The morning call., 1894-02-24
SEPARATION WANTED.
Application Relating to the Santa
Fe ReceiversIlip.
1t Is Claimed That the St. Louis
and San Francisco Should Be
Operated by Itself.

ST. LOUIS, Feb. 23.-Before United
States Circuit Judge Caldwell this morn
ing application was made for permission
10 remove so much OF the Atchson, To-
peka and Santa Fe recelvership as relates
to the ST. Louis and San Francisco road
TO the State courts, where the appointment
Of receivers other than those now in power
will be sought for the st. Louis and San
Francisco. Argument has begun. The
Atcbison receivers will resist to the Ut
most the effort to separate the two sys-
TENS. The movement is on the part of
the German bondholders of the Frisco,
represented by the United States Trust
Company, trustee for the Frisco general
mortgage bondh olders.
The petition of the United States Trust
Company sets forth that there remains
outstanding S7,S19, 900 per cent Frisco
general mortgage bonds and S12, 293, 600
per cent bonds. The former were is
sued June 1. 1882. and the latter July ],
1881. The interest on these. amounting to
S541, S95. due January l, 1894, remains un-
paid, although the trustee alleges the
Frisc0's net earnings for the latter half of
1888 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 indeb ted to it in the sum
of 81, 500, 977 on account of advances, and
contends the interests of the security
holders Of the two companies s adverse 10
that of the majority Of the holders of tie
Frisco general mortgage bonds and has
requested the trustee to proceed TO the
foreclosure and secure the appointment of
other receivers.
The Frisco and the Atchison are guar
aDtors OF the interest of the consolidated
per cent bonds of the Atlantic and
Pacific and are jointly. but not equally,
guarantors of other obligations. There
are questions of difference on the in ter
changes of traffic. apportionment of charges
for the transportation and use of tie equip
ment between the AtchisOn and the Frisco
which the trustee alleges cannot be i'm
partially determined by the receivers rep
resentlng both companies and the Frisco.
The general mortgage pondholders regard
the interests of the Atchison to be iuimi-
cal and prejudicial to those of the Frisco
general mortgage bondholders They
therefore ask leave to sue the receivers in
the State courts for the foreclosure and
the appointment of receivers under State
court jurisdiction, aud that if the property
is not surrendered the present receivers
may be removed and disinterested parties
appointed.
The arguments by counsel on both sides
consumed the days session and the hear
ing will be resumed tomorrow.
MILWAUKEE, Feb. 23.-The hearing of
the petition of the railway labor unions to
secure modification of Judge Jenkins
Northern Pacific strike order, which was
to be had to-day. was postponed until next
Friday.
CHICAGO, Feb. 23-The Western Pas
senger Association lines have informed
the Atchison that they cannot comply
with the request to continue the sale of
tickets to San Francisco via Barstow and
Los Angeles. Most OF them are willing
to sell tickets reading over the Atchison
all the way to San Francisco. leaving it to
get passengers north to San Francisco any
way II could. The Atchisou has not yet
announced its plan Of action, but the off,
GERS were in session until late this after
noon and 1t is expected they will be heard
from tomorrow in vigorous manner.