The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-08

-. - - eo,,-. far rl.ss district October
"a TIE company rot having iiIeo any AT
swe- The cauxe pending II on s5'e eh 70
.orecioss three general MORTGAGES OF ane
Northern Pacific company. ana sfse 1s'Sri,
<~x vyero a.,.soisted. not as OF the enosss o.
~, rho motion OF the court, bit % ancii-
larry 20 tire appofrtment that had nefn
,,adc in the eastern district Of WISCONSIN
AIR Petit continued:
Denies Judge jenkins Jurisdiction.
..ssoVv. ~ the court please. ACCORDING 20
the allegations OF the petition OK the
Northern Pacific Railroad company.
which has never. so far as tnfs ftsoIH
shows. appeared or been represented IN
this district ia this cause the ctf-
s,,it corr, OF the United States for the
eastern district Of Wisconsin had al the
sfrna Of the aDroinsrnent Of these receivers
no Jurisdiction whatever over any OF
the property of the Northern paciifc haii-
road Company. An examination or the
rnap-and that Is part OF the tudIcfal
1rnowledge OF the court-shows that no
mart OF tho railroad of the Northern Pa
rife Railroad Company. and no part or ITS
land grant was ever in the eastern dis
friet of Wisconsin: and. so far as we are
advised, no part. certainly. OF the proper
~ OF permanent or substantial nature
was ever within that district. That fact
was either waived. or certainly not pre-
scented 20 this court: and therefore the Pc
fitioner holds that this court should ap-
T,olnf it's own receivers IL having turtsdic-
ton over q large part of the property In
question.
gage. 10 sell that property: and in the
preservation Of this property pending the
forecI0sure and its disposition and sale.
proccedings should be had in court
winch has the custody and eontro, over
the property which IL the subject matter
of the dispute.
"The petition further AYERS there are a
NUM- her OF cauges Of complaint against the
conduct of the receivers since they have
been In which are hardly necessary TO go
into because, OF course, the first question
is one of juTfsdlction-as to whether this
court wos bound by the rule OF comfy
which the courts have adopted. ~ IL ey-
tended TO this case at afi-whether ~ was
bound by that in the appointment OF the
receivers And esk that the court should
make an order In the following Ian
guage.'
Mr. Petit then read the proposed or
der. directing the receivers 20 appear and
show cause why the order appointing
them ghould not nc set aside.
Mir. Petit then continued:
when yodr honor fixes the time. i
have arranged to telegraph. 80 that the
gentlemen can have copies OF these pa
pers ii Ncw York on application. so that
your honor can feel that whatever no.
tee your honor thinks they ought 20
have can run from today. They can
have all the information that anybody
can have at once"
Tho Court: HAS this petition been
served on any OF the parties7"
Mr.. Petit: mo. 1t is simply an order
70 show cause: AMI IL Is not customary,
at least In the circuit where | reside,
20 servo a notice OF application of that
f1d he E~
notice Is served. ] cannot imagine any
rule OF practice that requires 1t, and
thereforo served no notice"
Friday set for Hearing.
The Court: Not being appraised last
evening that this application would lie
presented today. the court was adjourn
ed on yesterday until Friday morning.
have been appraised by local counsel for
the receivers and for the Farmers Loan
a. Trust company that they are quite anx-
ioiis TO have an opportunity TO have their
say I'm regard tn the form of the order
Now the only order I would make this
morning would he as In chambers, an
order permitting this petition TO he filed:
and I will consider IL on Friday morn
ing In this court room. In the meantime
local counsel can have an opportunity 10
see the papers you have filed. and i VIII
give them "A chance to be heard on Fri
day morning Az To the form of order TO
be entered. I Will say that In matters
similar to this which have occurred here
tofore In this Jurisdiction. in regard to
complaints against the receivers in the
management of the business. the form
OF order that / have made has been an
order directing them to answer tho peti-
tion-answer II by demurrer or piea-an-
swer or affidavit. In whatever way viii
meet their Views az to what they want
10 have considered by the court. ] do
not know Mt this time what prelimIn-
aries may he necessary In order 20 pre-
sent such issues as each side wishes to
have considered: whether the case has
got TO 90 through all the motions and
demurrers and pleas that may he inter
posed before we get an issue of fact, IL
sn issue OF fact can arise. or whether
II will he met squareiy in the beginning
and submitted on the questions Of law.
or whether the proofs shall he offered
promptly so that prompt hearing can
be had on the merits OF the controversy.
whenever the case can he presented for
hearing and consideration on the merits
] consider that the questions involved are
Of sufficient gravity TO make IL desirable
that one circuit Judge should he present
Rt tho hearing Judge Gilbert ives IN
Portland. and he has intimated TO me
that III the matter can be brought on for
hearing during this month he can come
here. IL any other time should be found
more convenient. or necessary 10 have a
different time. then II would have 20 he
set down for such time as will enable
the parties to have n fair opportunity
90 present their case. and II would he
my wish 10 have one or the other Of
tho four Judges OF this court sitting hero
when the case comes on 70 he heard. II
10 Is practicable. | direct the clerk this
morning TO enter simple order grant
ing leave TO file this petition Ths matt n
viii come up again Friday morning.
Secrets OF the Hui Deal.
After Adjournment, OF court Mr.. Petit
was asked what had caused the company
10 take such n radical step. and replied:
Immediately after the Insolvency OF
the company and the appointment of the
receivers. Mr.. Henry Willard. who was
New York agent OF the Deutsehe bank,
resigned In favor OF Mr. Edward II
Adams. Of New York. with whom his re-
iations. business and personal. were very
sntimate. The neutsche hank represents
number OF German hondhoiGers Of the
Northern Pacific Railroad Company aud
az M. Wizards suggestion n reorCanixa-
ton COMMITTEES. 80 called, was formed.
with Mr.. Adams, as chairman. 90 represent
tho German interests. They Immediately
invited tho cooperation % the American
hondholders. and obtained tho co-opera-
tion OF quito number. hut so far have
been unable 10 obtain c majority.
'"rhc receivers. who were named 10 tbs,
court for appointment by the old Slrec-
tory. and which had ALWAYS been rcnre-
sentative OF the German interests have
been. In fact. controlled by Mr.. Adams. as
chairman 81 the reorEa uization commit
tee. They have appointed as their ne
counting otf'ccr an accountant named by
him; they have furnished FUN information
IN respect 70 the conditions and fhs bt,sg
~ h.s - hs.fA -