The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-08-10

Of Mr. Joseph W. Reinhart and Mr.. ]. J.
McCook rs. receivers Of said company.
When these parties were selected for
this great trust it was generally believed
that both, one as president Of the com
pany and the other as its chief legal ad-
wiser and director of long standing,
had been most loyal and true to our in
terests. We assume that you were large
ly Influenced by this consideration in
yielding to their appointment AT the
time foreclosure proceedings were begun,
the stockholders were not apprehensive
of any very serious financial entangle-
meuts. This feeling of confidence on
their part was due in a large measure to
the report made by the management for
the fiscal year ending June 81, 1898,
which disclOses net surplus Of $l,753,-
$50. SO, aud was subsequently strengthen
ed by a statement made to US December
81 1898, over Air. Reinharrs own sigma
ture, wherein he assures US that the en-
tire floating debt Of the company did not
then exceed SO, 100000. that the treasury
held securities more than sufficient to
pay the same, and that the cOmpany's
embarrassment was only temporary To
quote his own words, sfne Atchison sys-
tenn as a whole, including the st. Louis &
San Francisco railway aud all other aux
iliary lines comprising 9,345 miles Of
railroad), Is amply able, even under the
present adverse conditions, to earn a safe
balance above its fixed charges"
satisfactory and as not in the least
leopardizing the interests Of the stock
holders. Subsequent events have shown,
however, that grossly irregular methods
had apparently been employed in the
keeping of the company's accounts and
that its actual financial condition had
been misrepresented, in fact what ap-
pears to have been course Of system matte
deception has been pursued, and the rec
ords have been SO artfully manipulated
as 10 present a surplus, when, in truth,
deficiency seems to have existed. The
large favorable balances heretofore ex-
hiblted now appear 10 resolve themselves
into myth, and we fear that the COM
pany's affairs may be such as TO threaten
the gravest consequences. If the res
possibility for all this is shared by
Messrs. keinhart and McGOOk their re-
tention as receivers under the circum-
stances would, i'll onr opinion, operate as
d menace TO the interests we represent.
The precise nature and extent Of the
abuses we have not had the opportunity
to ascertain. There ought TO be absolutely
no secrecy il the business and affairs of
this company. and especially SO far as
the stockholders are concerned. 1t IS
needless to say that our efforts have been
very much obstructed by this action In
our opinion the men charged with the
duty and responsibility OF controlling
this great property should be free from
every suspicion of wrong doing and be
entirely discOnne cted with the cOmpauy'5
past management
We are Satisfied that it is your aim to
execute the trust confidcd to you in all
its integrity and to deal justly toward all
interests, and we therefore appeal to yod
to take such action Will lead to the re-
moval of Aessrs. Relnharc and McCOOk
as receivers. and the substitution Of other
persons in their place who VIII be dis
posed TO conserve our interests, and in
whose impartlality and fairness we can
repose implicit faith and confidence.
Hoping for favorable reply we re-
spectfully, THEODORE w MYERS,
Chairman Atchison Protective Reorgani-
zdtiOn committed
The committees report and Alr. Rein
hart's reply appear on the second page
The affairs Of the AtchisOn, Topeka s
Santa Fe railway are getting pretty
good airing. 1t is the first they have had
since the Strong management was ousted
and the company reOrganized- The Rein
hart management has not yet taken ad-
vantage of chance to prove that it is
all it has claimed 10 be.
The World announces Mr. Reinhart
ready to resign the presidency and re-
ceivership as soon as he has made his
explanation to the general reorganiza-
tion committee regarding the charges
that the company is seven million dol
lars short The Santa Fe officers turned
up their noses at this report when Mr..
Little first made it. but now it has devel-
oped into a pretty large sized scandal re-
hecting On the management of the com
pany since LIr. Reinhart became presi-
dent.