Los Angeles daily herald. [microfilm reel] (Los Angeles [Calif.]) 1884-1890, 1889-09-11
1T OWES $225,OOO.
The Los Angeles and Pacific
Railroads Troubles.
PLACED IN A RECEIVERS HANDS
w. II. Spilman Will Manage the
Concern Until its Difficulties
Can be Arranged.

1t has been an open secret for weeks
past that the Los Angeles and Pacific
railroad was in bad condition financial
ly, and last Saturday it became known
that receiver would be appointed in a
few days. Yesterday matters came to q
head in the filing Of complaint in the
Superior Court with an application for q
receiver for the road. This action was
taken by, the California Bank of this
city as the holders of certain notes issued
by the railroad people. Joined with the
railroad as defendants to the suit are
M. L. Wicks, his wife and the American
Loan and Trust Company. The property
involved in the suit comprises the fran
chises, roadbed and rails of about twenty
miles of road extending from the Sisters
Hospital, along certain streets of
the city to it's western borders,
at Ivanhoe and thence along
the foothills to Santa Monica, with q
branch running from Ivanhoe across the
river to Burbank, being about six miles
in length. Besides these the corporation
has recently been granted franchise to
come almost into the center of the city
at the Plaza. This is merely franchise
right, but the road has not been con.
structed over this bit OF territory.
The complaint sets out the affairs of
the road very fully. The two notes on
which the suit is based were made about
a month ago, one for 81 200 and another
for $10,571.48, to w. T. Spilman. They
are made payable on demand. The road
was incorporated in 1887, with capital
of 50, $780, 900. 1t was first known as the
Los Angeles and Ostrich Farm railroad,
and the Los Angeles County railroad,
the former name being applied to the
Burbank branch, and the latter to the
Santa Monica line. About a year ago
they we're consolidated under the name
of the los Angeles and Pacific railroad
The Los Angeles County road, when
built, issued $4,000 of first mortgage
bonds, which were placed with the
American Loan and Trust Company.
Later NJ. L. Wicks set up claim that
the road owed him $4,000, to cover
which the road is alleged to have given
Wicks sixty of its first mortgage bonds.
After the roads were consolidated new
series of first mortgage bonds to the
amount of $240, 900 was issued, the old
ones being retired, the American Loan
and Trust Company taking the new
bonds. M. L. Wicks gave up his sixty
bonds of the old issue and received 40
complaint alleges that the company has
spent $3.50 900 in the construction Of the
road, and that the debts of the corpora.
ton amount to 1925, 1000. AS a further
reason for asking for receiver, the COM
plant alleges that M. L. Wicks has as
signed the ITO mortgage bonds held by
him to his wife, and a movement is on
foot to sell these bonds to an innocent
party who does not understand the situa-
ton the road is in; that this would place
the other creditors of the road at
disadvantage, as such purchaser would
have q preferred lien on the road to the
amount of $125, 900 over and above the
claims of M. L. Wicks. 1t is to afford
all the creditors an equitable claim
against the road that the application is
made. The application was made be-
fore Judge Shaw, who at once granted
it, appointing w. 7. Spilman as receiver.
just prior to the granting of the appli-
cation the First National Bank, of this
city, and the Baker Iron Works, placed
an attachment on the road, which
stopped the running of the trains yes
terday. Mr.. Spilman is of the opinion
that the trains will run as usual under
his management. Certainly his appoint
ment would be in favor of such solu-
ton of the immediate difficulty. Mr..
Spilman built the road, and was large
stakeholder in it until about month
ago. He then sold out, and the notes on
which this suit is based we're probably
given in payment of his stock. He
knows all about the affairs Of the road
and its management, and ought to be
able to run the road if any one can.
Spilman gave bonds in $1,000, with
James Mclaughlin 500, 900 Simon MAR
$4,000, j. Shoder $1,000, John M.
Johnston 5000, j. w. Luitwieler S., 900
and D. F. Donnegan SIS 900.