The record-union., 1899-04-03
MADE A SHREWD MOVE.
OPPOSITION OF sTOCKHOLD-
Frs HEADED OFF.
Receiver Appointed For the Kan
sas City, Pittsburg and Gulf
Railroad.

KANSAS CITY, April 2.-The receiv-
ership for the Kansas City, Pittsburg
and Gulf Railroad, granted in this city
late last night by Judge Gibson of the
Circuit Court, will, according to the
company's officials, interfere in no way
with the operation of the property, and
the reorganization plans which have
been making for some time will, it is
claimed, go forward without delay. The
receivers, all of whom are Kansas City
men, are friendly to the President of
the road, Arthur E. Stillwell, who has
engineered the property from its incep-
! ton The act, they declare, is a friendly
one, and was made necessary to head
off unfriendly Eastern stockholders who
contemplated similar action.
| The history of the Kansas City, Pitts
burg and Gulf Railroad and it's joint
enterprises, the Northern connecting
lines and the Port Arthur ship canal,
contains practically a realization of the
| long desired short line to the Gulf. The
| finishing of the line was accomplished
mainly through the efforts of A. E..
Stillwell, formerly Vice President, now
President of the road. The road grew
out of the old Kansas City, Nevada and
Fort Smith line, of which E. L. Martin
was President. The Nevada and Fort
Smith line was projected to run to the
Gulf, but only a comparatively short
part of it was finished when Stillwell
picked UP the proposition.
| The road was built during the finan-
cial crisis of 1929, and was an I'M
dertaking which few men believed
would ever be completed The original
10 oil Co J,n
Southern terminus. Kountze Bros. of
New York owned 10000 acres of land
in and around Sabine. Stinwen made
application to build his road to Sabine
if the Kountzes would give him 81 per
cent. of the interests there The
kountzes declined the offer Stillwell
| then went to Holland and interested
Dutch capitalists in the enterprise It
was finally decided to make Port Ar
thur, 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 Sep
TENDER IL, 1897, and the first through
train reached Port Arthur on that date.
While the canal was building injunc-
ton followed injunction to delay the
work, and it was only finished on March
10Th last, when the first shipping was
brought up to Port Arthur. Yesterday,
| learning, as they claim, that certain
Eastern stockholders We're intent on ap-
plying for a receivership, it was de-
| cided by the local officials of the road
to head them off.
Accordingly, c. E. Graniss of New
Haven, heavy stakeholder, who is IA
vorable to the local interests, applied
for a receivership, arousing Judge
James Gibson of the Circuit Court from
| bed at late hour last night, to ap-
point receivers. The men appointed.
E. L. Martin, Robert Gillian and ].
McD. Trimble, are, respectively, Vice
President, General Manager and Cen
| eral Counsel of the road, and are
friendly to Stillwell. Stillwell asked not
to be included, stating that he believed
| he could better serve the stockholders
interests if his hands were left united.
| Stillwell says: 'The uncared-for in
| debtedness of the company, including
| coupons, is only $1,0OOOOO. or ; per
! cent of the capital. The earnings. of
the road for March were $4,000. far
in excess of anything I had expected
before the canal was completed. With
this amount Of Indebtedness. it will be
! very easy job to reorganize the road
and put it on its feet in a very short
| time
| Had the road run three or four
months more uninterrupted it would
| have easily paid its floating debt with
out any trouble, and would have had to
take care only of its coupons of S575,-
600"
| The general allegation in the petition
for receivers is that the road is insol-
vent, and that it is unable to meet the
interest upon its bonds, which fell due
April 1st, and which amounts to S575.-
GOO, and is unable to clear away certain
other debts which reach a total of be-
tween 100000 and 100000.