The herald., 1895-08-08

hands from the operation OF the railroad.
current expenses, etc., such amounts as
might be necessary TOR the protection of
the road. They were not to Use any
money otherwise without the consent Of
the court. Ives alleges that receivers
have deposited moneys received by them
in banks other than those authorized by
the court, and have applied the Same to
the payment OF debts against the com
pany, other than those contem plated by
me order, and that the receivers have
failed to make any accounting. The re-
ceivers have misapplied large sums OF
money received BY them from the sales of
public lands and other property Of the
Northern Pacific company, and from the
operation of the road. by appropriating
the same to the payment of debts not en-
titled to te paid in preference to the in
terest and principal due under the mort
cages. The affidavit names particularly
the case OF the Wisconsin Central COM
rany and the Wisconsin Centra' Railroad
company, and alleges in that single trans
action the receivers paid out more than
$500, 600, when, in fact, the lease involved
was not binding upon the Northern Pa
chic. nor were the claims entitled to
preference. The receivers. it is alleged,
have nnlawfully expended in Montana
and Oregon money coming into their
possession, for purposes entirely unneces-
sarv. The petition goes into the details
accompanying the transactions of Henry
Willard with the Northern Pacific and
charges after he had caused the COM
pany's Insolvency through reckless meth
ods. he went into court and secured the
appointment OF receivers who would
stand by him. It is alleged that notwith-
standing the tact that the receivers have
been instructed by the courts of the east
to sue Henry Willard, Charles l.. Colby
and Colgate Hoyt for many thousands of
dollars, which they owe the Northern Pa.
citic, no legal steps of any nature have
teen taken against the three. Notwith-
standing the existence Of claims against
Willard the receivers nave, Ives alleges,
paid him $3.50. 600 on promissoiy notes
which Willard held against the company.
while the money should have been applied
to the debt of Willard. The receivers have
also, it is said, sold valuable lands in this
state without consulting the court. and
that they have made traffic arrangements
without first applying to the court. 1t is
claimed that in October. 1893, the reor-
ganization committee was formed. Henry
Willard and Edward d. Adams controlled
it. In the conduct of the business OF the
trust estate the receivers have, it is al
legged, and do constantly and haoitually,
consult with Adams and follow whatever
limo OF policy he directs and dictates. and
at his instance have removed officers of
the company and appointed others named
by him. 1t is claimed that receivers re-
port all Of their doings to Adams, but
give no information whatever to the COM
mittees of the second or third mortgage
bondbolders. or to the officers OF the cor
poration, except by specific answers to
specific inquiries. In obudience to the
prohibition OF Adams tine receivers have,
It is alleged. no personal intercourse with
the bondholders' committee. and officers
of the company or their respective coun-
sci. in respect to the management of the
trust estate or the transactions of the re-
ceivers,