New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-01-01
RECEIVERS OUSTED.
H., jake. OFFICERS BACK
Action of Chancellor Superseded
Pending appeal in alabama.

Mobile, Dec. S1.-F. z Dewey and j. Z.
Dantzler. who were recently appointed receivers
of the Mobile Jackson & Kansas City Rail-
road, were to-day ousted from possession OF
the property on an order issued from the Chan
Gerry Court. The action. supersedfng the action
Of December %. was due to the fact that
application for an appeal was made 20 the SD
prene Court The bond IN the was txed
at 100000. The old management. which was
oustcd Wednesday night last. has again
sumed charge of the property.
Those made parties to the bond the Mo-
bile Jackson & Kansas City Railroad COM
pany. ". D. Stratton. Bird NJ Robinson, Alex
! ander Mcdonald, r. ". Jones. jr.. Charles 3,
Levy E, q. Jackson. Julian W. Whiting. Will
lam H. Mcintosh. Charles D. WiIoughby.
Thomas F. whittelsey. Edmund K. stalIo and
the Alabama Securities Company principals.
and the American Bonding Company. Of Balti-
more as surety. The order ousting the receiv-
ers Is signed by a majority OF the bondholders
! of the road and approved by Carl Holzborn,
| register IN chancery.
Ex-Judge John F. Dillon and William Hepburn
Russell. of counsel for the Mobile, jackson &
Kansas City Railroad Company and the Gulf &
Chicago Railway Company and a large amount
OF the bond and stock holders and general cred
itors Of both railroads yesterday out the fol-
lowing statement:
The reesivsEship for the Mobile. Jackson 8
seeded by an order nom the court appointing The
receivers we're appointed at Mobile Without any
Of AMY ns Kind an any
ready to ni NEE. ali ita iiabaiss solvent anu
nv tss s snow Is Claims
against the railroad company as follows: ons mort.
:oei G ssT value Ia Supply ea
which, We are advised. were purchased for the pur
The above facts speak for themselves. and coun-
more than state them In order to Justify the claims
OF the officers OF the company that this is a mar
severely condemned. by press ana public as
terest throughout the tinted states
Philbin. peekEian & Menken. counsel for the Eng
OF 70 per cent Of the issue Of bonds Of this road
Rssa WaS o. res eEn9s over Se tHs 500 IN bSae
alone OF both railroads. are heartily in sympathy
and have every confidence in their integrity and
ability and Tssa5 y tf he and 16 @
basis whatsoever, IN fact They have knowledge
governing this entire property, and OF the untring
energy which has been devoted by the prese>t off,
GERS toward its successful development
On the appeal a decision IN which may not Be
handed down within three months. the
Supreme Court OF Alabama will be restricted 20 a
review OF the allegations IN the bill or complaint
which the receiverShip was ordered ana tno
specific subject FOR its determination will be
whether or not the Chancellor in the exercise Of
the judicial discretion vested in him. justified
IN appointing receivers. II the Supreme Court up
holds the Chancellor's action. the receivers will be
renstated: IL 1t disapproves that action, the man
agement Will remain in possession
The management could have taken another course
than that which it elected 10 pursue. IL polluted
out yesterday. II could have applied for an order
vacatng the receivership. which would have in
volved the fling by II OF answering papers. IN
which its side of the controversy would have been
set forth; and appeal from such order lis
statements well those OF the complaInants
would have been received by the higher court.
Why that course not taken Is not clearly IN
derstood by those favoring the receivership and IL
not mentioned in Judge Dilon's statement.
Interest on the bonds of the Mobile. jackson 81
Kansas City Is payable tomorrow at the Colonial
Trust Company. and the bonds OF the Gulf 4
Chicago at the Knickerbocker Trust Company. A.
the oices of both OF these institutions IL was said
late yesterday afternoon that funds to meet the
interest payments had been received. There Ia
reason to believe, however. that the money may Be
supplied by the opening Of business tomorrow.