Los Angeles herald., 1908-01-09
RAILROAD
IN HANDS OF
RECEIVER
CHICAGO GREAT WESTERN is
IN BAD CONDITION
FAILS TO MEET OBLIGATIONS
FOR 1903
Judqe Sanborn Of United States Cir.
cult Court of ST. Paul Acts In
Regard to Transporta-
ton Line
BY Associated Press.

BY Associated Press
ST. PAUL Mimi, Jan. s.-Judge Walter
]. Sanborn of the United States circuit
court today appointed A. B. Stickney and
Charles H. F. Smith, both residents OF
St. Paul. receivers for the Chicago Great
Western railroad. Mr.. Stickney is now
nresident of the road. The firm Of KEEL
iogg &. Severance of st. Paul were ap-
pointed attorneys for the receivers.
The appointment of receivers followed
the inability of the company to meet OBJ
legations falling due in 1908, and failing to
secure an extension. Loss from the
boilermakers' strike of last fall Is given
as a partial cause of the financial straits
of the road. It was also pointed out In
the proceedings today that during the
last ten years the road has spent l9,OO,-
900 in reconstruction.
A petition for a receivership was hled
on behalf of the creditors and the finance
committee by John A. Humberg of Min
nesota, George p Meyer of New York
and Ward Cummings and Alex Wallace
of Great Britain.
Directors Agree
AS soon as the petition of the COM
plainants had been filed, an answer was
filed on behalf of the board of directors,
who met today and voted to become
party to the receivership proceedings
In asking for the appointment of re-
ceivers, Mr.. Kellogg said: 1.-THE cap
ital Of the Chicago Great Western con"
sists of four classes of stocks. but two
of which need be considered in the re-
ceivership proceedings. These are pre-
ferred "a and the debenture, each of
which represented fifty per cent of the
original first mortgage bonds. The
preferences of these two classes of stock
are secured by a trust deed to the Man
haitian Trust company of New York
There will be a default in the payment
of t..ese obligations January To-"
Mr.. Kellogg said the Chicago Great
Western owes $40 653. All now due or fall
ing due within the next four years of
which notes to the amount of $545, 600 have
gone to protest.
THE sum, exceeding s1O0OO,OOO," con-
tnued Mr.. Kellogg. as part of the $19-
900 900 spent by the Great Western in the
last ten years. and for the most part in
the last five years, in rebuilding the
road"
Mr.. Kellogg said the Great Western,
which is an Illinois corporation, owns
in fee without mortgage, lines of rail-
road in Illinois, Iowa, Indiana and Mis-
souri,, It also owns q terminal lease OF
a line from st. Paul to Minneapolis. In
addition the Great Western owns all the
stocks and operates the Mason City &
Fort Dodge railroad a line about 4OC
miles long. This line is mortgaged for
$12, 600, sixtytwo per cent of its cost.
The Great Western also owns a lease
of this road, by the terms of which the
Great Western is to guarantee the inter-
| est on the bonds
Owns Other Stock
The Great Western also owns stock of
the Wisconsin, Minnesota g. Pacific,
which is bonded for $5,S11 900. The Great
Western also owns the stock of the De-
Kalb & Great Western, capitalized at
100000.
Mr.. Kellogg said that under the laws
of the states in which the Great Western
operates, creditors might secure an at
tachment on its property, thus wrecking
the road and preventing ii from fulfill
ing its obligations to the public
Primarily on this ground the possibility
that 1t might be prevented from perform
ing its functions, as a common carrier.
Judge Sanborn issued the order for the
appointment of receivers.
He also gave as additional grounds the
fact that Judgment of $4,000 had been
secured against the road