Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1893-12-26
UNABLE TO. PAY.
TIE Santa Ys Road Hss Liabilities
Of 040,ooo,ooo
n CAST EVEN nEEr Tue INTEREST.
THE SANTA rx GIVES OF.

cASTA En- OlVtS OT.
LrrTr.E ROCg. Ark, Do. 25-Anothcp
big railroad Is In deep distress The
Aschison, Topeka & Santa Fc aud 81
Louis & San Fraucisco railroads and
branches, comprising the Santa Fc sys-
tenn proper. have been placed
In the hands of three receivers,
the order being made by United
States Circuit Judge II. C Caldwell.
In chsmbNsA In this city At $3.50
o'clock Saturday evening. The appli-
cation was made by the Union Trust
company Of New York. trustees for the
bondholdcrs Of the Atkinson. Topeka
4 santa Fc. and the Mercantile Trust
company ct New York, trustees for
the boudholders OF the St Louis 4
San Francisco.
Not Cnexpected.
Although the press of tho country
has anticipated the result for some
time past, not until the death of Chair
man George C. Magoun last week was
any Immediate action contemplated
The first intination of decisive action
was received ut : o'clock Saturday aft.
ernoon when special sleeper, the
Catoosa. with baggage car attached,
which left St Louis ut 9 o'clock in the
morning, arrived over the Iron Noun
tain with prominent railway attorneys
ana officials on board, who hastened ut
once TO the federal courthouse and
were soon closeted with Judge Cald.
we'll, who had arrived from ST Louis
the night before
Receivers Named.
They remained closeted behind closed
doors with Judge Caldwell until $3.50
o'clock, when IN order was agreed
upon appointing three receivers for
the SANTA Fe system: j. w. Rein
hardt. president Of the Santa lie
system; j. J. McCools. general
counsel of the Santa Fee system. and
Joseph G. Wilson, clerk of the
United States district court at Topeka,
Kan. the latter being q compromise
receiver. the railroads having RECON-
mcndcd Reinhardt, McCoo!f and George
c. Nickerson, the latter being director
of the system, but who was objected TO
by the compliments
No Protest.
The r.ceivership met with no resist.
ance on the part of the railroad COM
panies, and an agreement was quickly
reached. The bills in both cascs-that
OF the Santa Ec md 'Frisco-showed
that the lines were heavily involved,
with maturing obligations coming on
soon, and that the interest due Junu.
ary could not be paid ind would Re
fOreciOsed. In both cases the CON-
plaiuauts' bill went deliberately into
fRures and were very full and vol
luminous
Debts Are Enormoas.
The bonded indebtedness aggregates
sac2. 900, 600. us follows: First mort
gage bonds. $50. OOo, 900; class A, Sec
Ond mortgage bonds, 81, 0oO. Ooa; class Il.
second mortgage bonds $4,000, 600.
The interest due January will aggre-
gate q, OOo, 900 and the floating debt is
about g, OOO. 900. making total liabil.
ity Of about sa40, 100000.
Branch Lines to BE Cut On.
]. w. Rcinhardt and J. J. McCoolx,
two of the receivers, are we'll known
In railroad circles throughout the coun-
try. The other receiver, Joseph c. vii.
son, has been twice mayor Of Topeka.
A supplementary hill will likely be
fled ut Topeka January 8, which will
be tantamount TO foreclosure of the
bonded Indebtedness, in which event
the branch lines, which have been sap.
ping the life blood Of the main lines,
will be Topped of.
Oricrs NJ the Rscsiver.
The order in each of the two cases ia
the same and directs that the receivers
be authorized and directed to take i'm.
mediate possession of all the railroads
and properties (including s,346 miles Of
operated lines) and 70 run, manage and
| operate them. ind to execute the au.
thority and franchises Of the roads and
| conduct systematically their business Sc