The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-04-03
WILL Be RE0RGAN|zED
Receivers Appointed for the Kan
sas City, Pittsburg g. Gulf.
CONDITION OF THE ROAD
Officials Assert That the Property Is
Profitable One and VIII Be on
Paying Basis in a
Short Time.

Kansas City, April 1.-The receiver
ship for the Kansas City, Pttsburg &
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, and
the reorganization plans which have
been making for some time since, will,
it is claimed, go forward without de-
lay. The receivers, all of whom are
Kansas City men, are friendly to the
president of the road, Arthur e. Still
well, who has engineered the property
from it's inception. The act, they de-
clare is a friendly one, and was made
necessary to head off unIriendly East
ern stockholders, who contemplated a
similar action.
The history of the Kansas City, Pitts
burg & Gulf railroad and its joint en-
terpriseS, the northern connecting lines
and the Port Arthur ship canal. con-
tains practically a realization of long
desired short line to the gulf. The fin
ishing of the lines was accomplished
mainly through the efforts of A. E. Still
well, formerly vice president, now pres
ident of the road. The road grew out
"
Smith line, of which e. L. Martin was
president. The Nevada & Fort Smith
line was projected to run to the gulf, but
only a comparatively short part of it
was finished when Mr.. Stilwell picked
up the property. The original pur-
pose was to make Sabine, Tex, the
southern terminus. Kountze brothers
in and around Sabine. Stilwell made
proposition to build his road to Su-
bine if the kountZes would give him
81 per cent of the interests there. The
Kountzes declined the offer Mr.. Still
we'll then went to Holland and inter-
ested Dutch capitalists in the enter
prise. 1t was finally decided to make
Port Arthur, Tex, the roads terminus,
and to build ship canal from that
point eight miles to Sabine lake. The
last spike in the road was driven on
Sept. II, 1897, and the first through
ira reached Port Arthur on that day.
While the canal was building injunction
followed injunction to delay the work,
and it was only finished on March %
last when the last shipping was
brought up to Port Arthur from the
gulf. In the meantime Mr.. Stilwell as
sumed the presidency of the road, E.
L. Martin being made vice president
Branch roads becoming necessary for
northern connections, the Pittsburg &
Gulf bought and built lines, giving
them Omaha and Quincy connections
These latter. lines are not included in
the receivership. A bid for the Alton
road, for a Chicago entrance, was made,
but fell through. ~
I It's long fight to complete the canal
made it apparent several months ago
that the road would not, for the pres
ent, be able to meet the interest upon
its bonds, and a reorganization of the
uh tal If
well spent three months in New York
on the project and when he returned
to Kansas City last week it was an
nounced that satisfactory plans had
been decided upon and would soon be
announced. The reorganization plan
was never made public in full, but it
included a scaling down of the bonds,
a reduction in the interest rate an
issue of preferred stock and .redistrib-
ution of securities all around. 1t. be-
came necessary, however, to extend
the date of the filing Of the bonds by
stockholders, some Of whom, it was
stated, demurred in the reorganization.
A few days ago 1t was learned, ac-
cordng to the local officials of the
road, that the State Trust company of
New York, which holds the roads
bonds to the amount of $23, 900 900, was
prepared to take decisive action if the
interest, $4,000, due on April l, was
not met Yesterday, learning, as they
claim, that certain Eastern stockhold-
ers were intent on applying for a re-
ownership, It was decided by local Off
Gals of the road to head them off. Ac-
cordingly, G. E. Grannis of New Haven,
heavy stakeholder, who is favorable
to the local interests, applied for re-
ceiVership, arousing Judge James Glib
son of the circuit court from his bed at
a late hour last night to appoint the
receivers. The men appointed e. l..
Marlin, Robert Gillian and J. Med.
Trimble, are respectively vice president,
general manager and general counsel
of the road, and are friendly to Mr..
Stilwell. Mr.. Stilwell asked not to be
included stating that he believed that
he could better serve the stockholders
interests if his hands were left united
Mr.. Stilwell says:
THE uncared for indebtedness of the
company, including coupons. is only
$1,0O0,000 or per cent. of the capital
The earnings of the road for March
was $336,000, far in excess of anything
that I had expected before the canat
was completed. With this amount of
Indebtedness it will be a very easy Job
to reorganize the road and put it on its
feet in very short time. Had the
road had three or four months more
of uninterrupted progress it would
have easily have paid its floating debt
without any trouble and would have
had to take care only of its coupons
of $50 O00."
The general allegation in the petition
for receivers is that the road is insolv-
ent and that it is unable to meet the
interest upon its bonds, which falls due
April l, and which amounts to $4,000
and is unable to clear away certain
ether debts which reach a total of
between 100000 and $4O0, 600
A Serious Collision.