The herald., 1893-12-26

Msroun. although not necessarily en-
barrasaing, afforded pretext for the
bears, who have been persistently ham
mering our sureties. to work ON the fears
and inlskinations OF the smaller specu-
our securities still further. Naturally,
such action had effect upon the efforts
of President Reinhart in providing for
the interest on the floating debt due
January 1st, and there was no time for
any new arrangements to be coneum'
mated. While it is sometimes consid-
cred unfortunate for q road to go into
the hands of receivers, 1t not infrequent-
" is. and in this case was, very wise
move. because it will enable the man
agement to handle the property and the
financial burden without the nat
ural embarrassment that attend
period OF general depression.
Notwithetanding the shrinkage of values
and dullness in business, the earnings
of the Santa Fe system have been very
satisfactory, and under ordinary circum-
stances the floating debt could have
been cared for without any trouble, or
bven inconvenience, but everyone
knows what difficulty there has beea
turing last summer and fall in raising
honey on any collateral security.
The receivership in this case does not
leem to me to indicate anything but a
reasonable period of protection until
improved conditions, which we all be-
tieve can be counted upon during the
toming year, shall permit the returns OF
the company's affairs to be managed by
The compsny's officers elected by the
ttockholders. We certainly need to
leel no uneasinees, except that the bond
holders will have to wait q little while
lor their interest, but do not believe 1t
will be unreaeonably delayed, because
tur securities would be ample II the
condition of business and of the tnan-
sial world were normal"
MANAGER FREY's OPINIONS.
General Manager Frey when seen to-
lay said: "The appointment of receiv-
trs was q surprise to me, and while l
10 not want to anticipate the general
eolicy that will be pursued by the re-
teivers, yet | will say at the end OF the
teceivership that the Santa Fe road will
ee in the best condition of any road in
ihe world. The road at present is in
tetter physical condition than it has
teen for 10 years, and that condition,
IN my opinion, will be improved on.
the business OF the Santa Fe has in
lreased much faster than it's facilities,
Cnd in my Judgment the receivers will
jdd to these qualities. So far as the
lffect of the receirership goes it will not
is felt by the public In fact the
keople will not know the road Ia
handled otherwise than it hss been
h the past, it will give it's patrons all
scilities heretofore given, and, in my
loinion, better service. The business
h the road, while it has not been as
bod as last year, is gradually ge tting
Jack to its normal condition and will
bach it by spring. The death OF Ma
bun probably brought on the receiver
bip at this time, but the real cause OF
/ is the generally deplorable condition
h the financial world and the tight
honey market. No money could be
balized on the roads securities to meet
he January interest, and there was
tnly one thing to do, and do not be-
feye the course pursued will be disad-
tsntageous to the business interests oil
lac road or will be felt, at least by any
j1e except the bondholders, and in my
ipinion they will not be kept waiting
i5ry long. While l cannot speak for
be receivers. yet in my opinion no re-
ienchment will be made, but it will
lot be long of course before their policy
Il management will be made known"
REORGANIZATION PLAN.
ST.. LOUIS, Dec. 25.--Ed M. Kenna
eneral attorney of the ST. Louis &
Ian Frsncisco, part Of the Atchison
topeka g. Santa Fe system, said this
horning in reference to the appoint
hent of receivers: "The directors be-
leve within three or four, or at least siz
honths, they will be able to devise 6
liam by which the company can b'
aken out of the receivers hands
his plan will not involve any assess
hent OF stock nor shrinksge in values
r interest rate OF bonds, but will b'
ormulated by the use of the collstera
he company has, as basis for col
ateral trust"
The principal cause of the collapse j
aid to be the failure of the Atlantic 4
acifc to pay over 100000 it owes
CHICAGO LINES TO BE INCLUDED.
CHICAGO, Dec. 25.-Tomorrow w. FL
.ossington, attorney for the Uniol
rust company, will file bill be
)re Judge Crosscup of the Unite'
tates court, asking that the appoint
lent of the Atchison receivers by Judg
aldwell be ratified and that the receiv
rship be extended 30 as to include tn
hicago lines.