The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-11-17
CLASH IS COMING
Creditors Make Serious Charges
against DeylIn Trustees.
Say That Santa Fe Has Too
Much Control.
GET PERSONAL ESTATE
Object Said to BE to Boom Value
of Stocks.
And the Stocks Are Owned by
the Santa Fe.
GET PERSONAL ESTATE


That the Santa Fe railroad is max
ing capital out of the advantage which
comes to it by reason of the dual posi-
ton of James Z. Hurley, general man
ager of the Santa Fe and trustee of the
Devlin estate. and A. A. Hurd. special
counsel for the Santa Fe and attorney
for the trustees. is the ugly charge be-
ing made among creditors. of the G. J.
Devlin estate
mr. Hurley will either have to re-
/ sign as general manager of the Santa
| Fe or get cut CT his so5 OF receiver.
That's ali there is to it. We propose
to see that 1t Will be DONE" said one
prominent man connected with the
creditors.
No man can serve. two masters is
the scripturai saying without either
the one or the other master suffering.
/ Creditors claim that Hurley and Hurd
are both naturally cleaving to the
Santa Fe in whose interests they have
served for years and are subscribing
interests Of the Devlin estate to that
of the railroad.
All of this revolves around the jack
SON Walker Coal and Material com
pany. The Jackson walker company,
| a Wichita concern is now occupying
the position relative to the Santa Fe
that the Mount Carmel and the Dew
lin-Miller coal companies did; that is
/ they are supplying the wants of the
Santa Fe railroad for coal. and see
that above all else the demand for
coal which the railroad makes when
coal famines are on. is fulfilled.
There is this difference. however,
| the Santa Fe is practically the sole
owner and in control of the mines
which the Jackson Walker company is
BY a purchase of the bonds Of the
I Crawford county coal company and
the Devlin-M Miller coal company the
mines have passed oyer to the jack
Cor
Fe.
The Jackson Walker company, it is
generally conceded. could not have
swung the financial deal of the size in
volVed in the purchase of upwards of
100000 worth of bonds of the two
coal companies and every one cog
infant of the situation grants this
premise-that the Santa Fe railroad
has put UP the money.
A. c. Jobcs. director of the Santa Fe
railroad and banker at Wichita,
brought the Jackson-Walker company
and the Santa Fe together Later he
which brought about the transfer of
the bonds from the former owners
the Alliance Realty and Securities
company, the Central National and
fact that "a director Of the Santa F'e
was acting in this manner did not
mean anything, but those on the IN
side are Inclined to think differently.
ties company Mr.. Jobes negotiated the
sale of $4,000 bonds of the Crawford
Coal company and $12S,OOO bonds OF
the DeVlin- Miller Coal company, from
the First National he procured $132,-
600 bonds of the Devlin-Miller Coal
company and $4,000 of the Crawford
County Coal company together with
$4,000 bonds. the total issue of the
Galena, Frontenac and Northern rail-
road The Central National through
the same agent, purchased $4,000 in
bonds of the Crawford County Coal
ompany and $4,000 of the Crawford
Devlin- Miller Coal company.
This purchase gives the entire bond
issue of $500 900 of the Crawford Coun-
ty Coal company, and the $3oO,O0O IS
sue Of the Devlin-M1ller Coal company
together with the Galena, Frontenac &
Northern railroad into the hands of the
Jackson w alker Coal company alias
Santa F'e railroad.
All three of these companies are bad
w involved. The Devlin-Miller Coal
company has excess liabilities of $4S1,-
9OS.14, the Crawford County Coal com
pany has excess liabilities OF 1858, SOL,
and the Ga1ena, F'rontenac & Northern
railroad has excess liabilities of $247,-
692. %.
Increase Value of Bonds.
Now to increase the value of these
bonds, the holding of the Santa F'e, it
is the intention to transfer the property
held in the name of 9. JsEDeYlln per-
sonally and valued at 100000 to the
ests representative Of the trusteeship,
say. creditors. This personal property
is the only resource which the unsecured
creditors have in an attempt to collect
the other companies where 1t is claim
ed. this property. belongs according to
the trustees, the assets OF the Devl1n-
Miller coal and the CRAWFORD. coal COM
panies are increased along with those of
other companies represented in the
trusteeship-
unsecured creditors just as well as those
that are secured. The interests of one
are not paramount to those of the 9TH
err" said one Of the unsecured creditors
today.
To further accentuate the charge that
Hurley is acting for the interests of
the Santa Fe more than for the credf-
tors at large this incident IS pointed to-
by those interested:
The Cherokee & Pittsburg Mining
company and the Usage Carbon com
pany properties were being operated up
until the first of June, 1905, undersa
lease and contract by The Mount Car
mel Coal company. T78 former two
companies are owned by the Santa Fee
the directors for the one are the same
as those of the other. 1t is c1aimedl
that the lease and contracts provided
thai, they should be in operation until
the Mount Carmel Coal company had
exhausted the underlying veins of coal
On the evening of May 81, unknown to
Cyrus J. Leland and Walter Reeves,
trustees. the Santa Fe stepped in and
took hold Of these properties. The
Pittsburg, Kansas, papers announced
that the Santa F'e had appointed a
sales agent and notified the superin-
fendent of the mines that It had taken
possession. The news of~this act was
first conveyed to Cyrus Leland. He
verified tit and at once brought proceed
sings to, restrain the Santa F'e from IN
terferinz wit b the trustees
After the grant Of temporary re-
strail1ing order q settlement was eff
sfeeted by which the Santa Fe paid to
the trustees upwards OF. 100000 for
the improvements rnade~on the two