The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-12-24
THE ATCHISON TOO.
Receivers for Another Great
Railroad System.
MAooun.s oeATH THE CAUSE.
Il Cut short Negotiations for rsnanessi
Afd-Eoute Of the Crows vest
Psss Line.

Lsrgrr Rock. Dec. 23.-Ths expscted in
the railroad world happened today. Inc
Atchison. Toneks A. santa Fe and tbs 81
Louis and San Francisco railroads and
branches. comprising the Santa re sys-
tenn proper. have been placed IN the hands
OF three receivers. the order being made By
u. s. Circuit Judge II. c. Caldwell IN
chambers at 30 this evening. The sppsics-
flon was made by the Union Trust Com
pany Of New York, trustees for the bond
holders OF the Atch:son. Topeka e santa
Re, and the Mercantile Trust Company, OF
New York, trustees for the eondhoiders Oh
the 81. Louis & San Francisco.
The first intima;ion of this decisive se-
tion was received at Q O'Clock this after
noon, when special train which Left II.
Louis 81 O'Clock this morning arrived
over the Iron Mountain road with promi-
nent railroad attorneys and officials on
board, who fastened 81 once To the Federal
courthouse and were soon cioseten With
Judge Caldwell The party included
George r. sharrett, clerk Of the United
Htatss circuit court OF Kansas: George ii.
Peck, general solicitor OF tbs Atchison,
Topeka Il Santa Fe: l.. ID. kenna. general
solicitor of the 81. Louis II San Francisco:
H. T. Morrill,. general manager aud sec
ond vice presiien. of the Frisco; Charles
b. Alexander and w. w. Green. Of
che firm of Alexander Green.
New York, counsel Of the Mercan-
tile Trns. Company, OF New York:
ard w. A. RossIngton, OF Topeka counsel
of the Union Trust Company, of New
York. They remained behind closed
doors with Judge Caldwell until $50,
when an order was agreed upon appoint
ing three receivers for the Santa Fs sys-
tenn ]. W. Eeinhart, president of the
santa Fe: j. J. Mccook, general counsel
OF the Santa Fc, and Joseph G. Wilson,
clerk of the United States district court at
Topeka, the iast-named being compro-
mise receiver in pla& Of George c. Sicker-
son, director of the system, who was
recommended by the railroad companies
but objected To by the complainants. The
Teceivcrship met With no resistance on the
part OF the railroad companies and an
agreement Was quickly reached.
The bills in the cases showed the lines
80 DO heavily involved with maturing obi
cations coming on soon and interest due
January which could not be paid, so that
the mortgages would be foreclosed. In
both cases the complainants' bills went
deliberately into figures and were full and
voluminous. The bonded debt aggregates
So. 0oo. 900. a. follows: Sl50,o0o.00o first
mortgage bonds: So, 0Oo. 0oo class A sec
ond mortgage bonds; s., 0o0, 600 class b Sec
ond mortgage bonds. The interest due
January will aggregate S. coo, 900 and the
floating debt IL about 5000 900, making
the total liability about 500. 900, 900.
j. w. Reinhart and J. J. McCook, two of
the receivers. are we'll known in railroad
circles throughout the country. The other
receiver. Joseph G. Wilson, has been twice
mayor OF Topeka and Is considered very
level-headed man.
A supplementary bill will likely be filed
at Topeka January 5, which will be tanta-
mount TO o foreclosure OF the bonded debt,
in which event the branch lines which
have been sapping the life blood OF the
main line will be Topped of. The order in
each of the two cases is the same. and di-
reefs that the receivers be authorized and
directed to take immediate possession of
all railroad properties. including {. $40
miles of operated lines. I" and run. manage
and operate them aud execute the author
lily and franchies of the roads, and con-
duet systematically their business. The
receivers are ordered 90 execute each a
bond for $4,000 within the noxt twenty
DAYS. and the order contains an injunction
requiring the road to be turned over
To the receivers The order contains
full directions 10 the receivers 10 employ
aud discharge employees. and bring suits
and have authority over moneys that
come into their hands. pay expenses for
operating the property. the amount due
To- Rt,.se - a..
&c, car mileage ard taxes The order
provides that il is made upon the express
condition that all legal debts now due and
which were contracted in the operation Of
the road. including damages and money
and work furnished and done In the con.
siruetion. repair and equipment of the
roads shall be FIRST lien upon the pror-
erty. including all liabilities 10 persons or
corporations who may become surety for
the company. or indorse or guarantees
for IL. The receivers are also required "a
pay judgments found against them which
are not appealed from aud ell payments
are 10 he audited and allowed by the re-
eeivers. so that they need not como into
court on every occasion. Liens created
for such claims shalt continue until va
Gated by order of court on notice of the
persons interested, Compiainants are re.
gaired to prosecute the suit To final de
cree without delay. otherwise the eour,
will discharge the receivers
The party left on the Cannon-haii at : 81
for ~. Louis. Clerk Sharrett taking the
papers in the case With him TO Topeka
be properly fled IN the United States cir,
cult court.
BosfoS. Dec. q. The directors of ths
Atchison system have issued q statement
10 the hondholders aud creditors sayine
that the sudden termination of negotia
sions fer financial relief has caused temns
rnry embarrassment and will prevent
further payment Of money now due and
interest maturing January l. The contin
nsd financial depression and eoincideat
shrsRsaFo Of tho market value Of the -.
euritscs used by the company as cotlaiorA
compelled a reduction OF the floating deb
aad caused excessive demands on III,
treasury To protect allSnterests aud nveyent
the dis migration Of the system. The 81
rectors have consented thai the protection
81 the courts he invoked. The AtchIsas
svstem rs 8 whole is amply able. ever
aader the present adverse circumstance
u earn SAFE balance above fxed charge,
II relieved from the floating debt, which 4
net greater nov than eighteen months ago
The obligations of the eomvanv are
Time notes CA collateral. due necenl, Ser
isaS. 20 Jane. 1894 81 1oo. Co; notes ans
loans on colts;eral due ca call. s. 8s. 90
total s. 81. Geo; interest and other Gnp,
obligations. due January I, ISA4. S. asa co
TIE market value OK the securities oxnet
by the company Is abcat equal 70 she en
tire anount OF the above obligations