The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-08-08
THE NORTHERN PACIFIC.
AN IMPORTANT MOVE BY THE
ANTI-HILL STOCKHOLDERS.
4 Motion Filed For the Removal of
the ReceiVcrs-An Affidavit BY
Brayton Ives.

SEATTLE, Wash, Aug. THE anti
Hill stockholders and bondholders Of the
Northern Pacific have made a move that
promises 10 block the Great Northern
in its efforts TO gain control of the North
ern Pacific. Today, OH affidavit of Bray
ton Ives, president of the Northern Pa
cific motion for removal of the receivers
Thomas L. Cakes, Henry c. Payne and
Henry G. Rouse, was made by Silas W..
Petit, general counsel for the Northern
Pacific, in the United States circuit court.
Mr.. Petit arrived in this city last even
ing after hurried trip from New York
He made every effort to keep his where
aboutS concealed from his opponents, and
checked his baggage for Helena. The re
ceivers, who knew he had gone west,
suspected Il new move, and after numer-
Gus attempts located him after he had
forty-eight hours start. The proceedings
taken today is the elimination OF a most
exciting chase across the continent, for Z.
Il. Bum, assistant general counsel for
the Northern Pacific, wIIh headquar-
tiers at St. Paul, and ex-senator Spooner
are now rushing across the continent
and will reach the Sound tomorrow, while
Receiver Payne is i short distance be-
hind, flying along on another special. lit
and order TO show cause resulted in
Judge Hanford setting the hearing for
Friday at 10 a. m. AT that time the re-
port OF all the Interested parties will
the proceedings in the United States court
at Seattle is that the Northern Pacific,
terminating here, has more property IN
Washington than any other state.
Ives affidavit sets up that the receivers
of the company were appointed by Judge
Hanford as auxiliary to the appointment
OF the receivers by the circuit court of
the eastern district of Wisconsin. He is
informed that the local courts made the
appointment without exercising it's in
dependent judgment. He alleges that no
4 10 lou,
Northern Pacific was or ever has been Sit
uated within the eastern district of Wis
conSin. and at the time of the appoint
ment the circuit court of the eastern dis
trict of Wisconsin had no Jurisdiction and
says that no decree made by the Wiscon-
sin court with respect to the manage
ment of the Northern Pacific property
could then or now be carried into effect
within that district.
The affidavit states that Judge Han
lords order appointing the receivers di-
rected them to pay out of the money
which should come into their hands from
the operation of the railroad current ex-
penSes, etc, such amounts as NAV be
mecess airy Tor the protection of the road
wise without the consent of the court
Ives alleges that the receivers have de-
posted moneys received by them In
oaLhs otner than those authorized by the
court and have applied the same to the
payment of debts against the company
other than those contemplated by the
ofder and that the receivers have failed
TO make any accounting The receivers
nave m1Sapplied large sums of the money
received by them from the sales of pub-
nc lands and other property of the
-Northern Pacliic company and from the
operation of The road, by appropriatine
the same TO the payment of debts moi
ehutled TO be paid in preference to the
interest and principal due under the mort
the case of the Wisconsin Central com
pany, and alleges that in that single
transaction the receivers paid out more
tnan SzO0Oo, when IN fact the lease in
VOWED was not binding upon the North
ern Pacific, nor were the claims entitled
to preference. The receivers it is al
legged, have unlawfully expended in Mon
tana and oregon money coming into their
possession Tor purposes entirely unneces-
sary. The petition goes into the details
a a. lpanylng the transactions of Henry
charges after he had caused the com
panys insolvency. through reckless meth
DDS, he went into court and secured the
appointment OF receivers who would stand
by him. 1t is alleged that Notwithstanding
tn fact that the receivers had been in,
Sructed by the courts of the east TO sue
Henry Willard, Charles L. Colby and Col
gate Hoyt, for many thousands of dol
lars, which they owe the Northern Pa
cific, no legal steps of any nature have !
been taken against the three. Notwith- |
i:iS me existence of claims against
Villard, the receivers have Ives alleges
paid him SiS0,G00 on prorniSsorv notes
which Willard held against the company |
while the money should have been 90 !
Piled to the debt Of Willard ehe receiv-
ers have also, it is said. sold valuable |
ands in this state without consulting the
court, and that they nave made tfaffi: |
arrangements without first applying To |
he court II is claimed that in October
1888 when the reorganization committee was /
'ormed. Henry Willard and Henry u |
Adams controlled It In the conduct of
he business of the trust estate. the re- !
have. it. is alleged and do CON
SANITY and habitually consult with Adj |
ans and follow whatever line of policy |
lie directs and dictates and at his in !
stance have removed officers of the COM |
oany and appointed others named by him. |
It is claimed that the receivers report ali |
If their. doings to Adams. but give no |
to The committees of the |
second or third mortgage bcndholders. or |
o the officers of the corporati ton. except |
~ specie answers to specific inquiries. In |
obedience to the prohibition of Adams. |
he receivers have, il is alleged, no per- |
;onal intercourse with the bondhOIde-s'
;ommittee, and officers of the company or
heir respective counsel, in respect to
he management of the trust estate or |
he transactions of the receivers.