New-York tribune., 1908-01-08
RAILWAY FACES CRISIS.
RECEIPER MAY BE ASKED.
Chicago Great Western NotehOlderS
4Dait Action of Conference.


Western Railway Company will be reached to-
DAY
President Stickney. il Will be remembered.
went abroad about fortnight ago. accompanied
by c. A. Severance. the law partner of Frank
p. kellogg. of Minneapolis, general counsel for
the road. for the purpose of comforting with the
finance committee in London plans for
financing about ss,OoOo0o of gold notes matur-
ing at various dates within the next three years.
OF these s1.5o0ooo fall due this month
Conferences have been reid in London since
Mr.. Stickney's arrival there between repre-
sentatives of the railway company and of the
noteholders. but without decisive result Another
conference will be held there this morning at
which an arrangement may be reached for TAX
ing care Of the 81 100000 notes now at the point
of maturity. If that meeting proves Ineffective
1t is understood here representatives OF the
noteholders pvill go this afternoon before Judge
Walter II. Sanborn, in the United States circuit
Court in St. Paul. where the companys MAN
Offices are and make application for the appoint
Of a receiver.
The Chicago Great Western has author1zeo
common stock of $4,000 0oo of which s44.4e5,195
s outstanding: s3oOoO0o0 per cent cumula-
ve debenture stock. of which S2S,121,OSe has
cen issued: S15OO0o60 per cent preferred A
tock of which S11 .336.s00 is outstanding, ana
% 103 $40 out of a total authorized issue or
,o4.Oo0o0o 4 per cent preferred stock There
are no bonds secured by mortgage The note
issues each bearing per cent interest aggre-
gate SIS 4o1 S4S in amount. of which S3,342,o4o
mature this year. S4.O69.061 in 1909 S56,727 in
1910 S9oo ,o73 in 1911 and S24.242 in 1872
The annual report for the fiscal year ended
June so last. showed gross earnings of S9.139.-
os1. operating expenses of S6.5S3.S0S and net
earnings of S2555 219 the ratio Of operating
penses earnings being high. 72-04 per cent.
t7Ie flaa-1 cha
including S437, JOY for interest on loans, there
remained surplus of 81, ,459.010 over all charges
prior the per debenture stock Out of
this surplus the full interest paid the
debenture stock and dividend of per cent
paid on the preferred A stock. which is entitled
20 non-cumuIative dividend not exceeding
per cent a year.
The securities Of the company. which are held
mainly in England. have within the last few
years shown large shrinkage in market value.
The common stock closed yesterday on the New
York Stock Exchange at 4 In 1902 ii sold a
high as S5. In the same year the preferred A
stock. which closed yesterday at 20. sold at
sei4 and the preferred at 51s4. against SIS
yesterday The notes for which provision is
being sought to be made issued in sue
cessive years. beginning in 1908.
The Chicago Great Western. perhaps owing TO
its foreign control has always been free from
policy of rate cutting which aroused against it
the antagonisn OF the other systems in its ter
ritory- Since the enactment of the railway rate
law its privileges in this direction have been
greatly curtailed, and, with the other lines in
the states in which il operates not disposed to
cooperate with it. there has been talk of the
Chicago Great Westerns passing into the con-
troll of the Canadian Pacific, which itself is. of
course not under the authority of the Inter
.--sz- III
by lowering rates on its own part of a through
haul, virtually cut rates between the Northwest
and Chicago by utilizing the Chicago Great
Western and could thus make serious inroads
on the business of the American transconti-
mental lines. AS noted recently in The Trib-
una there has been discussion among men iden-
lifted with the two roads as to the practical
bility of absorption of the Chicago Great West
ern by the Canadian Pacific. and it is believed
in Wall Street that such a move Is entirely
probable as an outcome of the present enbar-
rassment Of the Chicago Great Western
The system operated by the Chicago Great
Western Railway Company has a total length
Of 1,414 miles, and consists of a main trunk
from Minneapolis and st. Paul southwark,
branching into lines to Omaha, Kansas City and
Chicago The Mason City Fort Dodge Rail-
road and the Wisconsin, Minnesota & Pacific
Railway operated under lease.
The Chicago Great Western was chartered in
January, 1892, as successor to the Chicago, st.
Paul & Kansas City Railway Company. Its
present officers are: President, A B. Stickney;
vice president, Ansel Oppenheim: second vice
president, s. c. Stickney; third ice-presdent,
L. S. Case: general counsel r. B. Kellogg. The
directors are the Messrs. Stickney, Mr.. Open
helm. Frederick Weyerhauser NJ. d. Flower, II.
L. Fletcher, Thomas II. Wheeler, ]. W. Lusk
and p G. Wight. The finance committee with
which President Stickney has been comforting in
London. is a body of five men elected annually
from among themselves by the debenture and
preferred stockholders. meeting Jointly.
ST Paul, Jan. f.-Rumors coming from the East
be asked for the Chicago Great Western Railroad
were not only denied by officials of the road in
St Paul, but counter rumor coming from
sources practically official. in circulation this
afternoon that A B. Stickney. president of the
lang concerning the payment of the per cent gold
notes due in March.
When S. c. Stickney, vce-president and general
this latter he refused to confirm or deny
the report, saying however: The IS prob
ably correct
sger Stickney said The Associated Press he had
knowledge that such step contemplated
and that you may deny the rumor, far as L
am concerned"
r. G Wight secretary of the Great Western,
not think such a step could be taken
iS be Sajd