New-York tribune., 1908-01-09
RECEIVERS APPOINTED
CHICAGO GREAT WESTERN
Il. b. Stickney and c. II. f. Smith
Named an st. Paul.

St Paul, Jan S.-Judge Walter H Sanb rn
of the United States Circuit Court appointed
a B Stickney and Charles H F. Smith, both
residents OF St. Paul receivers for the Chicago
Great Western Railroad this afternoon A B.
Stickney is the president of the road. Kel-
logg & Severance. of St Paul were appointed
attorneys for the receiver
The appointment OF receivers followed the in
ability OF the company TO meet obligations fall
ing due in 1905 and the failure TO get an exten-
sion OF the obligations. Loss as a result of the
boilermakers strike Of last fall is given as a
partial cause for the financial straits the road.
II was also pointed out in the proceedings this
afternoon that during the last ten years the
road has spent S19.000000 in reconstruction.
The petition for a receivership was filed
behalf OF the stockholders and the finance com
mittee by John A Humberg. OF Minnesota:
George p Meyer Of New York, and Ward Cum
mings and Alexander Wallace. of Great Britain.
Stiles ". Burr. CT St Paul, appeared at
torney OF record for the complainants and
Frank 3. Kellogg. Of St Paul. made a state
to the court of the condition Of the road
and the grounds on which receivership was
asked
a soon the petition Of the complanants
had been filed filed on benaf OF
the board Of directors, who met this afternoon
and voted 10 become a party to the receivership
proceedings
IN asking Tor Ine appointment OF ISSeiNSAS -A'-
kellogg said that the capital of the Chicago
Great Western consists of four asses Of stock.
only two OF which need be considered in the re-
ceivership proceedings. These are the preferred
A and the debenture stock, each OF when rep
resented 30 per cent of the original first mort
gage bonds
The preferences of these two classes of stock
are secured by trust deed TO the Manhattan
Trust Company OF New York There Will be a
default in the payment of these obligations on
January i, said Mr. Kellogg
Further outlining the condition of the road,
Mr. Kellogg said that the Great Western owes
SlO6l:3 413 a. now due falling due within the
next four years, of which notes to the amount OF
S545GO0 have gone TO protest
The sum exceeding S10,oO0,oO0, said Mr. hei-
logg. is part of the S19000,0o0 spent by the
Great Western in the last ten years in rebuild
ing the road New steel has been laid, double
tracks have been built, grades have oeen re-
duced and new bridges and terminals have been
constructed. There were due last month notes
20 the amount Of fJ0.ooo and will be due dur
ing the rest OF January notes aggregating t2S3-
POO The total amount OF obligations due our
ing 1905 is So 3425i5 10
~ Kellogg said that the Great Western,
which is an Illinois corporation. owns in fee
without mortgage lines of railroad IN ILLINOIS,
Iowa Minnesota Kansas and Missouri 1t also
owns = terminal lease Of line from 81. Paul To
Minneapolis.
In addition the Great Western owns all the
stock OF and operates the Mason City Fort
Dodge Railroad. a line about four hundred miles
long This line is mortgaged for S12vcooro
~ per cent of its cost. The Great Western also
has 4 lease of this line, by the terms Of which
-be f,rea. Western is to guarantee the interest
On the bonds The Great Western places in a
trust fund 90 per cent Of the joint earnings OF
-he Great Western and the Mason City & Fort
Dodge Out Of this trust fund the Great west
ern paws the operating expenses OF the Mason
Civ road the remainder Of the trust fund go
ing 10 guarantee the future interest on the ST.
100000 bonds. The Great Western, however
has the use Of this accommodating interest fund
and there is now in the trust fund S1,2S9,623
The ownership of the Mason City road. Mr. hel-
logg pointed out has thus been advantageous
10 the Great Western
The Great Western also owns stock under SIM
liar conditions Of the Wisconsin. Minnesota &
Pacific which is bonded TO the extent OF So
S1Ie0o Fifty per cent OF the joint earnings
OF this road go into the trust fund IN WHICH
there is now available S4y9-23S-
The Great Western also owns the stock Of the
T,e.aIb & Great Western. capitalized at S1o0ooo-
1r- kellogg pointed out that under the laws
n r,os1 of the states in which the Great West
ern operates creditors might get an attachfllehl
on its property. thus wrecking the road ana
r--e,-en,irg il from fulfilling its obligations TO
The public
Primarily on this grourd-the posslbiA1y llaI
=, might he prevented from performing its func-
-f,r,s as a common carrier-Judge Sanborn IS
s,,ed an order for the appointment Of the re-
oe5ver He also gave additional ground
-ha fact that a judgment OF $4,000 had already
been obtained against the road
= Is understood herz that the issue OF hrst
-----,.ge bonds will T,roba bly, be for S20.0ooooo.
T. 7,oirz deemed desirable 10 raise suf1cleht
e,,-ds for double tracking the system ana for
,,-sl,4rp other needed betterments as well as
,,-ovs5ire for meeting the unsecured indebted
-ees The English security holders, who are
,- -arortad As favorable TO the execution OF q
7-,,--gaee on the property, have always III the
st o,,r,osed that policy. and as recently as last
u-in-er declined to sanction the issuance OF hrst
,,-,,a7e t.nds Mr. Stickney Will be mere
,,-;,bir : fortnight and until his arrival no a'-
.5o,, ,.,I1 ne taken in the direction selecting d
,--,-s-,5 ,5za-j.n committee or drafting reoIeah-
+za,5o, rlan 1t is thought not unlikely thal
49, -,1., may include q small assessment upon
the stockholders.
-rhe troubles OF the road are altrIou'eu O'
non identified with il in part TO the ullaNoi
ssi. nancy conditions which have prevailed loI
several months and largely also TO the eIiece
,,, the svstern's earnings Of the operation u
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