The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1908-01-30

pany, Muncie, Ind, against A. G.
Frost & Company, based upon a note
for $4,000 This bill alleged that A.
G. Frost & Company was solvent; that
he had been engaged in constructing
and financing railroad enterprises, and
that the recent financial stringency
had made it impossible for him to mar
ket his securities advantageously, and
that to conserve his financial interests
it was necessary that a receiver be
appointed.
Receivers Take Possession,
The receivers were notified immedi-
ately Of their appointments, and ar
ranged to give their bonds and take
formal possession of the properties to-
day. President Frost spent the even
ing in the office of the road, in the
stock Exchange building, as did Re
ceiver Seward. Attorney Jacob New
man, representing the holders Of 81
100000 of the bond issues, also was
present. Along in the middle of the
evening Mr.. Frost gave out this formal
statement:
EThe direct cause of the receiver
ship is the fact that the credit Of the
company and the market for it's Sc
curities were injured by the receiver
ship instituted on New Years eve,
and as a result it became impossible
to consummate the sales of bonds,
which had been substantially complet-
ed.
EAfter conferences between the
principal holders Of the company's OBJ
| legations it was decided that receiver
ship would be the best means of con-
serving the property and the interests
Of the bondholders, creditors, and
stockholders.
''There is only about eight miles Of
the road to be completed, and more
than so per cent of this work has been
done. The total cost to complete the
road will not exceed $250,O00.
In the appointment Of the receivers
the court considered as far as was pos
sible. the different interests so that all
parties would be protected.
sit was deemed advisable for the
purpose of protecting large collateral
which had been placed by A. G. Frost
& Company, that receiver be appoint
ed for that firm for the purpose of
protecting it's collateral loans and to
prevent them from being sacrificed,
and accordingly George NJ Seward
was appointed receiver of A. G. Frost
& Company.
Says Dawes Did Not Know It.
Receiver Osborne said last night at
his home III Evanston that he was
sure. Mr.. Dawes had not known Of the
contemplated proceeding for the ap-
| pointment- of q receiver when Mr..
Dawes departed for Washington in the
morning. Mr.. Osborne was surprised
| himself to learn that he had been ap-
pointed receiver. Tt is said that he
was appointed, however, with the idea
that it would meet with the approval
of Mr.. Dawes.
s. talked to Mr.. Dawes this morning
at Ito clock, said Mr.. Osborne, "and
| am quite sure that he did not know
anything about the contemplated ac-
ton or he surely would have mentioned
it. My appointment, I will say, was
surprise to me, although received a
little intimation of it at s 'clock this
afternoon. About 10 o'clock tonight
an attorney called me up and told me
| was appointed. I had gone to bed
early and had to get up to answer the
telephone.
nc'l haven It seen the bill and I don #
know what the allegations are. I lust
came back from the east. I under
stand, however, it was brought about
by the trouble of the Sovereign bank
OF Canada, which went into liquidation
last week. This bank was to finance
| the railroad and when it went into
liquidation it became evident that nav
ments could not be made and receiv-
er would be necessary for the road.
So Mr.. Frost probably thought that
the best thing to do was to apply for
/ the receiver himself The other receiv-
er, | understand, is a Canadian rail
road man..
Kenosha Company Not Mentioned.
notwithstanding the fact that the
Kenosha Electric Railway Company is
one OF the principal Frost companies it
is not mentioned in the receivership
and it is generally believed that the
local line will not be affected by the
change in the management of the
through line. It is certain that the
Kenosha road is a paying proposition
and that it is abundant1y able to take
care Of itself. The cars on the Chica-
go and Milwaukee are running on the
usual schedule this afternoon and there
is nothing in the operation of the line
to indicate any change of management
or any receivership.
The second receivership was not un-
expected among the financial leaders
in Kenosha, as it has been thought for
some time that the recent frouh1oc Of