The record-union., 1896-11-11
SANTA FE RECElVERSHIP.
TRUE INWARDNESS OF RECENT
APPOINTMENT.
Said to be a Scheme to Bear Stocks
and Bonds and Make Money for
Those in on the "PIay."

TOPEKA (Kan.), Nov. 10.-The true
1nWardnesS of the recent application
and appointment of receiver for the
Santa fe Railroad in the District Court
Of Jefferson County has leaked out.
Since the order of Judge Foster of the
Federal Court was issued restraining
the receiver from taking control and
removing the case from the State
courts, and the publication of the fur
ther fact that the alleged law under
which the proceedings were instituted
was never passed by the Legislature
and was printed in the statutes in
error, virtually rendered all proceedings
void, has caused some of those con-
nected with the case to talk. From
them it is learned that the suit was
from it's inception scheme to bear the
stocks and bonds of the company and
make lot of money for the men who
stood in with the play"
A few days before the suit was begun
in Oskaloosa, and before the recent
election, two bankers of Jefferson Coun-
ty went to Chicago and another to ST.
Louis, where they are said to have sold
heavily of Santa Fe stocks and bonds
Partial revival of confidence In the
country followed. Santa Fe securities
went up, and when it was telegra phed
broadcast that receiver had been ap-
pointed in Kansas for the railroad there
was such a boom all along the line
that spectators paid no attention to
the published reports Of the receiver
ship, and the plan" outlined in Kan
sas had no effect whatever. Instead
OF making money, those who invested in
the scheme lost heavily.
This is the story of the case: A Kan
saS City man declares that a few days
before the action was brought at Os-
kaIoosa a well-known insurance and
speculative lawyer of Topeka called on
him at Kansas City, with proposal
that he go in with certain Topeka, Os-
kaloosa and Holten men and make a
half-million dollars. By the terms Of
the proposition the Kansas City man
was to put UP the money to be used
in selling Santa Fe stocks and bonds
but no money was to be invested until
the Kansas City capitalist should be
convinced that he would be safe
Then the Topeka man unfolded his
plan. He began by stating the terms
of the Kansas alien land Act, and since
ascertafned to have not been passed by
the Legislature, and therefore void, and
the opportunity 1t afforded for the ap-
pointment of a receiver without notice
to the company Persons who should
be short" would make money ON Santa
Fe stocks and bonds
The Topeka man pointed out the let
ter of this law, and said that the CIV
ing Of notice to the company might
interfere with the plan. He suggested
that the Kansas City capitalist should
put up the money in the hands of a
certain Topeka man who is known in
financial circles, to be held until the
Kansas City man should be satisfied
the money then to be used in selling
stocks and bonds of the company, and
after the suit should be brought and
the receiver appointed, but the Kansas
City man still refused to go into the
scheme, and his Topeka visitor left
him, the Kansas City man hearing no
more of the project until 1t was pub
lished that Judge Myers had appointed
a receiver for the railroad
The events since then have been de-
tailed in these dispatches.