St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-01-05
CALLS DOWN THE ENGLISH
RECEiVERS or The SkNTA re RAIL
Road SYSTEM
MAKE An OFFICIAL STATEMENT

Which Gives the Lie to Reports
Circulated Across the Water
in Regard to the System Being
Known to Be Insolvent as Early
as Last August.
New YORK. Jan. 1.-The following
official statement is issued by the re-
ceivers of the Atchison, Topeka & Santa
Fe Railroad company: Dispatches in
dictate that some English newspapers
have given currency recently 10 certain
inaccurate statements telegraphed from
Chicago and purporting 10 nave been
made by George Peck, the general
solicitor of the Atchisoa system,
and Mr.. Wilson. recently appointed
one of the receivers of the property of
the company. In these alleged extracts
from interviews these gentlemen are
reported as saying that the AtchiSon
was known 10 ue insoivent as early as
last August, and legal papers were
drawn in anticipation of a receivership.
Both these gentlemen declare that tine
alleged statements attributed TO them
are false and without foundation. The
financial condition of the company
was clearly and accurately given
IN the statement of the di
rectorS, issued Dec. 2S, show
ing that It's Western accounts
were normal. The condition of the
system. including the st. Louis and San
Francisco, Atlantic & Pacific, Colorado
nj
is as given in the directors statement
of Dec. %, which shows. total demand
and time loans and notes with collateral
due from December. 1898, TO June, 1894,
S6,3JO.O0O. and total coupon interest and
other fixed obligations due Jan. l, 50, 900,-
600. Since the appointment of the re-
ceivers the loans have been continued,
and the collateral held intact for the
company. This practically leaves the
Atchison company for itself and all its
auXllaries. in addition to the floating
debt above stated, owing but S3.0J0,010.
being the aggregate amount of interest
due Jan. !, 1891. Upon the return of
President Remnant from Europe he
was confident OF the ability of the COM
pany 10 pay its interest on Jan. l. and
gave expression TO this belief without
hesitation. The condition OF the ne
ROTATIONS was such that he saw
10 reason To change his views
until the afternoon of Monday,
the 18th day Of December, when
it became known TO the Off
GERS of the company that Chairman Ma
goun could hot possibly survive more
than a rev days. This fact added many
complications to the situation, and upon
81 = n u y II
abroad. Mr.. Reinhart became satisfied
that the company could not raise the
money necessary to pass the 1St of
January. \ meeting of the directors
was convened. and it was determined
to be their duty to take such steps
as might best serve the interests
of the company. its stock holders.
bond holders and creditors, and TO pre-
vent the disintegration of the system,
and not 10 oppose the appointment of
receivers if asked for by those interests
1t would be to preserve ana protect the
property as a whole. 1t was then Mon
day, Jan. Is, when the officers Of the
company became satisfied that the re-
Ownership was necessary to protect the
interests of the road. On the afternoon
Of the following day, Jan. 10, counsel
representing the Atchison and st. louis
Il San Francisco companies and the
counsel Of the trust companies, trustees
of the mortgages covering all the prop
critics of the railroad companies, began
the preparation of the necessary papers,
which were completed on Thursday.
Dec. 81, on which day counsel left for
the West TO submit the papers to Judge
Caldwell at Little Rock. Prior to
Tuesday no suggestions were made. nor
papers drawn up or steps of any kind
taken toward the appointment of re-
ceiycrS. Under ordinary circumstances
it would not be important to state
these facts, but the Misrepresentation
that have been cabled, also coupled
with tie names of officers of the road,
rendered it desirable that the entire
facts should be stated and known.