The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-12-26
COULD BORROWING MORE MONEY
The Northern Pacific Determined to
Enforce the New Wage Schedule.
Canadian Pacific Negotiating With Seat
tie, Lake shore Eastern for En-
trance to Seattle, and May Get Track
age TO Tacoma.

/ urosscnp, of the United States court. ask
ing that the appointment of Atehison
receivers By Judge Caldwell be ratified
and that the receivership be extended so
as to include Ch.csgo lines.
TorEKs. Kan. Dec. o-George +. Shsr-
lit, clerk Of the United States circuit court.
has returned from Little Rack. Ark. with
the papers in the Santa Fe receivership
case. The bill OF the Union Trust Com
pany was sworn 10 before New York no.
tary December 81. This etfec,ually puts
aside the impression that the death of
George c. Magorn. chairman Of the Santa
Fe executive board. prscipiiated the re-
csivership. for the papers were drawn and
sworn TO before Magoun died. II Is stated
in the bill that the Santa Fe has beea dan
gerously near insolvency for a year. and
that for some months a receivership has
been known to be only a question OF .
brief time. The company was so hard
pressed for monev. the bill reeites. on Au-
gust 3 last that its president went to the
office of the Union Trust Company. New
York, and borrowed 500 600 at per cent.
To meet the Immediate demands of the
company. IL Is stated that since that
time. owing TO the period of financial de
preston, the Santa Fe has been continually
embarrassed for money. The company
has not repaid 70 theU Mon Trust Company
the short-time loan negotiated In August,
nor has it paid the interest on il. IL is
set forth IN the bill that in December,
1893. the company will have to pay 81. ioo,-
0o0 interest on first mortgage bonds, and
that in January. 1904, IL will have to pay
$3.50, 900, and between February and June.
1894. there will become due floating debts
to the sum of se70, 900, the entire floating
debt of the company being $5.aeo, 900 and
interest. In the guaranty fund notes for
81. .0p0. 600 will be due in Nav. 1894. and on
this interest viii aggregate 1910, 900. These
fund notes have been twice renewed and,
beside. there are other debts of the COM
pany due soon or to fall due. ageregating
some s2.oo0.o0o The petition sets forth
that the company is totally insolvent; that
with all this debt staring 1t in the face it
has not enough money TO pay day iaborers
along its line. and that inasmuch as its
creditors are becoming impatient. il Is
question of but few weeks until suits
may be brought that will disintegrate and
ruin the system therefore in consideration
of all these Numerous allegations, 8
receiver or receivers are asked for the
the answer of the Santa Fe company.
George r. Peck. general solicitor OF the
company answering the charges, confessed
all the statements as true; that the Santa
Fe was wholly insclvent, and that the
creditors were growing impatient and were
liable at any time TO close in on the COM
pany.
J. W. Reinhart. president of the COM
a d. IL % fa.a as.sx In
New York, and swore to it before a notary
December 20, the day before the bill asking
for receiver was sworn to. This goes to
show that the recelvership was brought
about by the Santa Fe company itself.
because 1t desired to give up the fight and
get under the protecting wing OF the
court. The receivership OF the Santa Fe
was not brought about so much by the
probable default in interest payments a.
by the company's utter inability TO meet
the floating debt The Barings did not
bring about the collapse. and Magonn's
death did not cause it or even hasten
1t. The company was hopelessly
in debt. and Reinhart went all
tne way to London a few weeks
ago to get a few million dollars. not to pay
interest, as everyone supposed, but TO pay
the floating debt Reinhart remained In
London week. He could not get cent,
and when he reached New York city on
his return his nrst official act was to order
the preparation OF rcceivership papers. IL
now developes tina, certain people In To-
peka had known since August that the
Santa Fe could last but .e " months. Of
iicers OF the United States court were on
the lookout for the papers almost daily,
and when iE was announced that Rein
hart had failed 10 get money in London
ten days ago the receivcrship vas fore.
gone conclusion.
Treasurer Edward Wilder, who has held
the position practically from the inception
of the Santa Fe road, speaking to an As
soeiated Press reporter today Of the receiv-
ership said:
'sThe recaivershlp was not q surprise TO
me at the last moment. because the death
of George {. Magoun, although not neces-
sarily embarrassing. afforded pre'ext for
the bears. who have been persistently
hammering our securities, to work on the
fears and imagiuations OF smaller specusa-
tors and this fact broke the price OF cur
securities still farther. Naturally such
action had its effect upon the efforts OF
Presiden. Remnant In providing for the
interest on the tloating debt due January
I. and there was no time for any new ar
raugements to be consummated. While 10
ia sometimes considered unfortunate for q
road 10 10 into the hands OF receiver, 10
is not inirequeBsiy. and ia this case IL was
a very wise move, because II will enable
the management TO handle the property
and financial burGen without tae natural
embarrassment that attends a period Of
general depression, shr.nkage OF values
and dusiaess in business The earn
.ogs OF the Santa Ee system have
been very satisfactory. and under or
dlnsry circumstances the hoating debt
could have been cared for without any
troab.e or even Inconvenience, but every
one knogs what difficulty there has been
during the last samraer and fail in raising
money on any collateral or security. The
receiye:saip IN this case does no. seem 70
me 20 Indicate anything bat a reasonable
period ot protection anti improved eondi-
lions. which we al believe can be counEed
upon during tie Coming year. shall permit
return OF the eoDsEnys Affairs Ia be
managed by the officers elected by tbs
sto~kholders, who certainly herd feel no
unnecessary anxiety. The bondholdeYs
ali. have TO aalt 3 little while for iheir
interest, but do NOS believe 1t ~iiI lie un-
necessarily delayed, because oar securities
are ample IL TIE condition Of business and
OF The financial word sss normal
General Manager Frey. when seen today,
said
The appointment Of receivers was .
surpriSe 10 nae. and while do not Eant 10
anticipate TIE genera. policy that will 20