The herald., 1893-12-24
THE EXPECTED HAPPENED.
Receivers Appointed for the
Santa Fe Road.
An Order Made by the Court at
Little Rock.
1t includes the Frisco and All the
Branch Lines.
President j. W. Reinhart, j. j. McCook
and Joseph G. Wilson Placed in
Charge of tho Property.
Wise Step.
BY the Associated Press.

By the Associated Press.
LITTLE Rock, Ark. Dec. 23.-The ex-
pected in the railroad world happened
today. The Atchison, Topeka and Santa
Fe and the St. Louis and San Francisco
railroads and branches. comprising the
Santa Fe proper, have been placed in
the hands Of three receivers, the order
being made by United States Circuit
Judge Fl. @. Caldwell in his chamoers
at s 80 this evening.
The application was made by the
Union Trust company of New York,
trustees CT the bondholders of the Atch-
ison, Topeka and Santa Fe, and the
Mercantile Trust company OF New York,
trustees of the bondholders Of the st.
Louis and San Francisco.
DECISIVE ACTION.
The first intimation OF decisive action
was received at o'clock this afternoon,
when special train which left St. Louis
at 2 O'Clock this morning, arrived over
the Iron Mountain road, with prom
inent railway attorneys and officials on
board, who hastened at once to the fed
eral court house and were soon closeted
with Judge Caldwell. The party in
cluded George f. Sharitt, clerk of the
United States circuit court of Kansas;
George III. Peck, genetal solicitor of the
Atchison, Topeka and Santa Fe; E. ID.
Kenna, general solicitor of the St. Louis
and San Francisco; H. L. Morrill,, gem
eral manager and second vice-president
OF the '' Frisco" Charles b. Alexander
and w. w. Green of New York, counsel
for the Mercantile Trust company OF
&c
peka, counsel for the Union Trust COM
pany OF New York. They remained be-
hind closed doors with Judge Caldwell
until $50, when an order was agreed
upon. appointing three receivers for the
Santa Fe system.
THE RECEIVERS.
The receivers are: j. w. Reinhart,
president of the Santa Fe; J. j. McCook,
general counsel for the Santa Fe, and
Joseph @. Wilson, clerk of the United
States district court at Topeka, the latter
being compromise receiver, the rail-
roads having recommended Reinhart,
McCook and George @. Nickerson, the
latter being q director of the eystem. but
was objected to by the complainants.
The receiverehip met with no resist
ance on the part of the railroad compa-
MES, and an agreement was quickly
reached.
BILLS OF COMPLAINT.
The bills in both cases show that
these lines are heavily involved with
maturing obligations coming on coon,
and the interest due January 1st could
not be paid and would be foreclosed.
In both cases eomplainants' bills went
elaborately into figures, and were very
full and voluminous. The bonded in
debtedness aggregates 1892 ,000, 900, as
follows: $l50,000, ,0c0, first mortgage
bonds; $4,000. 900. class A, second
mortgage bonds; 100000 class b,
second mortgage bonds. The interest,
due January 1st, will aggregate nearly
/ 5000 900. and the floating debt about
| $5,U00.000.
j. w. Reinhart and ]. ]. McCook,
two of the receivers, are we'll known in
railroad 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 January 5th, which will
be tantamount to foreclosure of the
bonded indebtedness, in which event the
branch lines which have been eapping
the life blood of the main lines, will be
Topped off.
RECEIVERS INSTRUCTIONS.
The order in each of the two cases di-
rects that the receivers be authorized
and directed to take immediate posses
sion OF all the railroad and properties
(including 8346 miles of operated lines)
and run, manage and operate them, and
execute the authority and franchise of
the roads and conduct systematically
their business"
The receivers are ordered to execute
each bond for $780, 900 within the next
20 days, and the order contains an in
junction requiring that the roads be
turned over to the receivers. The order
contains full directions to the receivers
to employ agents and employees and
bring suits and have authority over
moneys that come into their hands, bay
expenses for operating the property, the
amount due for operating the roads,
and track service, car mileage and taxes,
and the order provides and is made
upon express condition, that all legal
debts now due and which were con-
tracted in the operation OF the road, and
Including damages and money and work
furnished and done in construction, re-
pair and equipment of the roads, shall
be first lien upon the property, includ-
ing all liabilities to persons or corpora
tions who may become surety for the
company or endorse or guarantee for it
JUDGMENTS TO BE PAID.
The receivers are alao required to pay
the Judgments found against them,
which have not been appealed from,
and all payments Of the receivers to be
allowed by the receivers, SO they need
not come into court on every occasion
The lien created for such claims shall
continue until vacated by order of the
court, on notice of the persons inter
ested.
The complainants are required to
prosecute the euit to final decree with
out delay, otherwise the court will dis
charge the receivers.
The party left on the cannon ball train