Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-02

| ST. LOUIS, Mo. June 1.-The Frisco
case, on application of the stockholders for
an injunction to prevent the consolidation
| of the Frisco and Atchison railroads,
was resumed in the United States
| circuit court this morning Mr. Ed
| keyan, counsel for the Atchison and Frisco
| roads, and their officers secured consent of
| the court to introduce the entire annual re-
ports of the two roads from 1879 to date,
| from which Henry Hitchcock counsel for the
stockholders, had read excerpts on Friday.
| This, he said, in the case of both roads
and the record evidence being concluded,
| he took up the work of reading affidavits of
| officers of both companies, and of mer-
| chants and tradesmen who have business
| with the two roads, and also with stock
| holders who are in favor of consolidation.
The affidavit of T. w. Reinhart, vice-presi-
dent of botn the Frisco and AtchiSon roads,
was first read and is considered the weight
lest evidence in the case. 1t is nothing
more apparently, than somewhat of an eX-
pose of the deplorable condition of the
Frisco finances when he made an eXamina-
ton last fall In this report Mr..
Reinhart says the company has steadily
been falling off in business and its float
ing debt was being considerably increased.
The condition OF affairs was due to the fact
that the revenue OF the COM
pany had not been sufficient TO
TO provide for sinking funds, interest on
bonds, rents, guaranteed obligations,
interest on floating debts, improving its
property and to pay interest on its stock.
It either had to dispense with some of
these or borrow money, and the latter courso
was taken-hence the large floating
debt which existed in NAV 1890
have it at once. Great as were the present
demands of the company, yet fixture, reve-
nueS were still expected as the prosperity of
the corporation and the growth of its traffic
were dependent uOon the additional equip
ment of cars. engines and machinery, and
upon improvements 10 its plant, which
though long contemplated, had been de-
ferred because of lack of funds. He said
further, he could get money from no one
but the Atchison, as the banks refused, and
financial agents demanded payment
on their paper the day 1t was
dull. Outstanding mortgage bonds amount
to SIS, 100000, q great many of which are
bearing per cent interest The scheme is
to issue $50, O0O. 600 in bonds at per cent
and replenish the treasury, and to protect
the company against any demand. The plan
is now complete and ready to be carried
into execution and only awaits proper au-
thority to be given by the stockholders.
From now to the lst Of July" continues
Mr.. Reinhart, the larger proportion of
the companys annual fixed charges
become due, and must be pro-
vided for. If the plan now under
consideration, which is the only one that
could be carried out under any circum-
stances, is not authorized by the stock
holders, the company will find itself on
July /, not only delinquent in the payment
of several million dollars of floating debts
and liabilities, but unable to meet the pay
ment of its interest on its'direct funded
debt
Other affidavits were presented to the
effect that the Atchison had never taken
part in the management of Frisco affairs,
except as a stockholders as to the benefits to
be derived on consolidation. etc.