The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-26
Mr.. Peek Predicts IA Reorganization,


CHICAGO. Dec. 25.-"An early reorganiza-
ton of the Santa Fe system is probable"
said General Solicitor George r. Peck to-
night. And 1t is hoped. that the reorgani-
zation will be completed without the lop-
ping. off Of the branches"
Mr.. Peck returned from Little Rock to-
night. ". II. Rossington, of Topeka Kan,
attorney for the Union Trust Company.
came on 10 Chicago with Mr.. Peck. The
two attorneys spent considerable time in
consultation, but neither would say that
anything definite had been determined. To-
morrow Mr.. Rossington, on behalf of the
Union Trust Company, will file an auxiliary
till before Judge Grosscup, asking that the
appointments as made by Judge Caldwell,
OF the eighth judicial circuit, be ratified.
The bill will ask that the receivership be
extended so to include the Chicago lines.
The immediate cause of the application
for the appointment of receivers was the in
ability to pay the s., 600 900 of interest due
on Jan. l." said Mr.. Peck. 1.-The appica-
ton was made after full understanding,
and with the consent of all the interests.
MIR. Magoun's death may have FASTENED the
action a few days. on the day after he
died, L started West, and the action of the
court was at once taken. The general de-
preston in the business world was more
than the system could bear The main line
and some of the branches still aid WELL hut
some OF the acquired lines pulled heavily
upon the receipts. One line alone-the Colo
earnings within year. 1t never did earn
very much. The Atlantic & Pacific line was
one of the greatest factors in the downfall.
The Santa Fe is peculiarly situated. This
Eastern and Western ends of the line earn
big receipts. but there is q vast territory
in between from which there Is practically
nothing gained. Yet this bad land must he
traversed in order to connect the two ends
Many of the branch lines run into hitherto
undeveloped territory. Some Of the latter
did pay well, but with the closing down OF
the mines and with the general depression
their receipts ran down at a frightful
rate. However, all these branch feeders
ought to be kept with the main line; they
all form a perfect system.
lit is yet early to talk of a definite plan
of reorganization. The interests are so
manifold and SO varied that it is difficult
to get them all harmonized. The bond
holders and the creditors will shortly hold
meetings and appoint committees. The
work can rapidly go on. The question OF
priority of interests may cause much trOu-
BILE and considerable sharp litigation. There
are $3.50 10000 Of bonded debt outstanding
OF this amount $15o,000,O00 are held by the
first bondholders and S0,000,000 by the sec
ond. To get these interests and those Of
the various creditors in harmony is a task
of no small magnitude
at seems imperative that the indebted
ness of the company be reduced The road
is undoubtedly good and capable OF paying
dividends on a reduced Indebtedness. This
is one of the biggest cases ever brought
before the courts. The appointment of the
receivers, in my opinion, will have no par
ticular effect on the business, except that
it will stop all building and needless ex-
penditUre OF money, and perhaps that is
a good thing. Business Will go r1gnt along
as usual The headquarters WILL as before,
remain at Topeka To-day a circular was
issued to all the employees and agents Of
the company directing them to continue
be discharged nor will anybody lose any
thing"