Los Angeles herald., 1905-12-05
TWO RAILROADS INsoLvENT
Cincinnati, Hamilton g. Dayton and
the Pere Marquette Express Inc
ability to Meet Obligations
BY Associated Press.

BY Associated Press.
CINCINNATI, Dec. 4.-The Cincin-
natl, Hamilton e. Dayton railroad and
Pere Marquette railroad were ordered
placed in the hands of a receiver by
United States Circuit Judge Henry
Lurton tonight, and Judson Harmon.
former United States attorney general,
was appointed receiver, giving bond for
total Of 100000. The application was
made by Attorney Lawrence Maxwell,
tr., on behalf of Walter Horn of New
York, a creditor of both roads, and was
agreed to by the defendants, In answers
admitting the principal charges Of in
solvency
In the main application for a receiver
for the Cincinnati, Hamilton e. Dayton
road, which was first filed, 1t was de-
clared that Walter b. Horn, a resident
of New York, was creditor to the
amount of S62.9S6 for money loaned, now
due and which the defendant has ad-
mitted his inability to pay. The de-
fendant company was declared to have
been solvent prior to July Z, 1904, on
which date II came under q different
controlling interest, and assumed large
obligations, one of these being the pur-
chase of 10000 shares of Pere Mar
quette, and the Toledo Railway and
Terminal company, involving large OBJ
legations for terminals at Toledo, and.
thiro, an agreement to carry S3,500,0O0
bonds issued by the Pere Marquette to
cover its purchase of the Chicago, Gin
oinnati & Louisville railway. The re-
celvership was asked to include the
leasehold of the Pere Marquette.
Attorney Stevens at once presented
the answer to the company, explaining
that 1t was sworn to by Vice President
Brownell of the Cincinnati, Hamilton &
Dayton railway, on the authority of
the board of directors. Insolvency is
admitted, the statement of a deficit of
more than S6,0O0,000 with various suits
threatened being made in the answer.
Judge Lurton was reluctant, he said,
to make the appointment, but under
all the circumstances he felt 1t was for
the interest of all concerned, but he
said that while he would agree to a re-
ceiVership he wanted to say that she
would not agree TO the naming of any
railway man who might run the prop
erty In some special interest but would
prefer to appoint some one who was in
no way connected with railways or with
this proceeding. The suggestion of the
name of Judson Harmon was accepted
by attorneys for both plaintiff and de-
fendant, and was approved by Judge
Lurton, who thereupon named him as
receiver fixing the bond at 100000.
An ancillary application was then
made by Mr.. Maxwell on behalf of wal
ter B. Horn of New York. a creditor of
the Pere Marquette to the extent of
$345.S5S for the appointment of a re
ceiver also for that property, which
was alleged to be insolvent.
An answer similar to that filed in the
first and main procedure was presented
by Attorney Stevens. admitting insol-
vency and stating that the best in
terests of all creditors would be con-
served by the action proposed. The
court thereupon ordered the placing of
the Pere Marquette. in so far as it was
covered by the leases of the Cincinnati
Hamilton & Dayton. in the hands of a
receiver and named Judson Harmon
for that position also In connection with
this road. His bond was fixed at 500,
0C0 in the case of the Pere Marquette
The decree in both cases u Az fled I'M
mediately. MIR. Harmon al once utta IL
field, presenting a surety bond which
was approved
The history of the Cincinnati, Hamil-
ton & Dayton railway has been full OF
incident and at times somewhat sensa :
tional 1T has had many owners, among
them BraYton Ives, Senator Calvin
Brice, Eugene Zimmerman, the Erie
railway and J. p. Morgan, who relieved
the Erie of the road few days ago.