The herald., 1893-12-26
SANTA FE RECEVERSH|P'
How the New Order Of Things
Was Brought About.
The Collapse Not Due to the
Death of MagOun.
Papers All Sworn to Before That
Event Occurred.
The Company Itself Initiated the Pro
ceedings Because 1t Was Hope
IessIy Insolvent-The OF.
ficials' Statements.
By the Associated Press.

By the Associated Press.
Topeka, Kan, Dec. 25.-George F.
Scharitt, clerk of the United States
court, returned from Little Rock, Ark,
with the papers in the Santa Fe re-
ceivership case. The bill of the Union
Trust company was sworn to before
New York notary, December 21st. This
effectually puts aside the impression
that the death of George @. Magoun,
chairman of the Santa Fe executive
board, precipitated the receivership,
for the papers drawn were sworn to be-
fore Magoun died.
1t ia stated in the bill that the Santa
Fe has been dangerously near ineol-
vency for year, and that for some
months receiverehip has been known
to be only question of brief time.
The company was so hard-pressed for
money, the bill recites. that on August
Sd last ito president went to the office
of the Union Trust company in Now
York and borrowed S200.O00 at per
cent to meet the immediate demands of
the company. 1t is stated that since
that time, owing to the period of fnAn-
cial depression, the Santa Fe has been
continually embarrassed for money.
The company has not repaid to the
Union Trust company the short time
loan negotiated in August, nor has it
paid the interest on 1t.
1t is set forth in the bill that in Decem-
ber, 1893. the company will have to pay
81, 100, 900 interest on first mortgage, and
that In January, 1894, it will have to pay
$450.0O0, and between February and
January, 1894, there will become due OF
the floating debt the sum of 5000, 900,
the entire floating debt of the company
being now $5,920,000. Interest on guar
anty fund notes for $9.000,O00 will be
aggregate $270, 200. lhese fund notes
have been twice renewed and besides
these are other debts of the company
due or soon to fall due, aggregating some
~ 1000 600.
TOTALLY INsoLvENT.
The petition sets forth that the COM
pany is totally insolvsn.; that with all
this debt staring it in the face, it has not
enough money to pay the day laboress
along it's line, and that inasmuch "a its
creditors are becoming impatient, 1t is .
question of but few weeks until suits
may be brought that will disintegrate
and ruin the system. Therefore, in con-
sideration ofall these numerous allegs-
tions, receiver or receivers are asked
for the property.
Accompanying this bill was the
answer of the Santa Fe company
George r. Peck, general solicitor of the
company, answered the preferred
charges confessed that all the state
ments were true, and that the Santa Fe
was wholly insolvent and that the
creditors were growing impatient and
liable at any time to close in on the
company. j. W. Reinhart, president of
the company, and Peck made this con-
fession in New York, and swore to it
before no5ary December Goth, day
before the bill asking for receivers was
sworn to. This goes to show that the
receivership was brought about by the
Santa Fe company itself, because it
desired to give up the fight and act
under the protecting wing OF the law.
CAUSE OF THE REcEIvERsHIP.
The receiyership of the Santa Fe was
not brought about 80 much by probable
default in money interest payments as
by the company's utter inability to
meet the floating debt. The Barings
|
goun's death did not cause it or even
hasten it. The company is hopelessly
in debt, and Reinhsrt went all the way
to London few weeks ago to get few
million dollars, not to pay interest, as
everyone supposed, but to pay the float
ing debt. Reinhart remained in London
week. He could not get cent, and
when he reached New York city on his
return, his first official act Was to order
the preparation of receiverahip papers.
1t now develops that certain people in
Topeka have known since August that
the Santa Fe could lsst but q few
months. The officers OF the United
States court were on the lookout Tor the
papers almost daily, and when it was
announced that Reinhars had failed to
get money in London, 10 days ago, the
rcceivership was foregone conclusion.
RECEIVER Wilson'S STATEMENTS.
Receiver Wilson of the Santa Fe ar
. rived here today. He said the receivers
would appoint D. B. Robinson, frst
vics.prssident, agent OF tho receivers to
have full charge of the active ope. alton
of the entire system. Wilson said the
receivers had agreed that no sweeping Z
changes should be made in the manage
ment. Wilson said that the receiysI 9
=
had just borrowed $2C0.C00 in St. Lc1is
for the Immediate payment of the wages
due the St. Louis and San Francisco em-
ployess; thst the employees of the Santa
, Fe system, proper, would receive then
wages promptly, not later than January
) Sd, out of the money boarded to -lesl
/ the January interest. Wilson said the
{ Santa Fe shops st Topeka win be filled
t with additional employees at once, and
run to their full capacity, ard ths road
be put in better condition.
TREASURER WILDER TAI ;s.
Treasurer Edward Wilder, who has
held the position practically frons the
. inception of the Santa Fe. said, spesk-
ing to an Associated Press reporter to-day
} Of the receivership: "Ths recsivership
! Was not . surprise to me ct the last mo-
! meut. becsuse the death OF George q,