The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-12-24

Little Rock, Ark, Dec. 2S.-The ex-
pected in the railroad world happened
today. The Atchison, Topeka & Santa
F'e and the St Louis & San Franchises
railroads 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 H. c. Caldwell, in cham
bers. at $50 this evening.
The application was made by the
Union Trust company. OF New York.
trustees of the bondholders of the At
Gibson, Topeka & Santa Fe, and the
Mercantile Trust company, of New
York, trustees of the bondholders OF
the St. Louis & San Francisco. The
first intimation Of decisive action was
received at 2 o'clock this afternoon,
When the special which left ST. Louis
at o'clock this morning, arrived over
the Iron Mountain, with prominent
railway attorneys and officials on
board, who fastened at once to the
federal courthouse and were soon clos
eted with Judge Caldwell The party
included George F. Sharrett, clerk OF
the United States circuit court of Kan
sas; George H. Peck, general solicitor
or the Atchison, Topeka & Santa Fe;
T. u. Kenna, general solicitor of the
St Louis & San Francisco; II. T. Nor
r1ll, general manager and second vice
president of the Frisco; Chas. B. Alex
ander and w. w. Green, of the firm OF
Alexander & Green, New York. counsel
of the Mercantile Trust company. OF
New York. and w. A. Rossington. of
Topeka, counsel for the Union Trust
company, of New York They remained
behind closed doors with Judge
Caldwell until $50 o'clock, when an
order was agreed upon appoint
ing three receivers for the
Santa Fe SYSTEM. w. Reinhardt.
president of the Santa Fe; j. ]. Nc
Cook, general counsel Of the Santa Fe,
and Joseph G. Wilson, clerk of the
United States district court at Topeka.
the latter being the compromise receiver.
the railroads having recommended
Reinhardt, McCOok and George c.
N1ckerson, the latter director general Of
the system, but who was objected to
by the compliments. The receiver
ship met with no resistance on the part
OF the railway and an agreement was
quickly reached. The bills in both cases
showed the lines were heavily involved
with maturing obligations coming on
soon and interest due on Jan.
could not be paid and would be fore
closed In both cases the complain
ants bills went deliberately into fig
ures and We're full and yoluminous.
The bonded indebtedness aggregated
1892, 000,0 900, as follows: $780, coo first
mortgage bonds; 7,OO0,0O0 class A sec
ond mortgage bonds; s5,000,000 class
II second mortgage bonds. The inter-
est due Jan. 1 will aggregate nearly
S3,O00OO0, and the floating debt about
S5,OOO0OO, making a total liability of
about $240,000,0O0. j. w. Reinhardt
and j. j. McCook, the two receivers,
are well known in railroad circles
throughout the country. The other re-
vice-mayor of Topeka, and is consid-
cred very level headed man. A sup
! Elementary bill will likely
be filed at Topeka on Jan. 5, which
will be tantamOunt to a foreclosure Of
the Indebtedness. in which event the
branch lines, which have been sapping
| the Ife-blood Of the main line will be
| Topped off. The order in each of the
two cases is the same, and directs
| that the receivers be authorized and
directed to take immediate possession
Of all railroad and properties includ-
! ing 8,348 miles of operated lines and
run, manage and operate them and
execute the authority and franchises
of the roads and conduct systematic
ally their business. The receivers are
ordered to execute each bond for $50, 600
within the next twenty days and the
order contains an injunction requiring
| the roads to be turned over to the re-
lceivers. The order contains full direc-
lions of the receivers to employ and
discharge agents and employees and
bring suit and have authority
lover the moneys that come into
their hands; to pay the ex-
penses for operating the property,
| amount due for operating the road and
ltrack service, in mileage and taxes,
and the order provides that it is made
upon the express condition that all
legal debts now due and which were
contracted in the operation Of the
Iroad. and including damages and mon
ey and work furnished and done in the
construction, repair and equipment of
1.-THE roads shall be a first lien upon the
property, including all liabilities to per-
sons or corporations who may become
Isurety for the company or endorsee or
guarantee for it.
| The receivers are also required to pay
judgments found against them which
Iare not appealed from, and all pay
Iments of receivers are to be audited
and allowed by the receivers, so they
lneed not come into court on every &C.
casion. The lien 50 created for such
Iclaims shall continue until vacated by
Iorder of the court on the notice of per-
sons interested.
prosecute the suit to a final decree
without delay, otherwise the court will
discharge ahe receivers. The party
left ON the Cannon Ball at 7:35 for st.
Louis, Clerk Sheriff taking the papers
lin the case with him to Topeka, to bs
properly filed in the United States cir
cult court.