The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1908-01-11
GREAT WESTERN ROAD .
IN RECEIVERS HANDS
LONDON MEETING DECIDES 70
MAINTAIN STATUS QUO
FOR A TIME.
NEED PERIOD TO
PREPARE A BOND
Move Is Temporary, During Weeks
While Mortgage to Cover lndebt,
edness Is Being Arranged For
Action at St. Paul.

London. Jan. 9.-The expected
meeting Of the noteholders Of the
Chicago Great Western Railway Com.
pany with A. B. Stickney, president Of
the company, was held Wednesday
afternoon. 1t was decided to APP
point receiver for the company to
maintain the status quo during the
time necessary to prepare a first mort.
gage bond covering all the indebted.
ness Of the road and to obtain vote
Of the stockholders on this meas
ure. There were many noteholders
at the meeting. Application for the
creation of temporary receivership
was made to a circuit court in the
United States without delay.
Notification ls Issued.
Subsequent to the meeting the fol-
lowing notification was issued by the
London agency Of the company:
"At a meeting held Wednesday 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, it has
been decided by the London finance
committee that application should be
made to United States court for the
creation Of a temporary receivership
until such time RS the company shall
have obtained authorization from it's
stockholders for the issue of first
mortgage bonds to an amount suffi-
cient to finance it's requirements"
Creditors Ask Receiver.
st. Paul, Mimi, Jan. 9.-Frank KEEL
logg and other attorneys for the
creditors of the Chicago Great West
ern railroad had a conference with
Judge Sanborn Of the United States
circuit court on Wednesday and
Mr. kellogg appeared before Judge
Sanborn in the afternoon with
application for a receiver for the Chi
cago Great Western railroad.
Judge Sanborn appointed A. b..
Stickney and G. A. j. Smith of st.
Paul receivers for the Great Western
railroad. Kellogg and Severance
were appointed attorneys for the re-
ceivers
Gives Reasons for Action.
The following statement regarding
the reason for the receivership was
given by Mr.. kellogg Wednesday
afternoon:
"The receivership is not tho re.
suit of the action of any single cred
flor or stakeholder, but has been
taken after careful consideration by
all parties Interested, many of the
creditors and the board Of directors.
The immediate reason for the receiv.
ership was the failure to obtain an ex-
tension Of the notes now due and
coming due during 1908 which were
given for money borrowed for tho
improvements and betterments of
tho property. The company has spent
about $19,00O,00O during the past ten
years in lowering grades, construct
ing new bridges, culverts, acquiring
additional terminals and equipment,
double TRACKING, and in general i'm
provements and betterments of the
railway, and has outstanding notes
for this purpose to the amount of
about s10,0OO,0OO.
Unable to Finance Road.
During last spring plan for
financing the road was agreed to by
the board Of directors and the finance
committee, but owing to the strin-
gency in the money market and other
unforeseen causes. they have been I'M
able to carry it out.
"The earnings of the company were
very materially decreased during the
autumn by strike at the shops,
which tied up the equipment. The
strike was won by the company, but
the damage had been DONE
'"rhe receivership will be tempo
rary pending the time required to
carry through the plan of financing
The road. Everything possible has
been done to avoid a receivcrshiD"