Judge Hanford Shields Northern Pacific Wages From the Garnishment Knife
Receivers win authority to issue certificates and pay employees directly, blocking creditors from attaching railroad paychecks.
To Pay for Running the N. P.
Receivers Ordered to Issue Certificates.
Wages Cannot Be Garnished.
Under instructions from the general counsel for the receivers of the Northern Pacific railroad, the local attorneys, Ashton & Chapman, came over from Tacoma Wednesday for the purpose of submitting to Judge Hanford petitions similar to those presented in other districts traversed by the railroad, asking for orders giving effect within this jurisdiction to orders heretofore made by Judge Jenkins, at Milwaukee, authorizing the issue of receivers' certificates and prohibiting the garnishment of wages of employes of the receivers.
Judge Jenkins ordered, first, that the receivers shall pay the wages earned by the employes to said employes, or to one specifically authorized to receive the same by said employes; second, when the receivers are served with notice of garnishment or any other notice or writ or process issued out of any court, whereby it is sought to attach, garnish or appropriate wages due employes of the road, engaged in its management or operation, the receiver shall deliver to the clerk of the court issuing such process in garnishment a copy of the order, and respectfully decline to proceed thereunder.
The receivers were directed to present certified copies of the order and petition to the several United States circuit courts within the districts along the line wherein an application for foreclosure bills have been filed, and to ask those courts for similar orders, and Judge Hanford yesterday complied with the order on his part.
Judge Jenkins, of Wisconsin, has primary control of the road, as the receivers were appointed from that court, but he requires the sanction of the United States circuit courts of the various districts through which the line operates to give the order and orders full force.
“The receivers shall pay the wages earned by the employes to said employes.”
Railroad bankruptcies and wage protections remain live issues; the 1895 order shows courts balancing creditors against workers' pay. The Northern Pacific's receivership was one of the era's giant corporate restructurings, and Judge Hanford's Seattle court was a key venue.
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