The morning call., 1893-12-24
A FRIENDLY ARRANGEMENT.
Indebtedness That Could Not Be
Promptly Paid.
PROCEEDINGS AT LITTLE ROCK.
Branch Lines Which Have Slapped
the Life Blood of the Main
Road May Be Topped Off.

lecteu I'D TIE railroad world happened 10
DAY. The Atchison. Topeka and Santa Fe
aud ST. Louis and San Francisco railroads
and branches, comprising the Santa Fe
system proper, have been placed in the
hands of three receivers. the order being
made by United States Circuit Judge Il.
c. Caldwell in chambers al 3 80 O'clock
this evening. The application was made
by the Union Trust Company of New
York, trustees and bondholdprs of the
Atchison. Topeka and Santa Fe, and the
Mercantile Trust Company of New York,
trustees and boDdhoders of the ST. Louis
and San Francisco.
The first iutima tion of decisive action
vas received at o'clock this afternoon,
when a special. which left ST. Louis at >
o'clock this morning. arrived over the Iron
Mountain road with prominent railway
attorneys and officials on board. who
FASTENED at once to the Federal court
house, and were soon cIoseted with
Judge Caldwell. The party included
George F. Sheriff, clerk of the United
States circuits of Kansas; George n.
Peck, general solicitor of Atchison. Topeka
and Santa Fe; Z. d. Kenna, general So
lctOr Of the st. Louis and San Francisco; :;
Il. T. Morrill, general manager and Sec
end vice-president of the Frisco; Charles
B. Alexander and w. W. Green of the firm
OF Alexander & Green, New York, counsel
for the Mercantile Trust Company of New
York. aud w. a. Ross ington of Topeka,
counsel for the Union Trust Company of
New YorA.
They remained behind closed doors with
Judge Caldwell until 3: 80 o'clock, when an
order was agreed upon appointing three
receivers for the Santa Fe system. J. W
ReiRhart, president Of the Santa Fe; J. ].
McCook, general counsel OF the Santa Fe,
and Joseph c. Wilson, clerk Of the United
= States District Court, were appointed. The
latter WAS compromise receiver, the rail
roads having recommended Reinhart, Nc
Cook and George c. \ ckerson, the latter
a director OF the system, hut who was
ode eted to by the compIainants. The
EeiE -sIfip met with no resistance on the
q ut OF the railroad companies and an
as~eeusnt was quickly reached. The
bills +. both cases showed the lines heavily
involved, with maturing obligations COM
ing on soon, and that the interest due J an
uary could not be paid and would be fore
closed.
In both cases the complanants and bills
went ella borately into figures and were
very full and voiuminous The bonded in
lows: $50. coo in first mortgage bonds
S77, ,O0O. geo in class A, second mortgage
bonds; S5.O0O000 in class B, second mort
gage bonds. The interest, due January 1,
will aggregate nearly S3.O0O.00 and the
floating debt is about 5000. 00O making a
total liability Of about $4,000, 600. j. NJ
Rejnbart and J. j. McCook, two of the re-
cpIvers, are well known IN railroad circles
49, ha thn
ceiver. Joseph C. Wilson, has been twice
Mayor of Topeka. and is considered a very
level-headed man. a supplementary bill
viii likely be filed at Topeka January 8,
which will be tantamount to foreclosure
of the bonded Indebtedness, in which event
the branch lines. which have been sapping
the life ana blood of the main line,
Will be Topped off. The order in
each of the two eases directs that the
receivers be authorized and directed 10
take immediate possession of all the rail-
roads and properties Gncluding 1916 miles
of operated ines) and run, manage and
operate them, ard execute the authority
and franchises of the roads and conduct
Systematically their business.
The receivers are ordered 10 execute
each bond for $4,000 within the next
twenty days, and the order contains an iD-
Junction requiring the roads to be turned
over TO the receivers. The order contains
e full directions for the receivers to employ
AID discharge agents and employees and
bring suits and have authority over moneys
that come into the T hands; to pay the ex-
penses for operating the roads and for
track service, car mileage and taxes, and
the order provides it is made upon the ex-
press condition that all legal debts now
due and which were contracted in the op-
GRAFTON of the road, and including dam
ages and money for work furnished and
done in the construction, repair and equip
ment of the roads, shall be the first lien
upon the property, including all liabilities
to persons or corporations who may be-
come a surety for the company or indorse
or guarantee for it,
The receivers are also requi;ed To pay
judgments found against them which are
not appealed from, aud all payments of
the receivers are TO be audited and allowed
by the receivers so they need not come
into court on every occasion, The lien so
created for such claims shall continue
until vacated by an order OF the court or
notice on the persons interested. The
receivers are required to prosecute the
suit to final decree without delay, other
wise the court will discharge the receivers.
The party left on the cannon ball at 7:35
O'Clock Tor st. Louis, Clerk Sheriff taking
the papers In the case with him to Topeka
TO be properly filed in the United States
Circuit Court.
TOPEKA, Dec. 23-General Manager
Frey says the appointment of receivers
VIII result In marked improvement of
the Atcnlsons physical condition. lie
will now be able to further i'm prove il and
make 1t the best railroad property in the
world.
THE DIRECTORS EXPLAIN.