The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1908-07-24
MEETING MONDAY IN COURT
HoUsE-nIAJORlTY OF CRED
ITORs REPRESENTED.
Suggestion that Road be Sold for
Junk Arouscs Hostility-Would
BE Calamity to City.

Junk Arouses Hostility-Would
BE a Calamity to City.
! At the meeting of the creditors OF
the Crouch Lines on Monday, the
majority were from Rapid City and
it was decided that to permit the
road to be sold for junk and torn
up would be calamity to the city,
and to insure the future operation
of the road movement was started
looking toward the purchase of the
property by the local creditors, with
some local friendly outside assis-
| tance.
James HALEY, president of the
First National Bank; George Schnei-
der, cashier of the Pennington Coun-
ty Bank, and H. w. Hinrichs, CASH
ier of the Security Savings Bank,
were appointed as trustees for the
local creditors and a meeting called
Tor Tuesday evening, when arrange
ments for the formation of corpor-
alton will be perfected.
The circuit court room was we'll
filled when Receiver G. o. Bailey, of
Sioux Falls, called the creditors to
order, and stated the object of the
meeting.
In order that the creditors of the
road and their representatives might
be fully apprised of the roads real
financial condition, Receiver Bailey
submitted an itemized statement in
which it was shown that there exists
receivership liabilities approximating
S31G ,024.59, of which about $780,
600 was incurred in repairing the
road after the storm of June 70,
1907, which washed out &C out of
lO5 bridges and miles of track be-
tween Rapid City and Mystic.
The heaviest creditor of the road
is the Burlington railroad, which
holds receivers certificates and
claims amounting to about $4,000.
The Northwestern, Denver & Rio
Grande, Milwaukee, Northern Pacific,
Southern Pacilc, Santa Fe and Colo
rado Fuel and Iron Co., are also
found in the creditors list. The in
debtedness to the railroads consists
Of interline freight and passenger ac-
counts and freight equipment per
diem charges.
Charles D. Crouch, former presi-
dent of the road, is a creditor to the
amount of about $16,5OO, but an
effort will be made to offset that by
charging to his account money
which, it is alleged, he wrongfnlly
diverted from the railroad to the
Standard Smelter Company, now
bankrupt.
Two plans of reorganization were
suggested by Receiver Bailey: that
the bondholders either pay up the
receivers Indebtedness and take the
road, or that the receivership credi-
tors form company and own and
operate the property.
In closing, Receiver Bailey stated
that to capitalize the road at any
thing like what it was before would
be folly and that the capitalization
should be fixed at a sum, between
S500,0O0 and 100000, on which
the road can earn dividends over Its
operating expenses and cost of main
| tenance.
Hon. N. G. Griggs, of Lincoln,
ne praska, was present representing
the Chicago, Burlington & Quincy
Railroad Company, and, upon invita-
ton of Mr.. Bailey, he briefly ad-
dressed the creditors. Mr.. Griggs
said in part:
Some time ago the Burlington Of
hclals in Chicago decided that we
would not intervene in this receiver
snip or the sale. The Burlington has
no desire to take charge of the road
its only desire being to get it's money
out and help the rest to do the some,
The Burlington has no intention OF
buying the road and holds out NO
nope that it will bid on the road at
any price.
presume the road will have to
be sold at whatever price it will
bring, but at this time it is very
difficult to raise money for new rail.
roads. It might have been that =.
the times were different, the Bur.
llngton might have looked at the
matter different, but now we are no,
spending dollar that we don't have
| to.
IF the road is sold for what 1t will
bring, we will be a large loser witt
the rest Of you. But let me insis,
that SO far as the Burlington is con
cerned you must cut out the though,
of purchase"
After the trustees for the receiver
ship creditors had been appointed
and 1t was decided to go ahead ant
try and make the line a purel,
Rapid City enterprise, Mr.. Grigg
said:
The Burlington is greatly inter
ested in the move you are making
Z Nothing would please us as much a
to have Rapid City people own tn,
road. "Tis only a few miles from tn
present terminus Of the McLaughlil
road into the coal fields and l hay
every assurance that that road vii
be completed In the near future