The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-14
GRAVE CHARGES MADE.
Accused of Gross Misconduct
in Administering the
Roads Affairs.
COUNTER CLAIMS PREFERRED
1t Is Claimed That a Separate Re-
ceivership Would Greatly Cripple
the Route.

ALBUQUERQUE, N. MEX, Aug. 49,
The Atlantic and Pacific Railroad hearing
for separate receiver before Judge Collier
was renewed this morning.
The first affidavit read by Mr.. Jennings,
attorney for the Atlantic and Pacific
bondholders' committee, was that of Mr..
Francis S. Bangs, chairman of the COM
mittee. The affidavit recited a large amount
of history relating to the transactions of
the Atchison, Topeka and Santa Fe, the
St. Louis and San Francisco and the. At
lantic and Pacific companies. The CORE
spondence between the joint executive re-
organization committee and the Atlantic
and Pacific receivers on one hand and the
Atlantic and Pacific Company on the other
was set forth at great length. The only
important point attempted to be made
seemed to be the alleged failure of the
present receivers to give the Atlantic and
Pacific such part of the true rates as it
ought to have.
Mr. Field next read the affidavit of John
Dougherty, a professional accountant, who
made the report on the road for the At
lantic and Pacific committee. Mr.. Dough-
erty charged the receivers with gross mis-
conduct in administering the affairs of the
Atlantic and Pacific, alleged that the re-
ceivers, through their agents, Mr.. Robin
son, Mr.. Wells and others, had deprived
the Atlantic and Pacific of its proper part
of through rates, abused its equipment,
overcharged, for rented equipment, over
charged for expenses of the system, and
had In great number Of ways conducted
their trust in dishonorabIe manner.
The plaintiffs only read the Bangs and
Dougherty affidavits.
General Solicitor Peck began for the re-
ceivers by reading the affidavit of one of
the receivers, Aldace F. Walker. Mr..
Walker claimed that the receivers had at
all times done all in their power to push
the interests of the whole transcontinen-
tai line known as the Santa Fe, chief of
which was the Atlantic and Pacific; that
a separate and hostile rate-making power
would incumber and cripple the through
route. Such incum brance would injure
the Santa Fe, but still more the Atlantic
and Pacific. He had studied the questions
involved for eleven months, and was sure
the Atlantic and Pacific would be hurt
worse than the other parts of the system.
He believed that the true interests of the
Atlantic and Pacific, and all interested in
it, lay in the preservation of the system
as it then was; that the Atlantic and
Pacific was likely to lose 66 per cent of it's
business if it assumed hostile attitude to
the system; that the receivers had no
obligation to, or relation with, the Atchi-
son reorganization committee, with which
the Atlantic and Pacific committee was at
4ar 10 40 h,,t he
were impartial and independent agents of
the courts having jurisdiction of the
system; the Santa Fe and San Francisco
companies owned the stock of the Atlantic
and Pacific and its second mortgage
bonds, and had the right to redeem, and
were therefore as much entitled to be con-
sidered as plaintiffs; that the receivers
had paid full and careful attention to all
complaints made by the Atlantic and
Pacific committee; that heavy improve
ments had been made by the receivers in
the property; that a great many sugges-
tons of the Atlantic and Pacific committee
had been acted upon to the satisfaction of
the committee.
when the report of an expert was sug-
gested,n said Counsel Peek, "the receivers
ordered all officers of the system to give
the expert every possible assistance. The
report was not received until in January
of this year. Before the report was re-
ceived the Mojave rental had to be paid.
The receivers had long ago filed petition
asking to be permitted to abrogate the old
traffic contracts complained of, and COM
mission had been appointed by the court
to investigate the subject, and the matter
was then pending and under stipulation,
participated in by the United States Trust
Company, could be called up at any time
for full investigation and determination.
He declared that the Dougherty report,
when it appeared, seemed clearly partial
and preiudiced document against the pres
ent receivers, instead of report of facts,
and that there could be no possible COM
plant on behalf OF the Atlantic and Pacific
committee which could not be met and
settled by the court through It's present
receivers and their agents.