The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1893-09-21
PRESSING OBLIGATIONS
WHICH THE CLEVELAND, CANTON &
SOUTHERN COM MPANY COULD
NOT MEET

OcohblOu an Application Dy balQWln and /
Shields in the United States Court ana
the Appointment of Receivers for the
Railway Oompany.-A Statement Of the
Condition. OF Affairs.
For some time past the c. c. q S. rail-
road has not been meeting Its obiiga atoms
with that promptness and regularity that
has always characterized the company
but 10 was thought they would weather
through oil right. Their obligations were
too heavy and TOO pressing, however, and
IL has been found necessary to put the
road In the hands of receivers. The
Cleveland Leader gives q full account of
the court proceedings az follows:
Messrs, Baldwin d Shields, OF Canton,
attorneys for the road, appeared before
Judge Kicks in the United States Circuit
court, and stated that, owing to the recent
financial troubles which had prevented
the road from carrying out its plan of
funding its debt, IL would be necessary to
ask the court to assume charge of the
road in order to save IL from dissipatinR
its resources In lawsuits, foreclosures, and
other litigation. Judge Kicks appointedIas
receivers Messrs. Jonn W. Wardwell, of
this city, and Frederick Swift, of New
Bedford, Mass. The bond of each of the
receivers was fixed at $4,000. The de-
PENDANTS in the action are the Knicker-
booker Trust Company, of New York,
which holds ah eavy mortgage on the road,
md Clara Morgan Rotch, William r. Rotch
and Morgan Rotch, executors OF the estate
of William ]. Rotch, of Boston, who
are among the stockholders. This action
was taken in the interest of all concerned.
The road Is perfectly Solvent, It is claimed
| IL given time to recover from the effects
| Of the financial depression. Within the
next six months the road will have obli-
| cations to meet In the sum of Sl40, 900.
During the past two months the gross
| earnings of the road have shown q de-
/ crease OF 40 per cent on account of the
falling off of freight traffic by closing
of mines and factories, William Rotch, of
Boston, one of the heaviest stock kholders,
said last evening that the road had been
| In q very prosperous condition, and that
bad 1t not been for the stringeucy In the
| money market IL would have been able to
/ float Its bonds, meet all obligations, and
pay dividend to stockholders. The net
| earnings OF the year ending In June, 1892,
I were $35, 900 over the fxed charges, and
200 for the year ending June, 1898.
The floating debt was the heaviest obli-
cation, he said, and the applica ion for
receivers was made simply TO place the
affairs of the company In the hands Of the
court, where they could be administered
to the advantage OF all concerned with
out wasting anything by the litigation
that would necessarily follow, were that
| action not taken,
A Cleveland creditor OF the company
i bhlu last oV6ulUR tuht oil paEu6b were
satisfied with the action Of the company
| in going into the courts hands and that
the creditors expected to receive dollar
i for dollar. The directors OF the road,
after thoroughly considering the situation,
passed the following resolution, which
was embodied In the pleadings filed In
| court yesterday:
"Whereas, II appears from full con.
sideration of the present condition Of the
finances OF this company that the gross
earnings OF its railroad and property
show az a result of the existing financial
depression, a decrease In two months OF
| about 40 per cent, and consequent de-
crease In the net earnings of the company; |;
and
"Whereas. The genera, stringsncy In
money matters through lhe country has
prevented the funding of the floating
debt OF the company. and such floating
debt will largely mature In the near
future, and II 10 impossible to make pro-
vision Mt this time for the renewal thereof
or Its payment at maturity; and
"Whereas, The company 10 subject,
therefore, to be sued upon Its indebted
ness of various kinds, which is and must
remain unpaid because OF Its inability to
pay the same out of the aforesaid reduced
earnings and the impossibility of funding
said fioaIing debt; and, az conse-
quence thereof, its property, which IL
properly preserved and applied to
Il tuo VI ihucptoohObue
cient to pay the same, will be largely diA-
nipated and swallowed up In multitude
OF suits and costly litigntions; now, there
fore,
"Resoived, That It 10 the opinion of
this board that the interests OF the mort
gage creditors and general creditors of
the company, whether secured or uDse-
/ cured, and az well as the interests of tho
| company itself and Its shareholders, and
as we'll the interests of the general public.
to whom the company owes duty as a
railroad corporation and common carrier
| to properly perform it's duty to that pub
lie, demand that the properly be placsd in
| the handa of receivers until such time
as the indebtedness OF the company can
be met aud discharged or otherwise ar
ranged for, aud tnAt application be made
| TO the United, States circuit court for the
| appointment of receivers"
The board expressed the preference that
General Manager Wardwell a1d Mr..
, Swift be appointed by the court as re-
| ceivers. Messrs. Williamson, Gushing
, and Solway were present to represent the
Iknickerbocker Trust Company and
, Henry Rauney, Eaq,, to represent the
estate of William ]. Rotch, of Boston. j
NJ. Keating, OF New York, represented
Lowrey, Stone and Auerha?h, of Wall
street. The attorneys offered no objsc-
{ tion to the appointment OF the receivers
desiRuated, and an order was made BY
Judge Kicks, directing that the receivers
file their bonds within ten days and thai
, they make monthly reports to the court oi
| recHipta and disbursements.