New-York tribune., 1906-12-29
MOBILE RECEIVERSHIP.
No ASK ITS DISSOLUTION.
opeer Stories Told in ~, j. 6 Il. c.
Railroad Troubles.

rs " Robinson president OF the Mobile Jack
= Kansas City Railroad Company which on
,.s-,sdsy was placed in the custody OF a receiver
Nsro shancery Court at Mobile said yesterday
s.-.oon that he had not Yet received a copy Of
- nj q complaint and therefore could not dis
- -, he subject OF the receivership. but that
,--ra measures would be taken by the attorneys
= sbe company for seeking a dissolution OF the
,,sysrship He declined 10 comment on any Of
=, points brought out in the current discussion
= ,he roads troubles. saying that they would be
.soroughly covered In the argument its counsel
mid make in support OF their motion FOR the dis
.,rrEe of the receiver.
( re receiver was appointed on the application OF
ambrose Mcneil. Of this city president OF the In
,.-nsronsl Nickel Company; Thomas Morrison, OF
s.,ssurg one of Nr. CaTuegie's young partners
~ yohn Mcleod OF Philadelphia al of whom are
s,,kholders in the Mobile. Jackson & Kansas
nv and slso owners 90 bonds OF the Chicago &
Gss Railway Company. Whioh are guaranteed by the
,r.sGe jackson & Kansas City, On the solvencY of
h ros6 the value q these bonds therefore largely
ss,sn6s The court al Mobile gave fun cons.dera-
~ 10 the question whether or not the application
&C nctioe should Be required in the rece!vership
,-oceesings. and ;he fact that receiver was ap-
rs.n;e5 eK parte application IS regarded By
~ local Interests opposed 10 the management as
shsE1ng ths5 The court was clearly convinced OF
ne souneness of the allegation OF insolvency.
ne history OF the Mobile. Jackson and Kansas
Giy enterprise, as laarned yesterday from q
FvTc
vresting one The road has been from SIS incep-
IN controlled by q group OF men, prominent
among whom are Alexander Mcdonald. ". D.
srsrton and E X. srallo. Its line exterds from
Noble 70 Dsoatur Miss.
A few years $50 Mr.. Mcdonald and his associates
ca1oeived The i1es o. building line nortAward
from Decatur. and formed the city Construction
company for the purpose OF constructing it- They
sso acquired q sixty mile narrow gauge road
ne Chic1Eo & Gulf Railroad. the southern ter
urojsctsd new line. an6 gaze 70 the combined
Tosd the tide q the Chicago & GG8 Railway. tire
rssent length OF which "a about TWO hundred ard
tres miles This road Was bonded for s. ooo6s0 and
Nads were issued from tina 70 tins a section
vss completed
A syu6lcste Vss organised, q which certain Of
ne NcDo-sld party were the managers. 10 under
wife & s11.ct0 q Jhs bonds st 80 and & stock
tOnus OF THIS underwriting Thomas L Chad
harne. r.. and his fT1e26s took about One-half
Several n--Ihs $40. when TIE road should accord
ng 70 schedule, have been completed. Lessrs Mo-
ns1n srd Mcleod accoupanied by Joseph X
choste g. engineer made al inspection of - They
sound conditions very urszrfsfa croTy, and 60 re-
por,sd arrival hack Il New York Mr.. Chad
bourue the-e-pon informed his friends who had
F.e into TIE underwriting syndicate with him, and
thought advisable 10 seek the advice of
counsel as . cle proper course pursue Sullivan
Cromwell we've oG-su-ted. and ths.r advice was.
Is u-5s-sroo6. hat rhe bondEolders sand To-
Fs;hsr and take measures for raising sd6itt1nsl
funds q az amount Sufficient % complete the road
a IL a. unfinished condition Il could earn 10 rev
saue, ans without revenue TIE bonds would be
yzlGeless
About zgo 90 z - bonds E@r= withdrawn. bst
iss cEae-s O: Ire remaining 10000 more os-
sidsa % srt toge-ze-- ard appointed Asssrs
Vcreu Mo--.so1 ard McI.so5 rs e protective con-
ultree These r1s- srcl.e1 70 The management for
tsis.s5 Information Oc1cs-l:lg tAs condition of
he properly E-1 ss to re amount % Shs floating
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