Morning journal and courier., 1894-01-05
srArEmxrr OF RKoEIvKRs.

oA - - nuA0NA OE AnosA .ocs
 A History Of the Financial DiAcuIty
 of the Atchison, Topeka and Sants
 Fe Railroad is Given.
 NEW YoRK, Jan. 4-The following of6.
 cial statement is issued by the receivers of
 the Atchison, Topeka and Santa Fs rail-
 road:
 "Csble dispatches published by American
 newspapers indicate that some Euglish
 newspapers have given recently. currency
 to certain inaccuracies purporting to have
 been made by Mir. George R. Peck, the
 general solicitor of the Atohison system, and Mr. Wilson, recently appointed one of
 the receivers of the property of the com pany. In these alleged extracts from in- tsrvisws these gentlemen are represented e saying that the Atchison system was known to be insolvent = early e last Au- gust, and that legal pspsrs were thsn drawn In anticipation of . rscslvership. Both these gentlemen declare that the statements attributed to them are falss and without foundation.
 The financial condition of the Atahison was clearly and accurately given in the statement of the directors issued Dsesm- ber 25. showing that its western accounts were normal, which is confirmed by the fact that the payrolls for November, which aggregate monthly for the entire syatsm of g, 345 miles of railroad about q, 500, 900, were practically not delayed, except dur ing few days in which the reosivership matters were under discussion. The pay ment of thsss rolls Is now about com pleted.
 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 di- reotors' statement of December 23, which shows total demand and time loans due from December, 1898, to June, 1894, $6,- 800, 900, and total coupon interest and other fixed obligations due January 1, in- stant, s, ,400,0 900. This practically leaves the Atohison company for itself and all It's suxiliariss in addition to floating debt ow- ing but $500, 900, being the aggregate amount of interest due January 1, 1894. There has been no statement given to the public of any kind from official sources suggesting financial reorganization.
 Upon the return of President Rsinhart from Europe he was confident of the ability of the company to pay its interest on January l, and gave expression to tbis belief without hesitation. The condition of the negotiations was such that he saw no reason to change his views until the afternoon of Monday, December IS, when 1t became known to the officers that Chairman Msgown could not possibly survive more than few days. This fact added many to the situation and upon the same day, from advices received nr Datn ovk a~z that the company could not raise the money necessary to pses the first of Janu- ary although encouragement was still held out by those largely interested in the com psny that the sum required might be pro- vided. The officers or the company then found themselves confronted by this situ- ation:
 With uncertainty ss to whether the full amount required to pay the January inter est could be secured, and the expected death of the chairman in the then unset tied condition of the market, both here and abroad, it appeared to be altogether prob able that the prices of the company's se- curities would fall, thus depreciating the value of the bonds held as collateral for the floating debt. Even If the money re- quired could have been borrowed by the company and paid out as interest, the loans might have been pressed to default, the integrity of the system and the inter ssts of the stockholders and all classes of creditors would have been endangered and the money thus borrowed specially for the payment of interest could not be returned.
 A meeting was convened and 1t was de- to be their duty to take such steps as might best conserve the interests of the company, its stockholders, bond holders and creditors, and to prevent the of the system, and to op- pose the appointment of receivers If asked for by those whose interests 1t would be to preserve and protect the property ss a whole. It was late on Monday, December IS, when the officers became satisfied that prompt action was necessary to protect all Interests.
 On the afternoon of the following day, Tuesday, December 19, counsel represent ing the Atchison and St. Louis and San Francisco and the counsel of the trust trustees of the mortgages oov- ering the properties began the preparation of the necessary papers which were com plsted on Thursdsy, December 2l. on which day counsel left for the west to submit the papers to Judge Caldwell at Little Rock. Prior to Tuesday no suggestions were made, nor papers drawn upon or eteps of any kind taken toward the appointment of receivers. Under ordinary circumstances 1t would not be important to state these facts, but the that have been oabled abroad, coupled with the names of officers of the Atchison system, render 1t desirable that the exact facts should be stated.
 Signed: J. ". RsInhart, J. J. AcCook,