New-York tribune., 1905-12-05
C. d. & ROAD BANKRUPT
IN RECEITER,S HANDS.
Pere Marquette also Insol0ent-
JudSon Harmon Takes Charge.

Cincinnati Dec. 4-The Cincinnati, Hamilton
! and Dayton and the Pere Marquette railroads
to-day were ordered placed in the hands of
receiver by United States Circuit Judge Henry
LLrton and Judson Harmon. ex-United States
Attorney General was appointed receiver, Civ
ing a bond for 100000. Application for
ceiver was made by Lawrence MaxSell. jr.. on
behalf of Walter B. Horn of New-York, a
creditor of both roads, and was agreed to by the
| defendants in answers admitting the principal
CT arges Of insolvency
In the main application for receiver for the
Cincinnati Hamilton and Dayton which was
first filed it was declared that Walter B. Horn
was a creditor to the amount of S629s6 Is for
money loaned, now due, and which the DEFEND
ant had admitted inability to pay. The petition
declares:
l. 1894 When it came under a different controlling
influence. and assumed large oblsatlons' one OF OF
these hefng the purchase Of 10000 shares of PERI
Marquette stock for $i25oOG0o0; second, trparte
agefe snd he dlo Teedo doe railway and Terminal
pany. involving large obligations cor III us 90
bonds issued by the Pere Marquette TO cover its
purchase of the Chicago, Cincinnati and Louisville
Since July l. 1891 the funded debt has been in
in the fixed charges Of over 100000 exclusive of
fgrther annus Sed charges OF $500 500 6atns on tine a6
has been increased until it exceeds s6Ooo.Coo
curity: has no credit: is Unable to secure funds
while number of suits by creditors sure sto be
The funded debt Of the defendant company and
p G9 de5 o. the the Fers
Marquette and constituent companies was upward
Louisville was more than $55000G0 and that of the
Toledo Railway and Terminal Company was S. 500
COO The floating debt OF the defendant company
was $6625,oo9 exclusive of judgments to the amount
The cash assets Of the del defendant the close Of
sets OF the Pere Marquette, amounted to less than
| S0GGH On January l. 1906, there will be due inter-
we're @ @ issued for the purchase Of the heago cincn
matt and Louisville Railway and assumed by the de
! with which to pay such interest -
amount to 100000 for which the estimated De-
cember earnings of 81 l625Co0 not more than $4,000
! in bills receivable and not more than 100000 cash.
were available.
1t was alleged that one of the banks from
which the defendant had borrowed 100000 on
demand paper had arbitrarily charged the
amount against a deposit account of the de-
fendant at the same bank without the consent
s. of the defendant, although the defendants
; checks for a larger amount were outstanding.
The answer Of tho company. sworn 10 by Vice
/ President Brownel1 OF the G.. IL and d. on the
authority OF the board of directors. admitted
insolvency and deficit Of more than $6.0O0.0oo
! with various suits threatened.
! Judge Iurton said that he would agree to a
| receivershp, but would not name any railway
man VINO might rlin the property in some spe-
/ cia interest, but would prefer 10 appoint some
! one who was in no way connected with the rail-
way or with this proceeding.
An ancinary application was made by. Mr..
| Maxwell, In behalf Of Walter B. Horn. a creditor
of the Pere Marquette 20 the extent of $345,
/ 35S II for the appointment of 4 receiver for
that property This petition alleges:
That January lsq6 there will fan due in
terest % the amount of $is3s59 on Pere Marquette
/ bonds for which that company has deposit or
! pledge or mortgage. There are outstanding ohga-
! lions of more than s. toi,9la The funded debt on
! December ]. li45 was rlore than s5i019,e00 n
/ t.yeuty-four les OF bonds
The bonded debt of the Chicago, Cincinnati and
lontiurraa On eirhtI nara