Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-10-31
A RAILROADS eoBp D'ETAT.
The st. Louis and Southeastern I'm
the Hands Of a Receiver.
What a Prominent Officer Says
About 1t.
How the Evansville, Henderson and
Nashville BOndhOlders We're
FIanked.


The following Associated Press disqatch
was receised last night:
ST. Louis, oct. 30.-It will be an
nounced to-ii1orrow morning that; on APP
plication of Geo. Opdyke and Philo G. Cal
houn, of New York, trustees of the first con-
solidated mortgage bonds of the st. Louis
and Southeastern Railway Company, Judge
Treat, of the United States District Court
at Springfield, ILL.,, has appointed j. L.
Alexander, Treasurer of the company, as
receiver to have charge of all property of
the road in Illinois, Indiana and Tennes-
see, and S. join Boyle as receiver to
have charge of all property in Kentucky.
This arrangement will take effect Nov. /,
and the road viii remain under the pteSent
general management.
From a prominent official of The road we
obtain the following explanatory statement
concerning the probable effect of the legal
proceedings above mentioned:
"The appointment of a receiver will not
be a surprise TO those who have closely
watched the experiences of the most i'm
pOrtant railway lines during the period
since the panic of last year. The roads in
the best financial positions have exhibited
the signs Of embarrassment occasioned by
continued depression of business. The st.
Louis and Southeastern Railway has strug-
gled along, and, to the surprise Of its friends
and those lnimical TO 1t, has managed to
keep ahoat. There is no doubt It's cred
it has been injured by constant rumors and
hints OF its failure, and this has made the
efforts of its officers TO protect all its cred
itors and preserve its management to the
company a severe labor and trial.
ssThe county of Davidson and the State
of Tennessee have a large stake in that
portion of the road in this State. There is
still due, upon the purchase of the Edge
field and Kentucky railroad, about one
fourth of the consideration to be paid. 1t
is, therefore. a matter of interest to the
State, the county and the cO-pUrchasers, to
know the practical effect of the appoint
ment of a receiver.
"The State lien is the first and best Sc
curity upon the road, ahead of all mort
cages, other liens or Indebtedness. There
is no way Of impairing or disturbing
it, and any indulgence granted in
collecting it cannot effect the right
of enforcing it. / believe, however, that
the company will sooner re-habilitate
itself under a receiver, and cannot consider
the present movement of the mortgage
bondholders to secure their legal priority
in payment over general creditors, other
than as an advantage to all parties inter-
ested. The general litigation which arises
when an individual or firm or company be-
comes financially embarrassed, makes it
difficult and expensive to properly conduct
business. The present position Of the
company will enable the receiver to pay
cash for all labor and materials, and full pro
vision has been made for wages and pay
already due operatives. The officers Of the
company insisted upon this latter arrange
ment, and the bondhoiders freely admitted
its equity, and postponed their own rights
to enable the Receiver to honor the de-
mandS Of the employees for services already
rendered. The certificates of the indebt-
edness issued by the company, are to be re
deemed as soon as the Receiver can do so,
without positive detriment to the! road, as
to its efficiency in running.
"The Southeastern railway, since its
consolidation in 1872, has steadily increased
its BUSINESS, improved its road, added
equipment, and had, prior to the panic Of
last year, expended large sum for such
additional facilities for business, for which
it gave its obligations. The depression of
business has prevented a sale of its mortgage
bonds, and the officers have had a large
floating Indebtedness to struggle with, be-
ing entirely powerleSs TO fund the same.
The present earnings of the road are crafty
ing to tbs company and bOndholders, and
are sufficient 10 pay the interest upon its
rrst mortgages, and 10 leave large sur
plus.
-"The bondholders, upon default in pay
ment Of heir coupons, applied and secured
the appointment of the present Treasurer
Of the company, j. f. Alexander, as re-
ceiyer for Illinois, Indiana and Tennessee,
aud of St. John Bowie, for the portion of
the road in Kentucky, where the existence
Of prior mortgage necessitateS a separate
accounting for .eceipts and disbursements
for that State.
There is a perfect understanding be-
tween the bond, OldeFs and the company as
to running the road as through line, f ON
s.. Louis to Nashville, and the bond
holders desire that the present manage
ment shall remain in charge.
"The disposition is To make more eff |
cient arrangement to pay every creditor in |
proper priority what may be his due. The |
Trustees and the bOndhOldeTs believe that |
he road Is III excellent condition, an am |
pie security for their loan, and a valuable |
and that its business will greatly |
enlarge, on the revival Of business, as a
railroad of 100 miles in length that can, in
such times as are now upon us, earn net |
revenue of more than half million dollars
per annum, can safely count upon its fu-
ure, and will soon be clear of all its pre-
sent embarTasSments.a
We understand that the proceedings
AIKEN before Judge Treat were suggested
" the action of the Evansville, Henderson
md Nashville bondhOlders. The latter
we're too slow with their threatened suit,
md the first mortgage bondholders of the
line have got ahead of them.
OF course our county railroad commits
iOners will see that the interests of the
county do not suffer.