The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-07-26
Application for Receiver for
Kansas City-TOpeka Line.
Company Had Already Borrow
ed About $16O,OOO.
BY KANSAS CITY FIRM.
Fidelity Trust Company Makes
the Application
May Mean the End Of This Pro-
ject.

The Kansas City and Electric Rail
way company, later merged into the
Kansas City and Topeka Electric Rail
way company, is defendant in the Uni
ted States court in a suit for of equity
brought this morning by the Fidelity
Trust company of Kansas City, Mo-,
asking that a receiver be appointed and
that the mortgage held by the com
lplainant be foreclosed. Failure to abide
by the contract attendant upon the bor-
Irowing of the construction money is al
Ileged. This may mean the abandon
ment of the road inaSmuch as only
three miles are now built out of Rose
dale where it was planred that the road
should connect with the Kansas City
street car lines.
| According to the petition the promo
ters of the Kansas City and Olathe
company arranged for mortgage loan
of $400, 900 in 800 bondss of $500 each
from the Fidelity Trust company of
Kansas City. OF this amount but 1886
were negotiated and the sum of $160, 900
obtained. The Bracey Howard COM
pany, also defendant in the case had
claims of $4,000 up to that time for
| which the bonds were pledged. The road
should have been completed by June 1,
1904.
Then the organization of the concern
changed and became the Kansas City
and Topeka Electric Railway company.
1t was agreed at the transfer that both
the loans and the obligations should
be assumed by the new company The
latter paid a good many obligations ac-
cempanying the construction of the
road. =
But M 9Hters were generally tangled
up in the transfers, the failure to
progress with the road, satisfactorily
and matters of that nature. With this
statement the Fidelity Trust company
makes it's allegations for a receiver
and a foreclosure:
has not paid any taxes or assessments
against the property: no interest has
at any time been paid upon any OF
the debts secured by the mortgage; the
mortgagor railway company has not
kept or maintained the railroad and
property mortgaged in good order and
condition, but has permitted 1t to go
to waste, and is not caring for or
keeping the same in amy kind of con-
dition now, nor has it had the same
insured. And by reason of the fail
ure to proceed with the construction,
default has occurred in the franchise
and all the property will be very
greatly deprecated in value unless
used in connection with the construc-
ton of said railroad, and the entire
work of construction and right of way
will be lost if said franchises should
be forfeited. The mortgagor railroad
company has failed to keep said prop
erty free from any charge or lien.
There are a large number of labor
claims for services rendered in the
construction of the said railroad which
have not been paid and suits have
been instituted for the payment
thereof
1t was unofficialIy stated this morn
ing that some of the Topekans inter-
ested in the road took steps Monday
afternoon to attach property of the
road in johnson and Wyandotte coun-
ties through which the three miles
of road run, which have already been
built.
The whole matter will be threshed
out in the courts and Slaughtered in
that way. 1t has all the appearance.
however. of stopping the building of
the road.