Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-04-03
IMPORTANT nIcEivERsDir.
Kansas city. Pitt-bnrs Guif u aiws,
Make. % surprising Move.


A sensation In railroad circles has
been caused by the action OF tho au-
thoritles OF the Kansas city. Pittsbury
a Guif. Port Arthur route. In placing
the Affairs OF the road In the hands OF
a receiver. This line has extensive
traffic relations with western roads. and
had opened up a new Gulf connec-
tion.
Kansas city. April 2.-The receiver.
ship for the Kansas city. Pittsburg a
Gulf railroad granted In this city late
last night by Judge Gibson Of the cir
cult court. will. according TO the com
pany's officials. interfere In no way
with the operation OF the property. ana
the reorganization plans. which have
been making for some time since. VIII.
Il IL claimed. 10 toward without delay.
II II claimed. or forward without delay.
city men, are friendly to the president
Of the road. Arthur n. stlilweli. who
has engineered tho property from It's
inception. The act. they declare. IN "A
friendly one, and was made necessary
10 head on unfricndly eastern stock
holders who contemplated similar ac-
tiun.
pittNburg A Gulf railroad. and Its
Joint enterprises. the northern connect
Ing lines and the Port Arthur ship cam
al, contains practically n realization OF
u long desired short line to the Gulf.
The finishing OF the line was accom-
plishcd mainly through the efforts OF \.
Il. stlllwcll. formerly vice president.
now president OF the road. The roan
grew out OF the old Kansas city. Ne
vAdn n Fort Smith line. OF which Y. l.,
Marlin was president. The Nevada A
Fort Smith line was projected to run
TO the Gulf. but only n comparatively
short part Of II was finished when AIR
stillwoll picked up the proposition. The
road was built during the financial
crisis of isa2-a1. and was an undertake
ing which few men believed would ever
be completed.
The original purpose was to make
Sabine, Tex, the southern terminus
Kountxc brothers OF New York owned
10000 acres of land In and around ga
bine. Stlllweli made n proposition To
build his road TO Sabine N the kountxcs
would give him 81 per cont or their IN.
forests there. The kountger declined
the offer. Mr.. Stillvcli then went 10
Holland and Interested Dutch capital
lists In tho enterprise. II was finally de-
cldcd to make and 10 build a ship can
al from that point eight miles TO sabine
like.
The last spike In the road was driven
on September II. 1897. and the ffrt
through train reached Port Arthur on
that day. while tho canal was build
INK Injunction followed injunction TO
delay tho work. and Il was only nm.
iahed ON March 20 last. when the FIRST
shipping was brought up to Fort Ar
thur from the Gulf
In the meantime. MFR. Stlllwcil as
rumed the presidency OF the ROAD, v. L.
Martin being made Vice president.
nrnnch roads becoming necessary foi
northern connections. the Pittsburg A.
Gulf company bought and built lines
hu
nec;iona. These lines are not Included
IN the recoivcrship. A bid for the Alton
road for a Chicago entrance WIS made
but fell through.
Its long night 10 complete the canal
made II apparent several months hso
that the road would not,for the present,
be able to meet the interest upon ~
bonds. and u reorganization OF the
whole property was talked OF. Mr.
Stillwcll spent three months IN New
York working on the project. and when
he returned To Kansas city last week
| II was announced that satisfactory
plans had been decided upon and would
soon be announced. The reorganixa-
ton plan was never made public IN
| full, but n included a sealing down
Of the bonds. a reduction Ia the inter
est rate. an issue 81 nrf
and a redistribution OF Hecurltica MI
around II became ncccasn'y y. how
ever, 10 extend the date Of filing OF the
bonds by stockholders, some Of whom
| u was stated. demurred In the reorgan'
I ixation.
\ few DAYS ago II was learned. nc
/ c0rdlng 10 the local officials of the road
that the state Trust company OF New
| York, which holda the roads bonds "a
| the amount of 1000, 900, was prepared
/ To take decisive action n the interest
payments Of $4,000, due on April j
were not met.
Yesterday. learning. na they claim
thnt certain eastern stockholders wer'
/ intent ON applying for "a rcceiverahip
" ems decided by local officials OF tn,
road to head them on.
] Accordingly. g. y. 1rnnnis ~ New
Haven, heavy stakeholder who II
favorable 10 the local interests, applied
for receivershlp. nrouHing Judge
James Gibson Of the circuit court from
bed at u late hour last nlght 20 appoint
receivers. The men appointed. u. l.
Martin, Robert Gilman and J. Med
| Trlmbue are respectively vice prcni'
! dent, general manager and genera
counsel Of tho road, and are fricndi,
| 10 Mr.. Stillwell Mr.. Stlllwcl asked
not to be Included. stating that he be-
llev.d he could better serve the stock
holleis' interest II his hands were lefi
| united
Mr.. stillweli snys; 'The uncnred-fo
Indebtedness % the company, Including
7 -.-...--..