New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-05-10
THE RAILROAD DEFAULT
A RrcErERsHrp SUGGESTED.
CONFERENCES REGARDING THE ST. LOUIS
ARKANSAS AND TEXAS RAILROAD
COMPANY.

President S. W. Fordyce OF tho st. Louis, Arkansas
ard Texas Railway Company, and Jefferson Chandler.
counsel Of the road arrived IN Nev-York yesterday ana
were IN conference with the Central Trust Company
and the Could Interests respecting the default Ia IN
forest on the first mortgage bonds OF the railway No
definite conclusion was reached that tho comforting
parties card TO make public. Further NEGOTIATIONS
viii be resumed to-day.
The lruedate object OF the legal representatives OF
the bondhoders the Central and the Mercantile Trust
Companies and the railway company appears to be TO
reach an agreement that viii unraYel the legal CON-
plcauons thai might grow out OF the payment oy she
Mercantile Company OF about onethrd OF the MAY IN
terest on the railroad bonds before tho Central Com
pany made It's protest. The coupons paid are In the
ross esson of either the Mercantile Trust Company
the railway and the bondhoders are confronted With
the DOS sbtIty that they may DO used as prior liens
against tho principal Of the bonds Other interesting
questions bearing upon the matter relate To The equues
Of the bondholders who were not paid, but VINO VIII
look 10 the Central Trust Company the trustee undcr
the mortgage, TO protect their Interests That COM
pany It was learned docs not hold the cancelled No
venbcr COUPONS although no doubt has been raised
that their cancellation not properly made when the
Metropolitan Company paid them. Tho subject OF adj
vertIsing the November payment and the non-adVer
Using Of the May payment together with the delay Ia
the action Of the Central Trust Company furnish ma
terial for the consideration Of the lawyers.
NNNNNA
Belt" road IN advancing, through syndicate, the
money needed for the May interest have not been ex-
planned. whatsoever they WERE the action OF the Cen
trail Trust Company has interrupted them 1t Is gen.
orally believed that steps for recevershp OF the rail-
way win DO taken at an early date. No formal con-
fesoa Of this intention could be secure yesterday but
Russell Sage one OF the trustees controlling the r'ad
who is believed TO have beon member OF the syn
dcate' which advanced the funds for paying the May
coupons, declares that other course seems 10 DO
open. The people who proposed to pay tho money 10
carry the road along require some security for their
advances, and II they cannot obtain It, the only re-
source left Is to obtain the protection Of the courts
Mr. sage said yesterday that in hfs Judgment the
action taken by the Central Trust Company which led
to the suspension OF tho payment OF interest on the
Cotton Belt' bonds was foolish proceeding. lie
added The syndicate was willing and abundanuy
able sustain the credit Of the railroad company, ana
IN doing shoudered big risk II the trustees IN.
DER the mortgage do not Wow the situation In that
light do not think that they take the same view oil
the matter would be taken by any prudent business
man. W those persons whose coupons have
not boon paid by the Mercantile Trust Company wiz
have walt for their interest until au entire read
iustmont Of tho matter IL completed
When asked II the road would not pass into the
hands OF q receiver, Mr Sage said that be expected
that receiver would DO appointed and sddod that IN
bis jud gnont that tho only b be pursued
10 from difficulties