties in in
terest, except in the state of North Da-
kota, and l am advised by the clerk of
the court sitting at Fargo, under a
telegram dated August q that no such
order is on record in that district.
1t is only proper to adj that have not
made any attack in my affidavit on the
certificates. What have said has been
in reply to remarks of the receivers
counsel.
This decision is also important as it
breaks up the judicial "comlty" rule,
which has stood for eighteen months as
barrier in the way of our efforts to
dissolve combination which for reck-
lessness, effrontery and improper methods
has no parallel in the history of Ameri-
can railroads.
IHe real at ISSUE IS lnlS. OIldl
the same parties who have wrecked a
railroad continue to run it for their own
benefit under the protection of the United
States court? In inaugurating this
scheme to perpetuate the wreckers in
power, Henry Willard, in July, 1898, select
ed William Nelson Cromwell as counsel
and directed him to prepare a bilr for
the appointment of Henry C. Payne, who
was associated with him in Milwaukee
street railway matters, as sole receiver.
Mr.. Cromwell, acting as Mr. Wizards
counsel, prepared the bill and other pa
pers necessary for the appointment of
Mr.. Payne as receiver, and arranged to
have the appointment made in the East
ern district of Wisconsin, district in
which no part of the Northern Pacific
road was located To this scheme
Messrs. Oakes. Colby, Hoyt and others in
terested in the Northern Pacific railroad
objected. these gentlemen insisting that
Mr.. Oakes and Mr.. Rouse be appointed
with Mr.. Payne, so that all the parties
in interest might have a representation
among said receivers. This was finally
agreed to and the three receivers ap-
pointed, thus virtually perpetuating the
power of the wreckers Of the road.
William Nelson Cromwell, Mr.. Wizards
pointed one of the counsel for the re-
ceivers and soon thereafter made general
counsel. At the time Mr.. Cromwell was
made general counsel he was counsel for
the Adams committee. These positions
o"e clearly antagonistic Mr.. Cromwell
ras appointed general counsel for the
receivers almost entirely on account Of
his connection with and influence over
the Adams committee, and as such has
been intrusted by the receivers with the
and control of all their legal
and a great part of their business mat
ters. In former investigation we de-
Veioped the fact that the receivers had
a claim for $545,OOO against Mr.. Willard.
1t could not be expected that Mr.. Crom-
well, as the general counsel for the re-
ceivers and who had been for many years
Mr.. Wizards private counsel, could or
would successfully prosecute this suit
Mr.. Cromwell, as assignee Of Decker,
Howell e. Co, made a settlement with
the Northern Pacific railroad and the
Northern Pacific e. Manitoba railroad,
in which he obtained from Mr.. Willard
and all others connected with the rail-
road what he (Mr. CromwelD stated to be
a full release Of this $5i5,OOO and of other
claims.
In addition to proving these facts at
the hearing in Seattle In October, we
expect to show that the receivers have
paid on account Of and for the benefit
of their friends in the Wisconsin Central
and Chicago and Northern Pacific rail-
road $l.122.O91O6. and that the court at
Milwaukee, through its receivers, pur-
chased with the funds Of the trust es-
tate valueless Judgment for the purpose
of imposing upon the litlgants and the
court in another and different case; that
the court, through its receivers. spent
large amount Of the trust estates funds
in the recent Montana capital fight; ana
that the receivers employed as their gem
eral counsel William Nelson Cromwell at
a retainer of $4,000 and salary Of $780,
900 a year, to take charge OF the trust
estates legal and other bsuiness when
they knew that he had had no exper-
fence in handling such business.
These are only a few Of the charges
which will be brought forward and relied
upon In October next at Seattle for the
removal Of the receivers In addition to
these facts I propose TO show that Mr..
Rouse has been yachting most Of the
summer, Mr.. Payne has been looking
after street railway matters at Milwau-
kee and junketing In Alaska and other
points with Judge jenkins. and that Mr..
Oakes has been living luxuriantly al st. |
Paul without apparently disturbing him |