Morning journal and courier., 1893-12-25
from net earning for interest require

from net earning for interest require
ments.
Under these circumstances, 1t becomes
the duty of the directors to take such steps
as may best conserve and protect the In
terests of the companies, their bond and
stock holders, and creditors, and prevent
the disintegration of the railroad system.
In view of the comparatively small and
temporary relief required in the present
emergency, considering the magnitude of
the railway system involved, its earning
power and resources, satisfactory physical
condition and working organic alton, which
relief cannot speedily be secured In the
present depressed condition of financial af-
fairs generally, the directors believe that
the protection of the courts should be in
voked, and the executive and legal officers
of the several companies have been author
lied and instructed not to resist appliea-
ton for receivers, but to make answers
setting forth the facts and admitting the
situation and temporary embarrassment of
the companies.
The Atchison system as a whole, includ-
ing the st. Louis and San Francisco rail-
way and all other auxiliary lines (compris-
ing 9,345 miles of railroad), is amply able,
even under the present adverse conditions,
| to earn a safe balance above its fixed charges
| If relieved from floating debt, which is not
| greater at this time than eighteen months
| ago. The changed financial conditions and
lower prices of securities owned by the
| companies and used az collateral has
brought about the situation now reported.
The obligations of the companies are as
follows:
| Time notes and loans on COL
lateral, due December, 1893,
| Notes and loans on collateral
| on call. Observation-Disclosures. 100000
| Total notes and loans So, 800 900
Coupon Interest and other fixed obliga-
lions, due January ], 1891, proximo.. 1900, 600
The western accounts are about normal,
with remittanees for interest payments
turned back to provide for November pay
| rolls and other current requirements.
| With ordinary financial conditions pre-
vailing In America and Europe, the market
| values of the securities owned by the COM
| pantes, ard used as collateral, is about
| equal to the entire amount of the above
obligations.
The directors will promptly prepare
and submit to the security holders and
proval, plans for the relief from the exist
ing embarrassment, which should be con-
sidered as temporary. By order of the
| directors. J. W. RE1NHART, president
In addition to the above President Rein
hart said last evening that up to last Mon
day the management was confident of Sc
| curing the necessary funds to carry the
company over January 1. On that day it
became plain that Mr.. Magoun would not
survive and Ii was believed that his death
would be followed by renewed attacks
upon the securities of the company that
would lower the prices of his collateral
pledged to secure the floating debt and com
pei the company to use part of the money
practically promised to protect those loans.
As this would msnifestly be unfair to those
who had undertaken to help thu company
over the first of the year, since it would
bring them into a situation that could not
| be remedied by their action, it was de
| cided to take the course set forth by the
| board.
Mr.. Reinhart said further that his state
ment made upon his arrival from Europe
that the interest due ON January would
be paid, was entirely warranted by the
state of negotiations at that time, and that
he did not assert, as has been reported
that the money for that purpose was in
hand. In the usual course of business ii
has not been the practice of the company
to have all the money to meet interest In
bank at the east earlier than a week before
payment is required, funds being remltted
from the west