The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-11-11
Why Receiver For the Santa Fe
Was Demanded.
SCHEME TO BEAR STOCKS
MEN WHO STOOD IN EXPECTED TO
MAKE MONEY.
The Deal Was Nipped In the Bud,
However, and Those Who Invest
ed In 1t Lost Heavily-A Very In
teresting Railroad story.

! TOPEKA, Nov. 10.-The true inward
ness of the recent application and ao-
pointment of a receiver for the Atehison
Tcoeka & Santa Fe railway in the dis
t-ict court of jefferson has leaked out.
S..ce the order of Judge Foster of the
federal court was issued restraining the
receiver from taking control and remov-
IL the case from the state courts and
tie publication of the further fact that
the alleged law under which the pro-
ceec-ngs were instituted was never
passed by the legislature but was
printed in the statutes by error. virtually
rendering all proceedings void, has
caused some of those connected with the
case TO talk. From them 1t is learned
that the suit was from its inception a
scheme TO bear the stocks and bonds of
the company and make q lot OF money
fer the men who stood in with the
play" A few days before the suit was
begun in Oskaloosa, several bankers OF
JEFFERSON county went to Chicago and
2ncther to st. Louis where they are SAID
to have sold heavily of Santa F'e stocks
and bonds. Partial revival OF confidence
y the country followed Santa Re Sc
curitieS went up and when il was tele-
Sraphed broadcast that a receiver had
been APPOINTED in Kansas for the raw
road there was such . boom all along
the line that spectators paid no aften-
tl.n To- the Publ shed reII1tS. OF the re
Ownership and the play" out here in
Kansas had no effect whatever. Instead
of making money the bankers and
others who invested in the scheme lost
heavily. This is the story of the deal
Kansas City man of financial worth
and OF undoubted standing in that city
declares that few days before the ac-
ton was brought at Oskaloosa we'll
known insurance and speculative lawyer
OF Topeka called ON him at Kansas
City with proposition that he go in
W.; certain Topeka, Oskaloosa and Hol-
tor men and make Sl,eO0.0O0. 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
until the Kansas City capitalist should
be convinced beyond doubt that he would
be safe. Then the Topeka man IN
folded his plan. He began by. stating
a:-d since ascertained to have not been
passed by the legislature and therefore
void, and the opportunity it offered for
permanent receiver for the railroad
without notice to company. He pointed
out that a receiver could be appointed
for the Santa Fe and persons who should
be short its stock or bonds would
make big money, for the sudden and I'M
expected receivership would bear them
Tae Kansas City man doubted that
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 interfere
Will Oh Tie suit anu on lIdI
ground appoint a receiver. He suggested
that the Kansas City CAPITALIST should
put UP the money in the hands of
certain Topeka man who is known N
financial circles to be held until the
Kansas City man should be satisfied the
money would then be used in selling
stocks and bonds of the company and
after that the suit should be brought and
the receiver appointed by 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 it was published that Judge
Myers had appointed a receiver for the
railroad. The events since then have
been detailed in these disoa tches.
1t IS not improbable that the receiver
ship case may be sumrnarily dismissed
within a few days by Attorney-Ge
Saves of Kansas. 1t is known that he
does not consider it well founded in law
and is not in sympathy with its prose
ct:tion. When questioned by the United
Associated Presses representative today
he said: 81 have not yet investigated
the case to my own satisfaction. If
after thorough investigation l find the
case has merits l will prosecute il. bnt
f | find the law is not, sufficient. If
find the bringing of the suit was a great
conspiracy to line the pockets of a few
men at the expense of the Santa Fe road
and the state. then this suit will come
TO a sudden end" rs