The herald., 1894-01-05
CURRENT RAILROAD GOSSIP
The AtchisOn Receivers Publish
a Statement.
They Report the COmpany's Finances
in Good Condition.
Ohieers OF the Road Exonerated from
the Blame OF GivinG Out False
Reports-The Union Pa
cific's Latest Move.
Bs sAs Associated Press.

By the Associated Press
Nav ToRK, Jan. Am official state
ment is issued by the receivers of the
Atchison company, declaring it fnIse
that General Solicitor Peck and Wilson.
one of the receivers, said the Atchison
was known to be insolvent last August,
and that papers were drawn in anticips.-
tion offs recelvsrahip. The statement
says:
The financial condition OF the COM
pany was clearly and accurately given
in the statement of the directors issued
December 23d, showing it's western &C.
counts were normal. The condition OF
the system, including the st. Louis and
San Francisco, the Atlantic and Pacific,
the Colorado Midland and all other aux
Hilary companies is as given in the di-
rectors' statement December 23d, which
shows a total of demand and time loans
and notes. with collateral due from De-
cembsr, 1898, to June, 1894. of $780,
600, and total of coupon interest and
other fixed obligations due January 1st,
Of S3,900,000.
Since the appointments Of the receivers
the loans have been continued and the
collateral held intact for the company.
This practically leaves the Atchison, for
itself and all it's auxiliaries, in addition
to the floating debt above stated, owing
but $3,900,000, being the aggregate
amount of the interest due January l.,
1894.
Upon the return OF President Reinhart
from Europe he was confident OF the
ability of the company to pay the inter-
est due January 1st, and gave expression
to this belief without hesitation. The
condition of the negotiations was such
that he saw no reason to change his
views until the afternoon of the 18th OF
December, when 1t became known to the
officers OF the company that Chairman
Magoun could not possibly fessssiihh snryiye
more than few days. This fact added
many complications to the situation,
and upon the came day, from advices
received from abroad, Reinhart became
satisfied the company could not raise
the money necessary to pass the 1st of
January. A meeting OF the directors
was convened and it was determined to
be duty to take such steps as might
best conserve the interests of the COM
pany, stockholders, bondholders and
creditors, and prevent the disintegra-
tion of the system, and not oppose
the appointment OF receivers, il asked
for by those whose interests it would be
to preserve and protect the property as
q whole.
1t was on Monday, December 18th,
when the officers OF the company be-
came satisfied that a receivership was
necessary to protect the interests of the
road On the afternoon of the following
day, December 10th, counsel represent
ing the Atehison and the st. Louis and
San Francisco companies, and counsel
of the trust companies, trustees of the
mortgages covering ali the properties Of
the railroad company. began the prepa-
ration of the necessary papers, which
were completed December 21st, on
which day council left for the west to
submit the papers to Judge Caldwell at
Little Rock. Prior to Tuesday no sug-
questions y are made nor papers drawn
up, or steps OF any kind taken toward
the appointment OF receivers.
Under ordinary circumstances it would
not be important to state these facts,
but the Misrepresentation have been
cabled, also coupled with the names of
the officers OF the road, and rendered it
desirable that the entire facts be stated
and known.
(Signed) J. w. REINHART.
J. j. McCooK,
j. G. WILSON,
Receivers.