The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1908-07-09
Foreclosure Is Facing Lines of
Electric Railway Owned byA.
C. Frost in Wisconsin
KEN0SHA LINE NOT AFFECTED
It is Said that Bond Holders Will Con-
troll the Roads and Stockholders
May Realize Little for
Money Invested

Foreclosure proceedings probably will
be started within few days in the
United States Circuit Court in Milwau-
kee against the Chicago and Milwaukee
Electric railroad of Wisconsin, by the
holders of the bonds issued by that cor
.poration, which was promoted by A. G.
Frost. U.s..
The proceedings will be started by
the. bondholders and will result, it is
asserted, in the ultimate control of the
road by bondholders. The stockholders
it is believed will, lose the entire
amount of their investment, as it is
unlikely that a forced~sale will realize
IenOugh even to satisfy the bondholders,
The first notice Of the upheaval in
the financial control Of the road came
in the United States Court at Chicago
on Friday, when default was made in
the payment Of the interest in $14 ,000,-
1000 Of outstanding bonds Both the
Chicago and Milwaukee Electric rail
road of Illinois and the Chicago and
Milwaukee Electric railroad of Wiscon-
sin are affected. The, proceedings
against the Wisconsin corporation will
be to satisfy the demands of the hold
ers Of $10,000,000 of bonds outstanding
against it. This foreclosure, however,
will be subject to the 100000 Of re-
ceivers' certificates issued to complete
the line, so that it is not expected that
this portion of the system will come
anywhere near taking care of the claims
Of the bondholders.
Announcement was made on Friday
by the receivers Of the two corpora
tions, w. [. Osborne, d. B. Hanna and
George G.. Moore, that the Milwaukee
extension will probably open about
Sept. L for through business from Mil
waukee to Evanston.
The receivers have only $4,000 to-
meet the interest on the two issues of
Illinois bonds due Friday, amounting
to $4,000. It was on this showing
that Judge Grosscup entered an order
permitting them to pay $4,000 due on
the first issue, by drawing in advance
on the summer earnings Then he gave
| them permission to default on the $780,.
| 900 due on the second bond issue. For
the $250,000 due on the Wisconsin bond
issues the receivers did not have a cent,
and, as this corporation has been earn,
! ing nothing and will earn nothing until
fall, no order of the court was neces-
sary to permit the default in payment.
1t is believed that the Wisconsin pro-
ceedings will be started first, as the
bondholders of that corporation are bet.
ter organized than the Illinois bond.
holders. Both suits must be filed in the
United States Courts in the cases in
which receivers have been appointed.
The receivers will retain control of both
lines until the foreclosure proceedings
have been completed.
Of the 100000 of bonds issued by
the Wisconsin company, 100000 are
held by Canadian financial interests,
which forced the receivership English
capitalists hold 100000 of the bonds;
100000 are in the hands of John R.
Thompson trusteeship; 100000 are held
by other Chicago investors; 100000
| by eastern bankers and 100000 by
scattered investors all over the country.
Thus far the Kenosha line has not
been mentioned in any Of the court pro-
ceedings and it is generally believed
that it will not be included.