St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-08-25

the president of the Northern Pa
cific company is endeavoring to |
maintain at Seattle, that Judge Jen- |
kins had no jurisdiction over the |
property of the company in appoint |
ing the receivers, it is interesting |
to note that in 1875 George w. Cass |
was appointed receiver of the !
Northern Pacific company by a Unit !
ed States circuit court in the state
of New York, and served in that ca
pacity without question until the |
company was reorganized.
So much has been said recently re-
garding the probable net earnings
of the Northern Pacific company for
the year ending June 80, on account |
of their bearing upon the reorgani-
zation, that it seems desirable to
correct certain misleading state
ments regarding them. The figures
of the operations of the company for
June have not yet been made public,
and they may not be for some little |
time to come, as the receivers are
making up an annual statement that !
will include them. 1t can be stated, |
however, without fear of contradic- |
ton, that when the figures for the |
year are made up they will not show,
as frequently asserted, net earnings
Of more than $4,000, 900, the amount |
of the proposed Great Northern
guarantee.
The annual statement when made
UP will show receipts from all sources
Of approximately $6,6S9, 1872, and this
result has been spoken of as NET
earnings. 1t is far from being that.
From this amount must be deducted
the rentals, which include the inter-
sest paid on Duluth and Manitoba.
and Spokane and PaIouse divisional
9onds, taxes and several hundred
@lnousand dollars earned by branch
roads not owned or covered by
Northern Pacific mortgages, and
which consequently belong to the
bondhoIders of those branch lines as
part OF their rental. The total of
these items for the year ending June
80 last will not be far from 81, ,351, ,S3s.
Deducting this from the total net
receipts, as given above, and it an
pears that the net earnings are 81
SSf,s4o, or nearly $2,000,00O less than
the proposed guarantee of the Great
Northern company
DISPOSITION OF EARNINGS
The disposition of the net earnings.
as just shown, during the year ending |
June 81, was under the following heads: |
SINKING fund and interest on the first |
general mortgage bonds, sinking fund |
and interest on the Missouri division |
ponds, sinking fund and interest on |
Pend d'Orerille division bonds, interest |
on receivers certificates, miscellaneous
interest on receivers obligations and !
interest on collateral trust notes All |
OF these payments are obligatory to re-
tain the main line intact, to prevent |
the reeeivership from being in default. |
and to retain possession of valuable |
properties such as the st. Paul and |
Northern Pacific road, the securities |
or which are pledged under the COL |
lateral trust notes. The amount of |
these disbursement is 1866, ,822. against |
actual net earnings of 81, 337, ,943, show
ing that the receivers have run be- !
hind S2e,S79 in managing the property
during the last fiscal year.
There is not included in the above
disbursements the annual interest |
charge of $4,000 on the company's
equipment trust bonds, nor has any
payment been made on account of the
principal of those bonds. 1t appears
that there is not dollar available for !
the second, third, and consolidated |
mortgage bonds, and obviously no pro-
vision can be made from current re- |
infc fnv. yhx l~:I;&
of the property, which, according to all |
accounts, is sadly needed, both for |
safety and to reduce the expenses of \
operating the road.
TALK WITH MR.. HILL.
While passing through Chicago Mr. |
Hill was interviewed by the Chicago |
Tribune, to whom he gave the follow
ing information:
Should present plans be carried into
effect the reorganization of the North |
ern Pacific will present a situation un- |
paralleled in the history of American |
railroads. j. J. Hill, president of the |
Great Northern road, the active and |
bitter rival of the Northern Pacific, is |
to have absolute control of the prop
erty. There will be no consolidation. |
Each road is to be operated separately, |
but the most harmonious relations be- |
tween the two properties are to be es-
tablished. The combined value of the I
interests to be placed under Mr.. Hills
charge is in the neighborhood ofI
$500 600 900, and the miles of road will /
aggregate $500.
Mr.. Hill was in Chicago for an hour
yesterday and gave out the informa- !
ton. He also furnished the. first au-
thentic figures showing the amount |
of money lost by the Northern Pacific
in the last two years while receivers
have been in control. 1t reaches the
enormous total of $40, 1873, 80.
President Hill will take charge of
the Northern Pacific property on con-
dition that he is placed in absolute
control of a majority of the stock, |
and that the interest account must be
scaled down by at least $4,000,0G0. On
these conditions he promises to operate
the Northern Pacific in the same con-
seryative. and business-like manner
as he has managed the Great North
ern and make it just as profitable
property Under existing conditions
both roads, though they are nearly 100 /
miles apart, are subjected to much
unnecessary expense on account of
undue competition. These can be
avoided by the establishment of close