The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-01-05
AFFAIRS OF THE ATcHIsoN.
The Receivers State the Facts il
the Case.

New York, Jan. Am official state
ment has been issued by the receivers
of the Atchison company declaring it
is false that Solicitor Peck, and Wilson,
one Of the receivers, said the Atchison
was known to be insolvent last August
and papers were drawn in anticipation
of a receivership. The statement says
THE financial condition of the company
was clearly and accurately given in
the statement of the directors issued
Dec. 90, showing its western accounts
were normal. The condition of the
system, including the st. Louis, San
Francisco, Atlantic & Pacific, Color
ado Midland, and all other auxiliary
companies, is as given in the directors
statement of Dec. 81, which shows the
total demand and time loans and notes
with collateral due from December,
1893, to June, 1894 to be $6,300,O0O and
the total coupon interest and other
fixed obligations due January 1, to be
SO. COG. 900. Since the appointment of
the receivers the loans have been con-
tinued, and the collateral held intact
for the company. This practically
leaves the Atchison for itself and all
auxiliaries, in addition to the floating
debt above stated, owing but 100000,
being the aggregate amount OF the IN
terest due on January l, 1894
Upon the return of President Rein
hart from Europe, he was confident of
the ability of the company to pay the
interest on January LIST, and gave eX-
preston to this belief without hesita-
ton. The condition of the negotiations
was such 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 pos
| sibIy survive more than a few days
This fact added many complications to
| the situation and upon the same Cay
| from advices received from abroad,
Reinhart became satisfied the com
Ipany could not raise the money neces-
sary to pay on the first of January.
| A meeting of the directors was con-
lvened and it was determined to be
| their duty to take such steps as might
best conserve the interests of the com
Ipany, the stockholders, the bond
holders and the creditors, and prevent
a diSintegration Of the system, and not
| to oppose the appointment of receivers
liz asked for by those whose interests
| it would be to preserve and protect
| the property as whole.
| On Monday, Dec. Is, the officers Of
the company became satisfied the re-
ownership was necessary to protect
the interests of the road. On the after
noon of the following day counsel re
presenting the Atchison &. st. Louis
| and San Francisco companies and
counsel of the trust companies, trus
| tees, and mortgages covering all The
properties of the railroad company, be
gan the preparation of the necessary
papers, which were completed on Dec
III, on which day counsel left for the
west to submit the papers to Judge
Caldwell, at Little Rock. Prior t.
Tuesday no suggestions were made
nor papers drawn up, or steps of any
kind taken toward the appointment O
receivers.
Under ordinary circumstances i
would not be important to state thes,
facts. but Misrepresentation which
had beeen cabled. also coupled Will
the names of officers of the road
rendered it desirable the entire fact
be stated and known.
This statement is signed by the re
lceivers.