The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-02-23
To- take IT AWAY
German BondhOIders of the
Frisco Road
Object to Receivers Wilson,
Reinhart and McC0Ok.
Ask Fora Separate Rec6ivership
Today.
SANTA FE TO FIGHT
SANTA FE TO FIGHT
The Appointment of Separate
Receivers.
Geo. R. Peck is the Counsel for
the Receivers.

ST. LOUIS, Feb. 23.-Before United
States Circuit Judge Caldwell this morn
ing, application was made for permis-
sion to remove so much of the Atchison,
Topeka 81 Santa Fe receivership as re-
lates to the ST. Louis s. San Fran
cisco, to the state courts. where
the appointment of receivers other than
those now in power, viii be sought for by
the St Louis s. San Francisco. ArOu-
ment was begun but was not completed
when the noon recess was taken.
The Atchison receivers viii resist the
effort to separate the two systems.
The attorneys present in the case are
E. wv. Sheldon and George Zabriski of
New 0rk, and John wv. Noble of st.
Louis for the United States Trust com
dany; W. w. Green of New York and s..
i. McKeighan of ST. Louis for the Mer-
camille Trust company; j. X. DOsEasOs of
New York and John Mcclure Of 'Little
Rock for the AtchisOn stockholders;
George Il. Peck. counsel for the receiv-
ers, and =. d. Kenna for the St Louis
and San Francisco, also Receivers Rein
hart, McCook and Wilson.
The movement is on the part Of the
German bCndhOlders of the Frisco, rep
resented by the United States Trust com
pany. trustee for the Frisco general
mortgage bOndhOlders. Mr.. E- M. Shell
don Of New York presented the applica-
r
trustee Of the Frisco consolidated mort
cages, executed June Ill, 1891, upon
whose application the receivers were app
pointed Decembe "a, 1898, was repre-
scented by Mr.. w. w. Green of N ew York
and udge j. u. Mckeighan Of ST. Louis.
Mr.. George r.. Peck appeared for the
Atehison-7 Frisco receivers and Mr.. E. D.
kenna, the Frisco company
The petition Of the Jnited States Trust
Co sets forth that there remains ont
standing and unpaid SI,SI8.O00 Of 6 per
cent Frisco general mortgage bonds and
81, ,293, 600 of . per cent nouds, the for
mer issued June i. 1882, and the latter
July i 1881 The interest ia these
bonds, amounting to @541, 1913. due JAM
uary i, 1894, remains unpaid, although
the trustee alleges that the Frisco net
earnings for the latter half of 1893 were
in excess of the sum needed to pay such
interest.
The trustee cites the allegation Of the
Atchison to the effect that the Frisco is
indebted to it in the sum Of @1s560. .977.77
on account of advances, and contends
that the Interests for the security holders
for the two companies are adverse. and
that a majority of the holders of the
Frisco general mortgage bonds request
ed the trustee to proceed to foreclosure
and to secure the appointment Of other
receivers.
The Frisco and the Atchison are guar
antors for the interest of the consolidated
a per cent bonds of the Atlantic & Pacific
and they are jointly, but not equally
guarantors of other obligations.
There are questions of differences on
the interchange of traffic. the appor-
tionment of charges for transportation
and use of equipment between the Atch-
ison and Frisco, which the trustee
alleges can not be impartially de-
termined by the receivers representing
both companies. and the Frisco general
mortgage bondholders regard the inter
est Of the Atchison to be inimical and
prejudicial to those of the Frisco gen
eral mortgage bondhOlders.
They therefore ask for leave TO sue the
receivers in the state court for forecl0s-
ure and appointment of receivers under
state court Jurisdiction. and that if the
property is not surrendered that the
present receivers may be removed and
dfsinterested parties appointed