New-York tribune., 1906-12-28
MOBILE ROAD TANGLE.
IN HANDS OF RECEIVER.
Yet President of Company Says 1t
Can Meet Obligations.

: receivership was applied for in Mobile on
Wednesday evening for the Mobile. Jackson &
Kansas City Railroad Company. and the Chan
Gerry Cour; appointed one OF the receivers F.
Z Dewey. who in the latest published list ap-
pears director OF the company F. ]. Lis
mar & Co. representing large amount OF the
S4p00oO0 per cent first mortgage bonds. the
serni-snnuaI interest on which is pavable in
january AT the ofioe OF the Colonial Trust Com
r.any. Of this city. have invited all holders 10
communicate with them. with a view to taking
measures for the protection Of their interests
M1st C. ;he bonds are held abroad il Is said
and many are owned IN this city
Btro 81 Robinson, president Of the road vAs-
terdaT afternoon issued the following statement:
I,hs a2poiatment Of temporary receivers in
Ai2nl;-'a .or me Mobile. Jackson & Kansas City
tZal-Hoaa IoInpany was made without any notice
O. lAuiIl@lloh 10 any one connected with the
COMPANY. tne proceedings being entirely ex
pare Jp 10 this hour the officers Of the com
pany have received no information og the nature
q ne proceedings or the reasons for the ap-
pOiuru2ent Of receivers
The company Is not IN default IN the pavment
o. any interest due the bondholders and is nor
n default in the payment Of anv creditor OF
any character or description. II has met eyArv
ouAEauon promptly, and al preparations had
peel nlhoe 10 pay The interest due on the bonds
a me Mobile. Jackson & Kansas CITY Railroad
SonPahy and the Gulc & Chicago Railway
Company on January ]. but We now under
STAND tAat the court has upon these * parta
proceedings. enjoined the disbursement of anv
or the funds Of the company
The company. together with several largo
bon.folcers ana other creditors. have ernploved
eminent counsel. headed by Judge John ? Di7-
ION. q l'llon q Hubbard this citv 70 take
immediate steps toward the removal Of The ra-
celFers ana the restoration OF the prouerrv ~
tle management, so that the operation Of +ba
FI'lei Ties OF tAe company will not be inter-
sCpted and its obligations met as tFay- mature
IhaI The proceedings have been brought b1-
certain interests hostile the railroad is rna4a
eTlGent ny the fact that one Of the recaf-ers
r r Dewey. IS a discharged emplove and on
Ger o1 the company, and the originator Of -ba
pan Is a FORMER general counsel Of the Gulf &
Chicago Railway who was heretofore reIiay-e5
q any connection herewith
The earnings Of the railroads are moro .ba,
slIlcleFt 70 meet all operating expenses nd
interest on lis obligations and are very rspi5Iv
increasing. t--S
The Mobile. Jackson 6 Kansas CITY roa5 ~
tends from Mobile, on the Gulf 10 Decatur
Miss, l6I miles, and operates under lease tba
CUR & Chicago road. from Decatur 10 NTfd51A-
ton. Tenn, 203 miles. The company has. 81 600 !
Gp0 stock. The stockholders were ~ re,-e ta,.
E meeting here next month TO act on : rro-o-
sinon of the directors 10 create second mort
gage A. various times there have been ranor+.
thar the road was TO he sold 10 one or other %
ths large systems. Among the directors a, a.
ettion 10 President Robinson are =
MCDONALD Of the Standard Oil COMPANY ~ n
etT7atton. 2. ". Jones' jr., president Of the o.
enlal BANK. of this city: z K Stallo Charles
+ Levy and c. >. WilOughby. Most OF The a.
Tec'ors 81 ne railroad are also directors OF the
Interstate Securities Company, Of New YorIx
which was formed in 1903. and which IS SAID n
nave placed good many Of the Mobile Tacl--
e01 d Kansas CiIv's bonds