The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-01-05
THE ATCHISON'S TROUBLES.
CAUSES THzr LED TO IHE <P-
pom TMENr OF RECEITERS.

nsssrs. R.ishsrt. MeCooh, sra wII.on A.
swer the EssiIsh CritIes-They Ten OF the
| Conferences OF the Directors on Monday.
Dec. Is-No omciai Bnsi. Tor Current Re-
ports About the Reorganization scheme.
Receivers j. W. Reinhart, ]. J. McCook. and
]. C. Wilson OF the Atchison, Topeka and Santa
rs Railroad Comp any yesterday m ade the fol-
lowing statement Of the events which led to
their appointment:
Gable dispatches published by the Ameri-
can press indicate that some English newspa-
pers have given currency recently to certain
Inaccurate staten ents. telegraphed originally
from Chicago and purportinR to have been
made by Mr.. George X. Ieck. the general So
llcltor OF the Atchlson system. and Mr.. Wilson.
recently appointed one Of the receivers
OF the property OF tho company. In
these alleged extracts from interviews.
these gentlemen are represented as say
ing that the Atchison system was known
to be insolvent az early as last August and
that legal papers were then drawn in antici-
patton Of . reesivership 10th these gentle
men declare that the statements attributed to
them are false and without foundation.
The nnan clal condition Of the Atobison Com
panY was clearly and accurately given In the
statement OF the directors issued Dec. 23
showing that Its Western accounts were
normal, which Is confirmed by the fact that the
pay rolls for November. which aggregate
monthly for the entire system OF 8. $40 miles OF
railroad about 81 100000. we're practically not
delayed, except during a few days in which
the receivership matters were under discus
sion. Tho payment OF these rolls is now about
-" The condition Of the system. including the
st. Louis and san Francisco, Atlantic and Ia
ciilo, Colorado Midland, and all other auxiliary
companies, is as given in the directory state:
and time loans and notes. with collateral duo
from December. 1898. TO June. 1894, So, 800.
obligations due Jan. !, S3,YOO.OOO since the
appoint M emit OF receivers the loans have been
continued and tho collateral held intact for the
There has been no statement given to the
public Of any kind from official sources sug;
costing financial reorganization, SO that all
reports published in America and Europe OF
proposed assessment on stock and the return
Of second MORTGAGE bonds to income bonds.
or OF the disintegration Of tho system. have no
Upon the return OF President lie Inhart from
Europe. he was confident of the ability Of the
company to pay It's interest s on }an and
itation. The condition Of the Negotiations
was such that he saw no reason to change his
views until the afternoon Of Monday. Dec n.
company that Chairman Magoun could not
PP9Ss;sbly survive more than t,d fey t1or days;
from adyices received from abroad Mr.;
could not raise the money necessary to pass
the frst Of }snusr{, although eneoqr rt
" ne mea I that tho sum feaued msRt
be provided Tho Officers OF the com any then
found themselves confronted by this situation;
amount required to pay the January interest
could be secured and the expected death OF
tied condition OF the market both here and
abroad. 1t appeared to be altogether probable
would fall. thus depreciatinR the value OF the
Even ii the money required could have been
tsrest, the loans might have been pressed to
default, the integrity OF the system and the
Of creditors would have been endangered. and
the money thus borrowed specially Tor the pay
Under the circumstances meeting Of the
directors was convened. and 1t was deter
mined to be their duty to take such steps IS
might best conserve the interests of the COM
creditors, and to prevent tho dislntegTa-
those whose Interests It would bs to preserve
ate S on MSndsy beSp II when the Sasrs o.
the, company became satisfied that prompt
action was necessary to project az Interests.
Tuesday. Dec. 10. counsel representing the
Atchson and St Louis and San Francisco
panies. trustees OF the IN ortgages covering all
the properties Of the railroad companies. be-
which Viii .er &c compioted on ThursdSy' Dec. q.
NIT the papers TO Judge Caldwell at Little
Rock. Prior to Tuesday no suggestions were
made nor papers drawn up nor steps OF any
kind taken toward the appointment OF re-
Under ordinary circumstances II would not
be important to state these facts. but the mis-
coupled with the names Of officers Of the
Atchison system, render It desirable that the
exact facts should be stated and known"