Railroads -- United States; Railroads -- United States -- Finance
The situation at the end of October, 1895, was as follows: in
Wisconsin, Minnesota, and North Dakota there were two receivers,
Messrs. McHenry and Bigelow; in Montana there were three receivers,
Messrs. Mills, Bonner, and Burleigh; and in Idaho, Washington, and
Oregon there was one receiver, Andrew F. Burleigh. It was a condition
of affairs which could not be endured. In each of the Western States
orders were made compelling all agents or persons connected with the
road to deposit all money collected in that state, and it was at any
time in the power of the receivers in any state to appoint operating
officers distinct from those managing traffic over the other parts of
the line. On January 9, 1896, Judge Gilbert simplified the situation
by retiring Messrs. Mills and Bonner, and by appointing Andrew F.
Burleigh sole receiver for the district of Montana. This reduced the
number of receivers to three, and left Burleigh in control of the
road west of North Dakota, and McHenry and Bigelow in control of the
rest. Application was now made to the Supreme Court of the United
States, and on January 28, 1896, four justices of this tribunal,
acting as justices assigned to the several districts in which the
Northern Pacific Railroad Company had property,[626] decided that
Judge Jenkins’s court for the Eastern District of Wisconsin should
be considered the court of primary jurisdiction, and issued each an
order to this effect to take effect in his particular circuit.[627]
The various circuit judges hastened to conform. On February 21 Judge
Lacombe confirmed the appointment of F. G. Bigelow and E. H. McHenry
as receivers for the Second Judicial District, and similar action had
by then been taken by the judges of the other districts except that of
the state of Washington. There Judges Gilbert and Hanford refused to
discharge Burleigh, although recognizing that the general orders for
the management and control of the railroad property were henceforth to
issue from Judge Jenkins’s court.[628] The judicial strife was thus at
an end. President Ives obtained the removal of the receivers to whom
he particularly objected, but did not overthrow the authority of the
Milwaukee court, nor secure any material gain to compensate for the
great trouble which he caused.
With the receivership tangle straightened out it became possible to
proceed again with the work of reorganization, and on March 16, 1896,
the final plan was published, endorsed not only by the Adams Committee,
but by President Ives and his Stockholders’ Protective Committee, and
by other important interests as well. The feeling had become general
that some action should speedily be taken, and that it was in the
interest of all parties that the factional conflicts which had raged
so long and with so little result should cease. Reorganization was
proposed on the following basis:
Public-domain text, read in full here on John Shaqi.
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