The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-12-26
THE SANTA FE RECEIvERSHIP
DIRECTORS BRLIEVB THE ROAD VILE
BE FREED IN a FEW MONTH";

| Causes That lee 60 Judge Csidwsirs Ae-
| uoa Explained a Meeting OF the Re-
| esiver- set for "wednesday IN Nsv Horh
| -AneilIsry Appointments Beins Prepared
sr LOUIS. Dec. 25-The Atchison. Topeka
and Santa Fe and the st. Louis and San Fran.
cisco Railroad officials who. on Saturday
| last secured from Judge Caldwell at
Little Rock. Ark the order for the
appointment Of receiver for the
roads. returned to this city yesterday morning
| over the Iron Mountain. + d. Kenna Cen
eral Attorney OF the st Louis and San Fran
| cisco Railway system. consented to give the
United Press tho details in the matter.
1T was absolutely impossible for us to an
nounce TO tho public our Intention OF applying
for a receiver" he eaid. but now there Is
nothing to prevent the matter being given
the fullest publicity. Had We allowed the
knowledge to creep out beforehand much
OF our stock and securities would have
been thrown on the market In advance Of such
action, aud would In consequence have de-
preciated much in value. Inability TO
meet our obligations was the primary
cause for tho move on the part oil
the roads. The pay roll was about ten
days behind. The interest on January bonds
could not be paid. and the roads were away
behind in the payment OF their taxes. In add
ton to this. the roads were totally unable to
meet their floating debts"
when was 1t definitely decided TO make the
application p
Last Tuesday or Wednesday. Until then
think II was generally expected that the roads
would be able to pull through"
Judge Caldwelrs Jurisdiction covers prac-
tically all the territory traversed by the two
systems. and he was manifestly the
proper Judge to apply to. Both COM
pnnies have collateral which. in more
prosperous times. would he moro than
sufficient to meet oil demsnds Just now.
however. It could not be disposed Of. except at
great loss Had not a receiver been appoint
ed sale OF some 81. 900. 900 worth OF c0llate-
raj would have been forced. at a great sac
thrown upon the market in its present
unstable condition , small panic would have
i Sssn n a. which bo w SS have Gad ats
other stocks on the market The interests of
the public would be best served By the action
the courts In the public interest.
:. The directors. of the company believe that
they will be able to devise a plan ~
which the company can be taken out
So. nToise any ha assessment Prn stock
bonds, but will be formulated by use Of col
lateral the company has as basis for col
The petitions and orders in both cases will
the Federal Court at Topeka. and the Frisco
documents In the United States Court
here. General Manager. Morrill, Of the
for November 6 will be sent out to the
Frisco employees from here to- morrow and TO
the Atchison employees later In the week from
made until the middle OF the following month.
40 it is evident that they have only been de-
layed about ten days BY the financial depres-
sion"
The principal cause OF the Atchison and |
Frisco collapse Is said to be the failure of the
Atlantic and Pacific to pay over Sl5OOO.OOO
that 1t owes.
T. Wilson OF the Santa Fe system passed |
through here this morning on his way to 70.
peka. He will go to New York on Wednesday |
to meet the other receivers. lie believes that |
been appointed general agent for tho receiv-
ers. st. Louis banks were arranged with for |
100000 to pay Frisco employees whose |
wages weTs In arrears. and they will be paid |
paid by Jan. 3. Mr.. Wilson will have charge |
of the Topeka and Kansas business especially.
lie will resign MS Clerk OF the United states
District Court OF Kansas as soon as possible.
Caldwell OF the United States Circuit Court |
this afternoon gave out additional particulars
relative to the, santa Fc and Frisco receiver
now preparing the papers for ancillary receiv- |
erships in all the districts OF this circuit not
covered by the orders made Saturday. These |
his afternoon or to- M orrow II Is understood |
that Judge j. IL. johnson OF Topeka will be |
appointed special master in the Santa Fe case.
and that Col George ID. Reynolds OF st. Louis |
Col Reynolds is the present United States Dis |
trict Attorney for the Eastern district Of Mis- |
souri,. Judge johnson Is the Federal circuit |
Court Judge az Topeka. Mr.. Olney. the United |
torney Of the Santa Fe Hallway until his elec- |
ton TO the Government office.