The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-04-03
'PEEGEE' RECEIyERSHIP
Kansas City Interests Headed Off the East,
ern Capitalists.
DIFFICULTIES WHICH BtSET THE ROAD
Intnncttons ARainst the Fort Arthur
serious obstncle--'rh. ,;osd Ia
Now Earning Good Money.

railroad, granted In this c.,y late las, ntxn.
by Judge Gibson Of the circuit court, viii.
according to the compsny's oaicla!s, in
terfere in no way with The operad, IN Of
the property and the Reorganization plans
which they have been making Tor some
time since, viii, it is claimed, 10 forward
without change.
The act it is declared is trlcndly one
and made necessary to head of anlriendiy
Eastern stockholders who contemplated
similar action.
The history of the Kansas City. Pitts
bug and Gulf railroad and its Joint en-
terprses, the Northern connecting lines
and the Port Arthur ship cham H. contains
practically a realization Of the long de-
sired short line to the gull.
The finishing of the line was accomplish
ed mainly through the efforts OF A. Il.
Sullwill, formerly vice president, now
president OF the road. The road g-ew
out Of the old Kansas city, Nevada aud
Fort Smith line, OF which r. T., Mastiu
was president. The Nevada and Fort
Smith line was projected to run to the
gulf, but only a comparatively shnr part
OF II was finished when Mr.. Stlwoll
picked ZIP the property. The rosd was
"a - s ~ s "n"iSial oiisis Vi leV--'o'
ha,,,, 80 @u uiucF.ahine wnlcn rev men
general purpose was to make Sabine Pass,
Texas the Southern terminus. Kountze
Brothers OF New York ON lad 40 coo acres
OF land in and around Sabine. Stilwell
made proposition to build his road 10
Saulhe II tne heuntaes would glVe MIN Of
Del cent OF ths lntefss,s tnete' me
NOMINEES deollned' MI. Stilwell then went
70 Hoiiand ana interested Dutch call
.ais,s IN the enterprise. II was i'nally
declded TO make Fort Arthur, Texas, the
road terminus and to oulld ship char
mel from mat point eight mile5 to sabiUe
lake. The last spike in the road was driven
on september II. 1897. and the tlst
through train reached Port Artau: on T. at
day.
While the channel was building inlunc-
ton Followed injunction 10 delay the -. Il
and IL was only finished n Marsh IS LIST,
when the first shipping was brought TO
Port Arthur from the gulf In the rlean-
time Mr.. Stilwell assumed the presi
dency OF the road. z. L. Martin being iaade
vice president Branch rJIls becoming
necessaries for Northern cnu lectlons. ipe
Fttsburg and Gulf company bought and
built lines giving them Omaha and Quincy
connections These latter lines ere rot
included in the receivershl2 A b.d for
the Alton road for a Chica % entrance was
made hut fell through
Its long fight 10 obtain the channel made
Il apparent several years ago that the
road would not for the present be able
to meet the interest on its bonds and re-
organization of the whole propertv was
talked of. Mr.. stiIweII snent three months
in New York working an the nroiect and
when he returned to Kansas CITY last
week n was announced that satisfactory
pIans had been decided uuon and would
SION he announced TIE reorganization
Man was never made pubIic in full hut
il included a scaling down Of the bonds a
red, ction in the rate. an issue Of pre
ferred stock and redistribution OF sec,ri-
ties all round. II became necessary. how
ever. IN extend the date OF filing of the
bonds bv stockholders, some of whom. II
was stated. demurred TO the reorganza-
tion.
few DAYS ago it was learned, accord
ing TO the local officials OF the road that
The state Trust company of New York.
which holds the roads bonds TO tho amount
nf 500 600 600 was prepared 10 take deci
sive action il the interest payments OF
s575 000. 600. due on April /, were not met.
Yesterday learning as thew claim. that
certain Eastern stockholders were intent
on APPLYING for a receivership. it was de-
cided by local officials OF the road to head
them of. Accordingly. y. IL iITdnIls OF
/ New Haven. heavy stakeholder, who Is
favorable to the local interests, applied for
recelvership, srousng Judge James Glib
con OF the circuit court from bed at a late
| hour last night TO appoint receivers. The
men appointed-E. l.. Martin. Robert Gill.
| ham and ]. Med. Trimble--are Respectively
vice president. general manager and gen
eral counsel of the road
| They arc friendly to Mr.. Stilwell.
Mr.. Stilwell asked to be excluded. stat
ing that nc believed he could better serv,
| The stockholders interests IL his hand;
were left united. Mr.. Stilwell says "Tht
floating indebtedness of the company, in.
cfmdine ooupons. is only 81. 900, 600, or
ner cent Of the capital The earnings o.
! he road for March were 1895 900. far ir
excess of ANYTHING that had expected be
fore the canal was completed. With this
amount OF indebtedness 1t will be yer,
/ easv iob 10 reorganize the road to put Il
an a. feet in very short time.
"Had the road had three or four months
more uninterrupted It would have quickl,
Maid it's floating debt without any trouble
and would have had to take care of onl3
! its coupons OF $751;. 900"
The general allegation in the petitlor
for receivers is that the road Is insoiveh
in that il is unable 10 meet the iutefes
mon it's bonds, which falls due April ;
and which amounts TO s57S'OOo' ana !