The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-05
RAILROAD NEWS.
G. H. g. D. and Pere Marquette
in Hands Of a Receiver.
Roads Purchased by J. T
Morgan Are InsOlYsnt.
OBLIGATIONS MAN
JudsOn Harmon Will Have Task
of Saving the Property.
Gossip and Matters Of Interest
in Railroad Circles.
OBLIGATIONS MANY.

Cincinnati. Dec. 5-The Cincinnati
Hamilton & Dayton and the Pere Mar
ouctte railroads were ordered place.
in the hands of a receiver by Judge
Henry Lurton Of the United States
circuit court last night. Judson Har-
mon, ex-United States attorney gen
eraI, was appointed receiver. He gave
a bond for a total of 100000. Inc
application was made by Lawrence
Maxwell. Jr., a lawyer, on behaH OF
Walter B. Horn. of New York, cfeai-
tor Of both roads. and was agreed 70
by the defendants, in answers aoL!tl-
ting the principal charges Oh IN
solvency.
ceiver for the Cincinnati, Hamilton q
DAYTON. which was filed first, 1t was de
elared that Walter Is. Horn, a resluelll
of New York was q creator 70 inc
amount of S62,9S6.13 for money
loaned. now due and which the de-
fendant had admitted its inability 10
The defendant company was de-
rIared to have been solvent prior 10
INV T. 1903. on which date it came
under a different controlling influence
and assumed large obligations. one
of these was the purchase OF IAV'UOV
shares of Pere Marquette STOCK LOT
-lll
agreement between the defendant ana
the Pere Marquette and the Ioleoo
Railway &, Terminal company, lnVolV-
ing large obligations for terminals a.
Toledo and third, an agreement 10
carry 8 u million dollars bonds issued
bv the Pere Marquette to cover us
purchase of the Chicago, Cincinnati &
Louisville railway
Since July z. 1904, the funded debt
has been increased more than $z5,-
increase IA the
fixed charges Of over $1,000 600 eek
elusive of further annual charges over
S578,0O0 on the lease of the Pefe Mar
Quette), and also the floating DEBT nad
been increased until it exceeds $b.OOO'-
OOO. The defendant was declared to
have no credit. was unable 10 secure
funds and a number of suits by cEedl-
tors were sure to be started within
short time
Fixed charges due or about TO pc
come due amount to 100000, for
which the estimated December earn /
ngs of s1,625,000. not over S0O,V0V
i'm bills receivable, and not more tlldh /
100000 cash were available. The de-
PENDANT company was. therefore. de-
clared to + i'm a state of insolvency
and the plaintiff asked for the protec-
ton of himself and all other creditors
that receiver be appointed The re-
ownership was asked TO include the
lease-hold of the &ere Marquette
An anctllary application was made
by Mr.. Maxwell on behalf OF Waiter
r. Horn, of New York, creditor OF
the Pere Marquette to the extent OF
S345,35S.34. for the appointment OF
receiver also for that property. II
was alleged that on January I, 1905,
there will fall due interest to the
amount of S404,S30 on Pere Mar
duette bonds, for which that com
pany has no deposit or pledge or
mortgage. There are outstanding OBJ
legations of more than S4.0O0.000; the
funded debt on December /, 1905,
was over S54000,O00, in twenty-four
series of bonds. The bonded debt of
the Chicago. Cincinnati & Louisville
is S6.5OO.OO0. which the Pere Mar
quette has assumed but is unable to
pay. tt was further alleged that
$500, 600 was due to the state Of Mich
igan for taxes which the defendant
for the road was needed. but there
was no means OF providing for the
same. All interests were declared to
demand protection and TO unite in this
application.
During the last couple of months
the affairs Of the C. II. & .. and the
Pere Marquette have been very much
i'm the public eye. Eugene thinner
man, who was president of the road
and had controlling interest in it,
sold the property to the banking firm
of II. %. HOlliuS & Co., of New York.
This firm sold ii to J. P. Morgan &
Co. who bought it at a fancy f1gure
to turn over to the Erie railroad.
This transfer was effected and then
the Erie directors found that the con-
dition of the road was not what It
had been represented 10 be They
protested to Mr.. Morgan. and he re-
heved them of their burden and as
sumed all the responsibility of the
purchase of the road from Hollins &.
CO., and he now owns the property.
There were stories to the effect that
Mr. Morgan had been tricked in the
purchase of the road. but these stories
brought forth a letter from Mr.. Nor
gan saying that the purchase was reg
ular and he had not been imposed
upon It has been figured that he
lost about S1O,OOO.00O on the deal.
and this figuring was done when it
was thought that the property was in
good condition. Now that it is shown
TO be insolvent, Mr.. Morgan's loss will
probably be much greater.