The San Francisco call., 1896-11-11
The Santa Fe Road All Right
in Kansas, but Spectators
Saw a Chance.
BEARING DOWN THE STOCK
Recent Legal Proceedings Merely a
Plot to Dabble in the Lines
Securities.

TOPEKA, KANs., Nov I0.-The true in
wardness of the recent application and 'ap-
pointment of a receiver for the Atchison.
Topeka and Santa Fe Railway in the Dis
trict 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
publicatio of the further fact that the
alleged law under which the proceed dings
were instituted was never passed by the
Legislature, but was printed il the
statutes by error, virtually rendering all
proceedings void, some of those connected
with the case have commenced to talk.
From them it is learned that the suit was
from its inception a 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 County 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 coun-
try followed. Santa Fe securities went
up and when it was telegra phed broadcast
that a receiver had been appointed in
Kansas for the railroad there was such a
boom all along the line that spectators
paid no attention to the reports of the re-
ceivership and the play out here in
Kansas had no effect VIII atever. Instead
OF making money the bankers and others
who invested in the scheme lost heavily.
This is the story of the deal. A Kansas
City man of financial worth and of un-
doubted standing in that city declares that
few days before the action was brought
at Oskaloosa a well-known insurance ard
speculative lawyer of Topeka called on
him at Kansas City with a proposition
that he go in with certain Topeka and Os-
kaloosa men and make $500,0O0.
By the terms of the proposition the Kan
sas 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 beyond doubt that he would be
"safe."
Then the Topeka man unfolded his
plan. He began by stating the terms of
the Kansas alien land act, since asce7-
tanned to have not been pass ed by the
Legislature and therefore void and the
opportunity it offered for the appointment t
of a receiver for railroad without notice
to the company. He pointed out that a
receiver could be appointed for the Santa
Fe, and persons who should be "short"
on its stocks or bonds would make big
money, for the sudden and unexpected
receiversh hip would bear them. The Kan
sas City man doubted that a Judge could
be found in Kansas who would appoint a
receiver without notice to the company.
The Topeka man pointed out the letter
of this law and SAID that the Judge would
hold that notice to the company might in
terfere with the purpose of the suit and
on that ground appoint receiver. He
suggested that the Kansas City capitalist
SHOULD put up the money in the hands of
a certain Topeka man VINO is known in
financial circles to be held until the Kan
sas City man should be satisfied, the
money then 10 be used in selling stocks
and bonds OF the company and after that
the suit should be brought and the re-
ceiver appointed, but the Kansas City man
still refused to go into the scheme and his
Topeka visitor left him, the Kansas Ci ty
man nearing no more OF the project until
it was published that Judge Myers had
appointed a receiver for the road The
events since then have been detailed in
these dispatches.
1t is not impossible that the receiver
ship case may be sum m arily dismissed
within few days by Attorney General
Saves OF Kansas. 1t is known that he
does not consider it well founded in law
and is not in sympathy with its prosecu-
tion. When questioned by the United
Associated Presses representative to-day
he said: II have not yet investigated the
case to my own satisfaction. If after
thoroughly investigating it find the case
has merits, will prosecute it, but, if
find the law is not sufficient-if l find the
bringing of the suit was great conspiracy
to line the pockets of few men at the ex-
pense of the Santa Fe road and the State,
then this suit will come to sudden end"