The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-21

Der g. 1sg1. and they were fGrtner dlfect-
ed 70 retain all books and other personal
property claimed by the Northern Facinc
or the receivers. and they were given
thirty days after fling the inventory 10
remove the property from the leased
premises They were also allowed by the
order TO run their own cars and engines
over the leased lines for the purpose OF
removing the property. and the court.
saws the answer by the order retained
Jurisdiction to determine in the pending
suit all questions to arise out of the Wis
consin Central property, or the matters
stated in the order.
The Chicago Terminals.
At the time OF the original appointment
Of the receivers. says the answer, the road
was and still is the owner of eighteen
millions OF the capital stock OF the Chi
cago K Northern Pacific Railway com
pany which owned valuable terminal
properties in Chicago. These properties
were being operated by the Northern Pa
cihc under lease assigned TO 1t by the
Wisconsin Central Railroad company and
the Wisconsin Central company. Imre-
diately after the surrender OF the Wiscon-
sin Central lease by the Northern Pacific.
receivers were appointed for the Wiscon-
sin Central Railroad company and the
Wisconsin Central company, and receivers
were also appointed for the Chicago *
Northern Pacific Railway company.
Since the above transactions, the re-
ceivers OF the Wisconsin Central COM
pany have interviewed In the cause of the
Farmers Loan & Trust company VS.. the
Northern Pacific Railroad company et al,
and on October j., 1888, asserted claim
against the Northern Pacific and the re-
eeivers for upward Of 10000 for rental
and other debts. To the petition plea OF
ultra wires was filed both by the receiy-
ers and by the Northern Pacific through
f. h.
issue made upon the pleas is pending, not
having been argued. A like petition for
rent amounting to more than $500, 600
was filed by the receivers of the Chicago
AZ Northern Pacific Railway company. 10
which the receivers OF the Northern Pa
cific answered in part and in part pleaded
that the lease was ultra wires, while the
company fled an answer and plea aver
ring the lease 10 be void as ultra wires.
The issues also are pending.
The general second mortgage, the gen.
erai third mortgage and the consolidated
mortgage. in addition TO other property
mortgaged TO the trustees call other
property and the rights of property of ev-
cry kind and nature OF the said party Of
the first part. now or hereafter 10 be ac-
CURED, wherever situated or however held
for use in connection with or for the pur-
poses OF the said railroads or any OF them
or the business of the party of the first
part ne COuSOH1diFQ mortgage lAT-
s~-r conveyed and mortgaged TO the trus-
tee certain stocks and bonds OF The rail-
road company.
The stocks, Bonds and Cash.
When the receivers were appointed there
came into their possession bonds of branch
line railroads, owned by the Northern Pa
c!iic, TO the amount of S34. ST., 297 81: stocks
ana coupons Of other companies, sl76Is.-
902S2: stocks and bonds deposited with
the trustee under the consolidated mort
gage and with the trustee under a certain
collateral trust mortgage, SIS. SD, 045. So;
bills and accounts receivable. s., 331, OBS ga
On the morning OF October IS there was in
the hands OF the receivers and standing
to their credit in banks cash 10 the amount
OF $oS2, 1859. This money was deposited
In banks in Seattle, Tacoma. Portland
st. Paul, Milwaukee. Chicago, Winnipeg
and New York; and on that day there
was deposited In Milwaukee $4,000. These
FUNDS were in the actual possession OF the
receivers October Is. and the stocks enum-
Grated had previously been transferred to
them.
owned "A Railroad I'm Wisconsin.
At that time. the answer alleges, there
was also in tho possession OF the receiv-
ers property of the railroad company val
ued at 100000. exclusive of locomotives
and cas-, all Of which had been acquired
by the company for use In the eastern
district OF Wisconsin. At that time the
company owned in fee a line of railroad
extending seventy miles from the west
ern boundary OF Wisconsin to Ashland.
and forming the answer says. part OF
the main line OF the road from Puget
sound 10 Lake Superior, and quilt under
the act OF congress OF July ? 1854 incor-
porating the railroad company. This sew
enty-mlle stretch OF road the answer de-
clares, is in the western district of Wis
consin, together with real estate. and the
railroad and a large part of the lands
are mortgaged 10 the Farmers Loan and
Trust Company. on October IS the loan
and trust company filed its bin in equity
in the eastern district of Wisconsin, set
ting up defaults In the payment OF inter
est and praying for decree OF foreclos-
ure and the appointment OF receivers. To
this hin the railroad company entered
It's general appearance, and the court re-
appointed the receivers. extended the pre-
Viously existing reCeivership TO the fore
closure suit and consolidated the suits in
TO one. The order was made after hear
ing counsel for the company and upon
its consent In open court. Similar pro-
ceedings We're subsequently taken in the
courts all along the line.
Jurisdiction Not Disputed.
From the time Of their original appoint
ment. say the receivers. they have held
possession OF the property and have ope-
rated IT, and neither their authority nor
tho authority or jurisdiction Of any of
the courts has ever been disputed They
have done various acts and various pro-
cecdings have been taken. at which the
railroad company has appeared and 10
which Il has consented. September l.
1875 they were authorized 10 issue So. 0o0.
coo Of certificates; September %. 1894, they
were allowed TO renew and extend the
certificates for three years. These GER
tiHcates are now alleged 20 be outstand-
iuc. in the hands Of innocent purchasers.
The receivers have expended money to
keep down the interest on the first mort
gage. and have paid large amounts for
interest and principal on other paramount
liens. They have appointed n land com
missioner have sold lands along the whole
line Of railroad and have made contracts
and convcyances % purchasers. They
have paid debts Of the company running
into millions: they have made trsffc
agreements and have executed contracts
of all kinds. on the faith OF which vast
amounts Of money have been invested
not only by the receivers. but by the pub
lie
Jenkins Jurisdiction Recognized.
From the beginning 20 tho end OF the
proceedings. continues the answer. the
railroad company has expressly consent
- - record. through lis counsel and ex-
e-utive officers - the Jurisdiction az the
circuit court for the Eastern district Of
Wisconsin, and has never directly or I'm
directly suggested in tina: court o. in
any other court that there was any lack
~ jurisdiction I'm the premises until the
present noffou was made
Finally. tive answer details tho proceed