The morning journal-courier., 1908-01-09
RECEIVERS FOR GREAT WESTERN Railroad Unable to Meet or to Secure Extension of Ob- legations Due in
 1908.
MANY CAUSES FOR STRAITS
Fear of Creditors Wrecl1ing Road by Securing Attachments on Prop erty Actuated the Ap-
 pointment.

St Paul, Minn., Jan. S.-Judge san born of the United States circuit court to-day appointed A. B. Stickney and Charles H. F. 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 receivership followed the in ability of the company to meet obliga- tions 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 a partial cause for the financial straits of the road. It was also pointed out in the proceedings this afternoon that dur ing the last ten years the road has spent $19,000g000 in reconstruction.
 The petition for a receivership was filed on behalf of the stockholders and the finance committee, and as soon as 1t had been filed an answer was filed on behalf of the board of directors.
 In askiAs for the appointment of receivers MT. Kellogg, of the attorneys for the compliments, said the capital of the Chicago Great Western con sists of four classes of stock but two of which need be considered in the re- ceivership proceedings. These are the preferred "A' sand the debenture stocks, each of which represented 50 per cent. of the original first mortgage 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 those obligations Jan uagy 15, said MT. Kellogg.
 Further outlining the condition of the road, Mir Kellogg said the Great Western owes $10.653,419.71 now due or falling due within the next four years, of which notes to the amount of s545,0o0 have gone to protest.
 The sum exceeding $10,0oo, 900, said MT. Kellogg, is part of the $19,000, ,000 spent by the Great Western in the last ten years in rebuilding the road. New steel rails has been laid, double tracks have been built, grades have been re- duced and new bridges and terminals have been constructed. There were due last month notes to the amount of f50,000 sterling and will be due dur ing the rest of January notes aggre- gating f2s3,O00 sterling. The total amount of obligations due during 1908 Is $S,342,545.45.
 MT Kellogg declared the Great Western which is an Illinois corpora tion, owns in fee without mortgage, lines of railroad in Illinois, Iowa. Min inesota, Kansas and Missouri. r. also owns terminal lease of a lint from Sit. Paul to Minneapolis.
 In addition the company owns all the stock of and operates the Mason City slnd Fort Dodge railroad, line about 400 miles long. This line is mortgaged for 100000, sixty-two per cent of its cost.
 The company has lease of this line, by the terms of which it is to guarar- tee the interest on the bonds. Tho Great Western places in a trust fund sixty per cent. of the joint earnings of the Great Western and the Mason City and Fort Dodge. Out of this trust fund the Great Western pays the oper- ating expenses Of the Mason City road, the balance of the trust fund going to guarantee the future interest on the s12,0o0,00O bonds The Great Western. however, has the use of this accumulat- ing Interest fund and there is now in the trust fund s1,2S9,629. The owner ship of the Mason City road, Mir. Kel- logg pointed out, has thus been ad- yantageous to the Great Western.
 The Great Western also owns stock under similar conditions of the Wis consin, Minnesota and Pacific, which is bonded to the extent of s5,Sl1 o0O Fifty Der cent. of the joint earnings of this ( 'oad go into the trust fund in which there is now available s499, 23S. It also owns the stock of the DeKalb and Great Western, capitalized at s1O0,Ooc
 MT. Kellogg pointed out that under the laws of most of the states in which the might secure an attachment on it's property, thus wrecking the road and preventing it from fulfilling it's obli gations to the public.
 Primarily on this ground-the pos sibility that it might be prevented from performing its functions as a common carrier-Judge Sanborn issued an order for the appointment of the receiver. He also gave as an additional ground the fact that judgment of S7O Soo had