The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1908-01-30
Receivers Named for Chicago &
Milwaukee Electric Road
in Chicago on Monday
A. C. FROST sayoRs PLAN
Kenosha Road Is Not Mentioned in Re
ceivership and 1t Is Not Thought
That 1t Will Be Affected by
the Court Action

railway company for the second time
within month went into the hands
of receivers yesterday. This time it
is friendly receiyership in the court
Of United States Judge Grosscup Of
Chicago, instead Of the unfriendly af
fair in State Judge Tuthlll's court q
few weeks ago.
A. G. Frost & Company, the concern
formed by the president of the rail
way to finance it's construction, also
was placed in a receivership.
Upon allegations that the railroad
lis financially embarrassed and cannot
raise sufficient money to complete It's
line into Milwaukee, Judge GrosscuE
was asked late in the afternoon tt
appoint receivers.
For the railway the court appointed
| W. Irving Osborne, vice president OF
the Central Trust company; D. B
Hanna, vice-presidet Of the Canadian
Northern Railway, Toronto, Can, anc
Albert G. Frost, president of the Chi
cago and Milwaukee Electric railroad
company. AS receiver for A. G. Frost
& Company, the court appointed
George M. Seward, broker who form
erly was secretary Of the railway com
pany.
Due to Canadian Bank Failure.
The embarrassment Of the com
panv's finances is said to be due per
marily to the failure Of the Sovereign
| Bank of Canada, located at Toronto
q couple of weeks ago. At the time
the receivership in Judge Tuthill :
court was dissolved by compromise
the Canadian bankers undertook tt
sell an issue Of $250,000 bonds, the pro
ceeds Of which were to be used in com
pleting the construction Of the road
into Milwaukee. When the Sovereign
bank, which was the principal Cana
dian interest in the road, went under
it was found impossible to raise the
money.
In other quarters also President
Frost found it impossible to sell the
company's bonds. He says it is be
cause investors were frightened by the
charges growing out of the Tuthill re-
| Ownership. 1t therefore was decided
to put the road in the hands of re-
ceivers, who will issue receivers
certificates to the amount needed to
complete the line.
T.iahi1i+ioc or Enn mn
The liabilities Of the road total
about $15, 100000 There is an issue
of $10,000,O00 bonds on the Wiscon.
sin division and $5,000,0OO on the Hi.
nois end Of the line. Then there is
a floating debt Of 100000. Frost as.
serts that the assests, which are the
road and it's equipment, represent
more than the liabilities. The receiy.
ers will take an inventory of the
properties at once.
Whether complications will result
from the new receivership almost on
| the heels of the dissolution of the
former one is a matter Of speculation
In the compromise as result Of
which Judge Tuthill vacated the state
receivership, Charles G.. Dawes was
appointed to look into the charges of
| irregularity in the financing of the
road 1t appears that the books OF
the corporation have not been produc-
ed and that Mr.. Dawes has been given
no opportunity to make his investiga-
ton The appointment as receiver of
Vice President Osborne Of the Central
Trust company, Of which Mr.. Dawes
IS president, is regarded, however, as
an earnest of the carrying out of this
agreement in effect Mr.. Osborne will
represent Mr.. Dawes and other bank
ing interests involved in\ the situation.
The receivership was quietly arrang-
ed late In the afternoon in JUDGE
Grosscup's court. The bill was fled
ana accommodatingly suppressed bv
the clerk of the court, and then tho
Judge named the receivers. The com.
plalnants were represented bv Attor.
ney Howard Carter and the railway
company and Mr.. Frost by Attorney
fayette s. Munro
Court Acts on Four Suits,
There were four suits-one at law
ana three in equity. The first was >
Judgment taken by Otto R. Hansen
against the Chicago and Milwauk 90
Electric railroad company Of Illinois
on note for $4,000 This iudomanf
was taken after a trial in which inv
was waived.
Upon this judgment a bill was
founded asking for receiver Of the
defendant railroad upon allegations Of
Insolvency and consisted of conserving
the assets. The bill was answered bv
the defendant railroad company and
the three receivers were appointed with
leave to file bonds in the sum of $50
600 in five days.
A bill was also fled blythe SOVEREIGN
Bank Of Canada against the Chicago
and Milwaukee Electric railroad com
pany of Wisconsin upon note Of
$4,000. The bill alleged insolvency.
The 0rdQrs