The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1895-09-06
SANTA FE FORECLOSURE
Judge Caldwell Eminent Lawyers in
Conferences.

| circuit court, the attorneys, receivers,
railroad officers and others interested,
were all in the city early this fore
noon to take up the foreclosure OF
| Atchison Topeka and Santa Fe rail-
road.
Besides Judge Caldwell there were
present Receivers Joseph G. Wilson,
John j. Cook aud Aldace r. Walker;
George R. Peck, general solicitor OF
the Santa Fe system, and E. d. Kenna,
who, after September Is, will be gem
eral solicitor; Rossington, Smith and
Dallas of Topeka and Wheeler Ii.
| Peckham of New York, attorneys for
the Union Trust company, which
holds the first mortgage bonds;
| w. w. Greene of New York, at
torney for the Mercantile Trust
company, which holds the second
mortgage bonds: j. d. Springer OF
| Chicago, attorney for the Chicago Ele.
waited Terminal company, which holds
an intervening petition in the case,
but which was not discussed to-day;
| Victor Moravitz of New York, attor-
ney of the reorganization committee;
A. A. Hurd, general solicitor of the
Santa Fe for Kansas; ID. 3. Robinson,
president of the Santa Fe: Mr.. Gillette,
general auditor; j.. j. Frey, general
manager; J. B. Johnson, special mas
ter in chancery; Colonel Cyrus K. Hol-
liday, a large holder of stock and the
originator of the Atchison, Topeka
and Santa Fe enterprise. Many spec
tators and newspaper men also gath
cred to hear the final order of the
court hat it is hoped will put the old
road on it's feet again and ultimately
restore it to its original rank in rail-
road enterprises.
Judge Caldwell sat in chambers, Sc
Letting the parlor of the Hotel Throop,
and the details were arranged in a
conversational way. Tide lawyers
We're around the judge, who occupied
a low rocking chair at a small table.
Back of the attorneys sat the receivers
and officers Of the road, and at the out
skirts of the group the spectators
found standing oon The proceeding
was without formality, the court en-
tering into q friendly discussion of the
points presented to him.
The decree orders the sale of the
road under the first mortgage and pro-
vides also for a foreclosure of the Sec
ond mortgage and for the protection,
by agreement. of all parties in inter
est, of the holders of that mortgage.
It names Judge John h. johnson, who
has been special master in chancery in
the case, as special master to sell the
property. The date of the'sale will be
fixed by Judge johnson when he ad-
vertises it. Then the court will have
to make an order confirming the sale
and it will not be until about the first
Of the year when the receivers will
turn the property over to it's owners.
The st. Louis and San Francisco and
the Atlantic and Pacific are not in
Guided in the decree. They will con
tlnue in the receivership. This is on
account of the quarrels which have
been forced by some of the bond
holders.
The Santa Fe system proper, which
by this decree will pass back into the
hands of its owners, might. like these
roads have, been kept in receivership
indefinitely if the parties in interest
had chosen to quarrel. but fortunately
a peace was patched up with the
holders Of the second mortgage bonds
n all consented to a decree in fore
closure.
The plan of reorganization which
has now been declared a success pro-
vides for the creation Of the following
new securities to take the place of the
old schedule: Common stock, $lO2,-
600 900; preferred stock, $ per cent
non-cumulative, $1l1,4s6, 600; general
mortgage 4 per cent 10O-year gold
! bonds, $S96, $50, $50; 4 per cent 1O0-year
adjustment bonds, ISL, T2s, $40; miscei-
laneous bonds, ST., 562, $50; prior lien
bonds ut exchanged), $~l2,O2O,414;
Chicago and st. Louis railroad,
first mortgage, 81, 500, 900. The
100-year gold bonds take the place of
the original first mortgage of $3.50, 1884,
GOO. The five per cent preferred stock
is in lieu of the income bond debt fas-
tened upon the property by ex-Presi-
dent Remnant. This will o begin to
bear interest until 1900, by which time
it is hoped the earnings of the proper
ty will be sufficient to meet the new
charge. The proposed fixed charges
are 81, 52s, 547.0 8 against 1885, s2. IS.
The net earnings of the Santa Fe
system prope as shown by Expert
Little's report of the fiscal year
ending June so, 1894, were
IS, 94s, OLE. &C. The net earnings of the
year ending June 80, 1893. as per the
company's own report (which is found
to have been false) were for the
entire system $l2, 7l0, 746; the gross
earnings for that year. $4i, 315,a547. Mr..
Little found the gross earnings of
the Santa Fe proper to have been
for the year ending June 80, 1893, $37,-
052 ,354; for the year ending June 80,
1894, $780, 1875 900. The mortgage upon
which Judge Caldwells order of sale