The silver blade. (Rathdrum, Idaho) 1895-1903, 1895-08-10
A MOTION MADE IN COURT
Alleges That Their Appointment was
Illegal. and That They Have
Mismanaged the Funds.

holders and bondholders Of the North
ern Pacific have made move that
promises to block the Great North
ern in it's efforts to gain control Of the
Northern Pacific. Today on afhdavlt
of Brayton Ives, president of the North
ern Pacific, motion for the removal
Of Receivers Thomas f. Cakes, Henry
G. Paine and Henry G. Rouse was made
by Silas w. Petit. general council for
the Northern Pacific, in the United
States circuit court. Mr.. Petit arrived
in this city last evening after hurried
trip from New York.
He made every effort to keep his
whereabouts concealed from his oppo-
nents and checked his baggage to Hell
ena. The receivers, who knew he had
"gone west" suspected new move,
and after numerous attempts located
him after he had 4S hours start. The
proceedings take today were the Gull
mination of ~ most exciting chase
across the continent, for c. E. Bum,
assistant general counsel for the North
ern Pacific, with headquarters at st.
Paul, and ex-senator Spooner are now
rushing across the continent and will
reach the sound tomorrow. while Re-
ceiver Paine is short distance behind.
The petition and order to show cause
resulted in Judge Hanford setting the
hearing for Friday at 10 a. m. At that
time the report of all the interested par
ties will have arrived. The reason for
bringing the proceedings in the United
States court at Seattle is that the
Northern Pacific, terminating here, has
more property in Washington than in
any other state.
Ives affidavit sets up that the receiv-
ers of the company were appointed by
Judge Hanford as auxiliary to the ap
pointment of receivers by the circuit
court of the eastern district of Wiscon-
sin. He is informed that the lower
court made the appointments without
exercising it's independent Judgment
He alleges that no part Of the railroad
or land grant of the Northern Pacific
was, or ever has been, situated within
the eastern district Of Wisconin and at
the time of the appointment the cir
cult court of the eastern district of
Wisconsin had no jurisdiction and says
that no decree made by the Wisconsin
court with respect to the management
OF the Northern Pacific property could
then or now be carried into effect
within that district.
The affidavit states that Judge Han
ford's order appointing the receivers
directed them to pay out Of the money
which should come into their hands
from the operation of the railroa d
current expenses, etc., such amounts as
may be necessary for the protection of
the road. They were not to use any
money otherwise without the consent of
the court. Ives alleges that the re-
ceivers have deposited the moneys re-
ceived by them in banks other 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 order. and
that the receivers have failed to make
any accounting. The receivers have
misapplied large sums of money re.
ceived by them from the sales of public
lands and other property of the North.
ern Pacific company and from the on.
GRAFTON Of the road by appropriatinp
the same to the payment of debts moi
entitled to be paid in preference to the
interest and principle due under the
mortgage. The receivers, it is alleged
have unlawfully expended in Montana
ana oregon money coming into their
possession for purposes entirely unnec.
essary.
The petition goes on into the details
| accompanying the transactions of Hen.
| ry Willard with the Northern Pacific
| and charges that after he had caused
the company's insolvency through reck
less methods he went into court an6
secured the appointment of receivers
VINO would stand by him. Notwith.