The Norfolk weekly news-journal. (Norfolk, Neb.) 1900-19??, 1908-01-10
GREAT WESTERN RECEIVERS
c. n. r. SMITH AND A. o. STICK
NEY PLACED IN CONTROL.
UNABLE TO MEET OBLIGATIONS

Loss as Result Of Boilermakers' Strike
10 Given as Partial Cause for Flnan
cial Straits Of Rosd--kellogs Issues
Statement.
Omaha, Jan. 9.-Petltions for a re.
ceiver for the property of the Chicago
Great Western railroad in Nebraska
was filed in the United States court In
Omaha this morning but no action has
been taken by the court as yet.
81. Paul, Jan. 9.--Judge Walter II.
Sanborn of the United States Circuit,
court appointed A. ID. Stickney and
Charles III. Il. Smith, both residents Of
St Paul, receivers for the Chicago
Great Western railroad. A. b. Stick.
ney is now the president of the road.
The firm of Kellogg & Severance of
st. Paul was appointed attorneys for
the receivers.
The appointment of receivers fol
lowed the inability of the company to
meet obligations falling due in 1908,
and the failure to secure an extension
of the obligations. Loss as a result
of the boilermakers strike of last fall
is given as partial cause for the
financial straits of the road. 1t was
also pointed out that during the last
ten years the road has spent $4,000.
900 In reconstruction.
The petition for receivership was
filed on behalf of the stockholders
and the finance committee by John A.
Humberg of Minnesota, George p.
Meyer of New York and Ward Cum.
mings and Alex Wallace of Great Brit.
ain. AS soon as the petition for the
complainants had been filed an answer
was filed on behalf of the board of di.
rectors, who voted to become party
to the receivership proceedings.
Attorney KeIlogg's Statement.
In asking for the appointment of re-
ceivers, Mr.. Kellogg said: The cap
ital Of the Chicago Great Western
consists of four classes of stocks, but
two of which need be considered in
the receivership proceedings. These
are the preferred "A and the deben-
ture stock, each of which represented
90 per cent of the original first mort.
gage bonds. The preference of these
two classes of stock are secured by a
trust deed to the Manhattan Trust
company of New York. There will be
default In the payment of these obli
cations Jan. 15," said Mr.. Kellogg.
Further outlining the condition Of
the road, Mr.. Kellogg said that the
Great Western owes $10,653,41371, |
now due or falling due within the next
four years, of which notes to the
amount of $545,0OO have gone to pro-
test.
The sum, exceeding $10,000,0 OO,"
continued Mr.. Kellogg, lis part of the
$19,OO0,O00 spent by the Great West. |
ern in the last ten years in rebuilding
the road. There was due last month |
notes to the amount OF $4,000 and |
there will be due during the rest Of
January notes aggregating G2S3,000, |
with total amount OF obligations duo
during 1908 of s3,342, $3.50"
Mr.. Kellogg further said that tho |
Great Western, which is an Illinois |
corporation, owns in fee without mort. |
gage lines of railroad in Illinois, Iowa,
Minnesota, Kansas and Missouri. 1t |
also owns terminal lease of line
from st. Paul to Minneapolis. In ad |
dition, the Great Western owns all the |
stock Of and operates the Mason City |
and Fort Dodge railroad, line about |
four hundred miles long. This line is |
for $12,000,0OO, 62 per
cent of its cost.
Mr.. Kellogg said that under the |
laws Of the states in which the Great |
Western operates creditors might Sc.
cure an attachment on its property, |
thus wrecking the road and preventing
1t from fulfilling its obligations to the |
public.
Primarily, on this ground, the posi-. |
bflity that it might be prevented |
from performing it's functions as a |
carrier, Judge Sanborn issued |
the order for the appointment of the
receivers. He also gave as an addi- |
tional ground the fact that a judgment |
of $4,000 had already been secured
against the road.