Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1893-12-24
THE BOLT FELL.
The Santa Fe System in
Receivers Hands.
What Was Believed to
Be BaSeIeSS RumOr
Was Proved Yesterday to Be a
Disagreeable Fact, 3"
An Outline of the Plan by Which the
Atchison's Troubles May
Be Removed.

LITTLE Rock, Ark, Dec. 23.-The ex-
pected in the railroad world happened
today. The Atchison. Topeka & Santa
Fe and the St. Louis & San Francisco
railroads and all 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. G. Calwell, in cham
bers at 5 80 this evening. The appli-
cation was made by the Union Trust
company of New York, as trustees of
the bondholders OF the Atchison, To-
peka & Santa Fe, and the Mercantile
Trust company of New York, as trus-
tees of the bondholders of the St. Louis
q San Francisco.
The first intimation of decisive ac-
tion was received at O'Clock this after
noon when a special which left St.
Louis at O'Clock this morning arrived
over the Iron Mountain with prominent
railway attorneys and officials on board
who hastened at once to the federal
court house and were soon closeted
with Judge Caldwell. The party in
cluded George +. R. Barrett, clerk of
the United States circuit court Of Kan
sas George H. Peck, general solicitor
of the Atchison, Topeka q Santa Fe;
f. D. Kenna, general solicitor of the
St. Louis & San Francisco; II. 7. Nor
rill, general manager and second vice
president of the Frisco: Charles B.
Alexander and W. W. Green of the
firm of Alexander & Green of New
York, counsel for the Mercantile Trust
company of New York, and W. A. Ross
ing of Topeka, counsel for the Union
| Trust company of New York.
They remained behind closed doors
with Judge Caldwell until $50 when
the order was agreed upon appointing
three receivers for the Santa Fe system.
They are ]. w. Reinhart, president of
the Santa Fe; J. J. McCook, general
counsel for the Santa Fe, and Joseph
G. Wilson, clerk of the United States
district court at Topeka, the latter be-
ing the compromise receiver, the rail-
roads having recommended Reinhart,
McCook and Geo. G.. Nickerson. The
latter is director of the sytem but
was objected to by the complainants.
The receivership met with no resistance
on the part of the railroad companies
and an agreement was quickly reached.
The bills in both cases show the lines
to be heavily involved with maturing
obligations coming on soon and that the
interest due January l could not be
paid and would be foreclosed. In both
cases the complainants' bills went
elaborately into figures and were very
| full and yoluminous,
The bonded indie btedness aggregates
$232. 100000, as follows: $l5O,0O0, 900
first mortgage bonds; $77 100000
class GA" second mortgage bonds;
$5,000,000. class "B," second mortgage
bonds. The interest due on January l
will aggregate nearly $S,000,OO0, and
floating debt of about $5,OO0,00O, max
ing the liabilities about $240 00O, 900.
Reinhart and J. j. McCook, two OF the
receivers. are well known in rail
road circles throughout the country.
The other receiver, Joseph G. Wilson.
has been twice mayor of Topeka and is
considered very level headed man. A
supplementary bill will likely be fled
at Topeka on January 5, which will be
tantamount to foreclosure of the bond
ed Indebtedness in which event the
branch lines which have been sapping
the life blood of the main lines, will be
Topped off.
The order in each of the two cases di-
rects that the receivers be authorized
and directed to take immediate posses
sion of all railroads and prop
critics including S,346 miles of
operated lines and run, manage
and operate them. and execute
authority over the roads, and conduct
systematically their business" The
receivers are ordered to execute each q
bond of $50 900 within the next twenty
days. The order contains ann INDUCTION
requiring the roads to be turned over to
the receivers.
The order contains full directions to
the receivers to employ and discharge
agents and employees and to bring suits
and have authority over the moneys
that come into their hands, to pay the
expenses of operating the property, the
amount due for operating the roads and
for track service, car mileage and taxes.
The order provides that it is made
upon the express condition that legal
debts now due and which were con-
tracted i'll the operation of the road and
including damages and money and
work furnished and done in the con-
struction, repair and equipment of the
roads shall be first lien upon
the property including all liabilities
to the persons or corporations who
may become surety for the company
or endorse or guarantee for it.
The receivers are also required to pay
judgments found against them, which
have not been appealed from and all
payments to receivers to be allowed by
the receivers, 80 that they need not
come into court on every occasion. The
lien created for such claims shall con-