Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-01-08
CHICAGO GREAT
WESTERN RECEIVER
At Meeting Of Note Holders With
A. B. Stickney it Was Decided
To Appoint One.
TO MAINTAIN STATUS QUO,
Application TO be Made to United
States Comt--person to be Sc
iccted Not Decided ON.

London. Jan. S,--The expected meet
Great Western company with a. Is.
Stickney president of the company was
held this afternoon. II was decided to
appoint receiver for the company to
maintain the status quo during the
time to prepare n first mortgage bond
covering all the Indebtedness OF the
road and to obtain a vote OF the stock
holders OH this measure.
There were many note holders at the
meeting.
Subsequent to the meeting the fol-
lowing notification was issued by the
London agency of the company:
AT meeting held today of some
of the holders of the Chicago Great
Western Railway notes which mature
shortly, the president Of the company
announced that in order To maintain
the status quo. IL had been decided by
the London finance committee that APP
pltcatioa should be made to a United
states court for the creation of a tenn
porary receivership until such time as
The company will have obtained au-
thorization from its stockholders for
the issue of first mortgage bonds to an
amount sufficient to finance its require
ments.'
SELECTION NOT MADE.
st. Paul. Jan. S.--Frank kellogg ana
other attorneys representing the cred
nors OF the Chicago Great Western
railroad had conference with Judge
Sanborn. OF the u. 8. circuit court,
this morning, and al it's close Mr.
heilogg announced that he would APP
pear before Judge Sanborn this after
noon with application for receiver
Tor the Chicago Great Western rail-
road.
we have not yet decided who viii
be the receiver said he. las that will
come up when the application is pre-
scented in court. We have merely de-
cided that the receiver shall be asked
for, as II had to come sooner or later"
The following statement regarding
the reason for the receivership was
given by Mr.. Kellogg this afternoon:
The receivership is not the result of
the action of any single creditor or
stakeholder but has been taken after
careful consideration by all parties in
terssted, many of the creditors and the
board of directors. The immediate
reason for the receivership was the
failure to obtain an extension of the
notes now due and coming due dur
ing 1908. which were given for money
borrowed for improvements and bet
terments Of the property.
The company has spent about s19.-
100000 during the past 10 years in
lowering grades. constructing new
bridges, culyerts. acquiring additional
terminals I'd equipment, double track
ing. and in general improvements and
betterments of the railway and has
outstanding notes for this purpose to
the amount OF about $4,000, 900 Dur
ing last spring a plan for financing
the road was agreed to by the board
of directors and the finance committee.
but owing 10 the st.ingency In the
money market and other unforeseen
causes. they have been unable to car
ry 1t out.
The earnings of the company We're
very materially decreased during the
autumn by strike al the shops which
tied up the equipment. The strike was
won by the company but the damage
had been done.
The receivership will be temporary
bending the time required to carry
through the plan of financing the road.
Everything possible has been done to
avoid receivership. but 1t could not
be prevented"