Omaha daily bee., 1899-04-02
RECEIVERS FOR GULF ROAD
Affairs OF Port Arthur System Taken Into
Court at Kansas City,
INTEREST OBLIGATIONS CANNOT Be MET
Movement Is Inaugurntcd Early 10
Secure Receiver Who is Friendly
To Eastern Intcrcsts-only
Main Line Involved.

KANSAS CITY, April LA receivership
for the Kansas City, Pittsburg & Gulf rail-
road was asked tonight Of Judge Gibson, in
the circuit court by Charles e. Grannis and
other stockholders and creditors.
The application was granted and Judge
Gibson appointed the following named Off
cials of the road as receivers: b l.. Mar
tin, vice president; Robert Gillham, general
manager, and j. Med Trlmble, attorney, all
of this city.
Considerable mystery seems to surround
the affair. President A. E. Stillwell of the
road, when telephoned at his home at l
O'Clock this Sunday morning, denied any
knowledge Of receivership. 1t is believed
the receivership Is friendly one
Interest Cannot he Met.
The interest today amounted to $4,000
and it could not be met. When this fact
became known movement was inaugurated
to secure the appointment of receiver who
would be specially friendly to the eastern
interests of the road. This move was check
mated by the preparation Of the papers for
the appointment of local receivers.
Judge Gibson was applied to late tonight,
tho petition for the appointment of re-
ceiver was signed by Charles A. Braley, Il.
T.. Silver and John A. Eaton of the law firm
OF Trimble & Braley. The outstanding debt
of the system is s23,000000 of bonds The
interest today amounted to $515,OOO. The
equipment of the system amounts to 100000
or $4,000 per month, which consumes the
earnings and diverts them from the interest
fund.
Only Main Line Involved.
The receivership does not involve any in
terest of the Port Arthur system other than
the main line of the Kansas City, Pittsburg
C Gulf railroad The northern lines, Kan
sas City Suburban Belt and the Port Arthur
Canal and Dock company, together with
other interests, are said to be upon firm
financial basis.
The financial troubles that have involved
the Plttsburg & Gulf are directly attribu-
table to the fight against the completion of
the canal, as it deprives the railroad of
terminal facilities at the gulf for more than
year and compels the company to use
the Galveston which necessitated giving up
a very large share of the revenue that would
ordinarily accrue to the road.
e. l.. Martin said tonight:
The application was made In order to
prevent the road from falling into the hands
of some one as receiver whom we know moth
ing about and whose methods of handling
the property could only become known to
the stockholders as events brought them
about. We are certain we represent the
sentiment of the great majority of the stock
holders in our scheme for reorganization and
consolidation / am confident in five or six
months the receiver will have affairs squared
up"
c. A. Braley said: 81 received an inti-
nation today that a move was on foot
when the interest was defaulted to secure
the appointment Of an eastern receiver. We
then determined to keep the road in the
hands of its friends and in the place where
it was originated. 1t is Kansas City en-
terprise and Kansas City receivers should
control its destinies.'