St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-24

ing-Receivers Have Full Au-
thority to Operate tho System,
Discharge and Employ Help.
LITTLE Rock, Ark, Dec. 2?.-The
expected in the railroad world happened
To-Day. The Atchison, Topeka & Santa
fe and st. Louis IL San Francisco rail-
ROADS 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 81. c. Caldwell. in cham
bers in this city, at $50 o'clock this
evening. The application was made by
the Union Trust Company of New
York, trustees for the bondholders of
the Atchison, Topeka & Santa Fe, and
the Mercantile Trust Company of New
York. trustees for the boudholders of
the st. Louis q San Francisco. AL
though the press of the country has an.
tlclpated the result for some time past,
not until the death of Chairman George
Z. Magoun. last week. was any immedi-
ate action contemplated. The first in
tlmation of decisive action was received
at o'clock this afternoon, when
special. the Catoosa. with
baggage car attached, which left
st. Louis at 2 o'clock this morning,
arrived over the Iron Mountain with
prominent railway attorneys and Off
Gals on board, who FASTENED at once to
the federal court house and were soon
closeted with United States Circuit
Judge H. c. Caldwell, who had arrived
from st. Louis the night before. The
distinguished party included George F.
Sharett, clerk of the United States cir
cult court of Kansas, of Topeka;
George II. Peck. general solicitor of the
Atchison, Topeka & Santa Fe, of Chi
cago; E. d. Kenna, general solicitor of
the st. Louis Il San Francisco, of st.
Louis; A. ]. Morrill,. general manager
and second vice president of the 'Fris-
co. of ST. Louis; Charles b. Alexander
and w. W. Green. of the firm of Alex
ander q Green, New York, counsel for
the Mercantile Trust Company of New
York, and w. A. Rossington, of Tope-
ka, counsel for the Union Trust Com
pany of New York. They remained
closeted
BEHIND CLOSED DOORS
with Judge Caldwell until $50 o'clock.
when an order was agreed upon ap-
pointing three receivers for the Santa
Fe system-J.W. Reinhgrt. president of
the Santa Fee system; j. j. McCook,
general counsel of the Santa Fe system.
and Joseph c. Wilson, clerk of the
United States district court at Topeka,
KAN, the latter being ascompromise re-
ceiver, the railroads having recon-
mended Reinhart. McCook aud George
c. Nickerson, the latter director of the
system, but who was objected to by the
complainants. The receiyership met
with no resistance on the part Of the
railroad companies, and an agreement
was quickly reached. The bills in both
cases, that of the SantaIFe and Frisco"
showed that the lines were heavily in
volved with neutrality-suspicious. COM
ing on soon, and that the interest due
Jan. could not be paid and would be
f0reclosed. In both cases the COM
plainants' bills went deliberately into
hgureS and were very full and
volumlnouS. The bonded indebted
ness aggregates 232,O0O,O0O, as fol-
lows: sl50,0OO,000 first mortgage bonds;
Si7,OOO.0OO, Glass "a" second mortgage
bonds; 100000, Glass "B'' second
mortgage bonds. The interest due Jan.
Will aggregate nearly $4,000, 600, and
the h0atlng debt is about $1,000, 900,
making a total liability of about s24O.-
O00,000. 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 C.. Wilson.
has been twice mayor of Topeka, and is
deemed very level-headed man. A
supplementary bill will likely be filed at
topeka Jan. (which will be tahtamount
to foreclosure OF the bonded indebted
ness, i'll which event the branch lines
which have been sapping the life blood
or the main lines. will be Topped off.
The order in each OF the two eases is
the same, and directs that the receivers
be authorized and directed to take
immediate possession of all the railroad
and properties Qncluding S,346 miles of
operated lines). and to run,
MANAGE AND OPERATE THEM,
and to execute the authority and fran
chiseS OF the roads and conduct system.
atically their business" The receivers
are ordered to execute each a bond Tor
$4,000 within the next twenty DAYS.
and the order contains an injunction
requiring the roads to be turned over to
the receivers. The order contains full
directions to the receivers to employ
and discharge agents and employees and
to bring suits and have authority over
the moneys that come into their hands:
to pay expenses for operating the proo.
erty and amounts due for operating the
roads, and Tor track service. car mile
aye and taxes; and the order provides
that it is made upon the express condi-
ton that all legal debts now due, and
which were contracted in the operation
of the road, and including damages
and money and work furnished
and done in the construction, re-
pair and equipment of the roads, shall
be first lien upon the property. includ-
ing all liability to persons or corpora
lions who may become surety for the
company or indOrse or guarantee for it.
The receivers are also required to nav
judgments which are found against
them which are not appealed from, and
all payments of the receivers are to be
audited and allowed by the receivers,
so that they need not come into court
on every occasion. The lien so created
for such claims shall continue until va
Gated by all order of the court on notice
to the persons interested. The COM
plainants are required to prosecute the
suit to final decree without DELAY, other
wise the court will discharge the re-
ceivers. The distinguished party left
on the Cannon-Ball at 7:S5 for st. Louis.
Clerk Sharett taking the papers in the
case with him to Topeka to be properly
filed in the United States circuit court.
REST IN THE WORLD