The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-11-06
A NEW RECEIVER.
Named For Part of the Santa
Fe In Kansas,
BY District Judge Myers at
OskalOOsa, Kan,
Under the Alien Land Law Of
Kansas.
NOT THOUGHT SERIOUS
Santa Fe Management Regards
the Suit as UnimpOrtant.
Statements of Both Sides to the
Litigation.


I issued an order appointing Charles F.
4 Johnson ex-state bank commissioner.
/ receiver Of the Atchison, Topeka &
Santa F'e railway in Kansas. The or
der was issued on application of H. T.
/ Phinney OF Oskaloosa, county attorney
/ OF jefferson county assisted by Judge
Henry Keller of this city. This re-
arnrkabIe action is brought in the name
/ Of the state for the forfeiture of all
real estate owned by the company to
( the state of Kansas
Tt is claimed that the suit is the out
growth Of an old fight of long standing
among the stockholders of the Santa
Fe, and that il was instigated at the
instance Of Henry CIews the New
DIRK banker, and Newman Erb, the
well known railroad man
The action is brought under the kan
saS statute Of 1891, which provides that
no corporation more than 20 per CEN
1um Of whose capital stock is, or may
be, owned or held by aliens, shall ac-
Quire, own or hold real estate in the
state OF Kansas, and, that if any real
estate shall be acquired in violation of
the statute it shall be forfeited in
the manner therein provided.
The statute authorizes and directs
any county attorney of any county in
which the real estate is situated to
DrllS an action in the name of the
state for such forfeiture and authorizes
and directs the court to appoint a re-
celVer upon presentation, by the county
The statute provides that it, upon
final hearing the court shall find that
any part of the real estate is held or
owned in violation of the statute the
court shall adjudge such real estate to
be forfeited to the state and shall or
der the same to be appraised. sold and
conveyed by the sheriff in the same
manner provided by law for the sale of
real estate upon execution.
The petition filed by the county at
t0rney is verified and alleges that more
than 20 per centum Of the capital Of
the company is owned and held by al
lens that all of said real estate was
acquire by the company on and since
December 1895; and that the company
had no interest in or lien upon the
same prior to that time.
The order requires the receiver to
take immediate possession of all of the
real estate Of the company in the state
Ex-Bank Commissioner Johnson gave
bond in the sum of $50. 900 and will quail
ify Saturday.
The action of Judge Myers in an
pointing a receiver for the property Of
the company was not entirely a sur
prise to the Santa Fe officials in this
city A. A. Hurd stated that he knew
sucA an action was contemplated, but
that he had received no notification Of
the action being brought
Mr. Hurd and General Manager Frey
ting with General Solicitor Kenna and
about noon AIr Kenna wired the fol-
lowing official statement for publica-
ton:
1t is true that a. receiver for the Dor
ton Of the road Of the Atchison com
pany situated between Atchison and
the Colorado state line. about AIS miles
in length has been appointed by a
state judge in Kansas The appoint
ment was made by Judge Myers Of Os-
kalOOsa on the application of the cOun-
ty attorney without notice of any kind
to the railway company. The suit is
brought up under a law passed bv the
legislature of Kansas in 1891 known as
the alien land law and containing a
provision that no corporation One-ffth
of whose stock IS held by aliens shall
hold real estate in Kansas. The law
relied upon has no application to the
railroad company whose property I'M
der the laws of Kansas is regarded as
personal property The pending pro
ceeding does not affect and cannot af-
feet any of the property of the AtchisOn
company other than the AIS miles afOra
mentioned. The question is one which
we do not fear and are glad to meet
and have settled finally and for all
time. The road viii continue to be Op-
Grated Dy the company as at present
The order does not cOntemplate other
wise, 1T being expressly provided that
in order to protect all public and pri-
vate interests the receiver may enter
into q contract with the railroad COM
pany to operate the road until final
adjudication is had"
Mr. Hurd also made the following
The commencement of the suit is no
surprise to US, although the fact that a
receiver was appointed by Judge Myers
without notice to any party in interest
IS surprise 1 have known Judge
Myers for a numbe of years and have
always had a very high opinion Of him
and am therefore surprised that after
the decision Of the supreme court in the
case of Fletcher against the A T. e.
S. r. railroad company reprimanding
Judge Wagstan for granting an in
junction restraining the payment Of in
terest on certain bonds without first re-
curing notice to be given 10 the oppo-
site party he would grant an order in
volving the possession of hundreds Of
millions of property at an ex parte
hearing Although this suit is brought
ostensibly in the name of the state Of
Kansas under what is known as the
alien land law passed in 1891 1T is real
~ for the purpose Of forcing the pay
ment of a private claim. A man named
Mabie has claim OF eighteen or TWEEN
" thousand dollars for injuries re-
ceived in the state of Illinois against
pany and has been seeking to compel
the present A, T. & S F. Railway com
TO pay the claim. and the matter has
been pending before a special master in
the federal court for @ long time
Mr.. Henry Keeler is the attorney for
the plaintiff in the case and we We're
informed several weeks ago by reliable
parties who had been approached by
Mr. keeler that a conspiracy had been
formed between Mr.. Keller and a
banker. whose name I do not now care
to give. in Valley Falls. and another
proposed to make application to have
q receiver appointed for the road under
the alien land law to force the payment
of that claim The parties were So