The San Francisco call., 1896-02-22
Cakes, Payne and Rouse May
Retire Completely From
the Road.
THEIR ACCOUNTS UNSETTLED.
One Little Item Will Be Fifty
Thousand Dollars for Legal
Expenses.

~ OilNs N. 1st ISUs [l.-J uQRG
Lacombe in the United States Circuit
Court this afternoon handed down de-
clslon to the effect that he would conf firm
the appointment of Frank G. Bigelow and
Edward W. McHenry as receivers of the
Northern Pacific Railroad Company in
place OF the three old receivers who have
resigned.
When several months ago the resigna-
tlons OF Thomas F. Oakes, Henry C.
Payne and Henry G. Rouse as receivers of
the Northern Pacific Railroad Company
were brought to the attention OF Judge
Lacombe, it was stated that Edward w.
McHenry and Frank G. Bigelow had been
appointed by Judge Jenkins of Wisconsin
to succeed them. These appointments be-
ing subsequently confirmed by Judge San
porn OF Minnesota, counsel for the Farm
ers' Loan and Trust Company and for the
general reorganization ommittee of the
stockholders asked Judge Lacombe to also
confirm the appointments. The Northern
Pacific Railroad Company, rs a corpor-
alton, opposed action as to the acceptance
OF the three designations and the appoint
ment of Bigelow and MeHenry. After
many conferences and much delay the
question of court jurisdiction, which had
also arisen. was settled satisfactorily to all
parties, and the hearing was definitely set
down for to-day.
1he nearing was upon motion by Her
bert B. Turner, counsel for the Farmers
Loan and Trust Company, for the confir-
nation of the appointment previously
made by Judge Jenkins of Wisconsin of
f. G. Bigelow and E. w. McHenry as re-
i
signed. Mr.. Turner recited at consider
able length the proceedings in the litiga-
ton from the time OF the appointment of
Oakes, Rouse and Payne as receivers un-
der the original Northern Pacific foreclos-
ure. He asked that the receivers bonds
be fixed at 100000.
Counselor Silas w. Petit for the Mort b.
ern Pacific Company said he did not op-
pose the appointments Bigelow and Nc
Henry, but asked that they be confirmed
as receivers together with r. M. Galloway
and Andrew T. Burleigh. The second
mortgage bond holders OF the road were
represented by E. Nathan of Cardoza, who
agreed in favor of the appointment of but
two receivers.
Mr.. Pettit's contention that Judge La
combe was not bound under the decision
of Supreme Court Judge Brown for the
reason that no consolidation of the original
creditors bill and the foreclosure of the
mortgage of 1870 had been effected, was
apparently not concurred in by his Honor,
who took the papers in the case and re-
served his decision.
Under previous order by Judge Lacombe
the old receivers have yet to file their ac-
in HI1fr of 10 c+o {aI
they have expended over $4,000 in legal
expenses.
at a quarter to O'Clock this afternoon
Judge Lacombe handed down decision as
follows:
'In view of the order heretofore made
by Justice Brown, while assigned to this
circuit, | am prepared to sign IN order in
similar form TO that made in the
court oissso-called primary iurisdic-
ton, consolidating the two suits, accept
ing designations of the old receivers
and appointing the new ones, but with
clause providing that there shall be kept
within this jurisdiction sum of money
not less than 100000 to provide for the
claims of any creditors here, and further
providing for the service of papers upon
such receivers in any case begun here.
lnasmuoh as the new receivers are nom
residents and this court has therefore no
means of referring their company with
the above terms by personal process, they
should give bonds in the sum of $780,
OOO."
BY this decision Judge Lacombe signi-
fies has intention to confirm the appoint
ment OF Frank G. Bigelow and Edward
W.. McHenry as receivers in place of
Thomas F. Oakes. Henry c.. Payne and
Henry G. Rouse, resigned. This has
already been concurred in by all excepting
the Judges of the State of Washington,
and the matter will be argued in that dis
trlct before Judges Hanford and Gilbert in
Seattle on March 2.