The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-01-05
THE MAIN CAUSE.
MagOun's Death Wrecked
the AtChisOn.
TOLD BY THE RECEIVERS.
Why 1t Is Necessary to Publish
the Truth.
TOLD BY THE RECEIVERS
TOO MANY WILD STORIES TOLD.
Up to December Is Reinhart Be-
lieved the Company Would
Meet Its Obligations.

NEW YORK, Jan. Am official state
ment has been issued by the receivers of
the Atchson Company declaring it false
one of the receivers, said that the Atchi-
son was known to be insOlvent last
August and that papers were drawn then
in anticipation of receivershlp. The
statement says the financial condition of
the company was clearly and accurately
given in the statement of the directors is
sued on December %. showing its Western
accounts were normal. The condition of
the system, including the st. Louis and
San Francisco. Atlantic and Pacific,
Colorado Midland and all other auxiliary
companies, is as given in the directors
statement of December %, which shows
that the total demand and time loans and
notes with collateral due from December,
1898, to June. 1894, were Sc, 100000, and
the total coupon interest and other fixed
obligations due January l were 1890, 600.
Since the appointment of the receivers
the loans have been continued and COL
lateral held intact for the company. This
practically leaves the Atchison, for itself
and all its auXiliaries, in addition to the
floating debt above stated, owing but
$780, coo, being the aggregate amount of
interest due on January /, 1894.
Upon the return OF President Reinhart
from Europe he was confident of the abil-
ity OF the company to pay the interest due
on January l, and gave expression to this
belief without hesitation. The condition
of the negotiations was such that he saw
no reason 10 change his views until the
afternoon of December IS, when it became
known to the officers of the company that
Chairman MagOun could not possibly sur
vive more than a few days. This fact
added too many complications to the stua-
ton, and upon the same day, from advices
received from abroad, Reinhart became
satisfied that the company could not raise
the money necessary to pass the first of
January. A meeting Of the directors was
then conveyed and it was determined to
be their duty to take such steps as might
best conserve the interests of the COM
pany. its stockholders, bondholders and
creditors, and prevent the disintegration of
the system, and it was also determined not
to oppose the appointment of receivers, If
asked for by those whose interests 1t would
be to preserve and protect the property as
the whole.
On Monday, December Is. the officers of
the company became satisfied that re-
ceivership was necessary TO protect the
interests Of the road. On the afternoon of
the following day, December 10, counsel
for the Atchison and ST. Louis and San
Francisco companies and counsel for the
trust companies, the trustees mortgages
covering all the properties of the railroad
companies. began the preparation of the
necessary papers, which was completed on
December 81, on which day counsel left
for the West to submit the papers to Judge
Caldwell at Little Rock.
Prior TO that day no suggestion was
made. nor papers drawn up. or steps of
any kind taken toward the appointment
of receivers. Under ordinary circum-
stances it would not be important to state
these facts, but the misrepresen tations
that have been cabled abroad. also coupled
with the names of the officers of the road
has rendered it desirable that the entire
facts be stated and known.
This statement is signed by j. W. Rein
hart, j. j. McCook and j. G. Wilson, re-
oaivars