Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-01-09
c. c. ". PLAN UNIQUE
Was Working Under Finan-
cial Plan Unlike That OF Any
Other Railway System
NO BONDED INDEBTEDNESS
System Worked All Right Until Earn
ines Fell Of and Dividend Payment
Was Decentralization Stickney
Named as Ono Of Two Receivers
No Change in Policy.

NO Change IN folcy.
Minneapolis, Jan. 9.-By the naming
of President A b Stickney to serve
with c. II. f. Smith as a receiver for
the Chicago Great Western railway, no
change i'm the policy of the company
and no shake-up among the officials
will ensue.
The appointment was left to Judge
Walter Sanborn of the federal court,
! sitting at ST Paul and was the direct
/ result of President Stckney's session
yesterday afternoon. in London, win
I the English note holders of the road
Frank Kellogg and other attorneys
A representing the creditors OF the Chi
cago Great Western, presented the Pc
/ tition on which the court acted.
Mr.. Stickney's probable retention at
the head of the Great Westerns affairs
indicates that his trip to London was
not without benefits along the line OF
getting together. for 1t shows that the
receivership is friendly one.
1t is to be the duty of the receivers
TO maintain the roads status quo dur
ing the time necessary to prepare a
first mortgage bond covering all the m
debtedness of the road and to obtain
vote OF the stockholders on the meas
ure.
When Mr.. SticSney left for England
/ two weeks ago it was foreseen that a
crisis threatened, that the question OF
/ financial reorganization or of adher-
ence to old methods was at stake. This
4 involved the central of a property
! with which the Stickney name mas
4 been associated for some years.
C. G. w. Plan Was Unique.
! The placing of the Great Western
under new form of control. pending
( the working out of plan for convert
: ing the English note issue into bona
obligation, marks the passing OIL q
financial plan that had placed the
Great Western in a class by ltsei1
\ There were no bonds on the road.
+ The Chicago Great Western, operat-
/ ing SIS miles of road and holding a
position of strategical Importance, has
had a. strong English following. The
annual meeting of the London STOCK
holders always brought out represent
tation of the "debenture' and the pre-
ferred A aggregating millions. Ihe
road has outstanding, in approximate
figures. s44,500.000 in common stock
$4,000 900 in preferred a. S24,OOO,0OO
in preferred "B,'' and s26000,OO0 In de-
( bentures. 1t has paid per cent an
| nually on the preferred "A" when
earned and had paid 4 per cent on the
debenture stock from the beginning
until a month ago, when, for the first
time, the debenture dividend was not
Maid. AS there was no bond issue ana
absolute right of foreclosure qua no'
attach to any outstanding security the
road had appealed to many investors.
Borrowed on Notes.
| The fatal financial move was maze
when. being in need of money. VIII
| operating expenses high and the mon
| ey market conditions unfavofable lol
/ the floating of new issues of stock. the
road began to borrow in England on
/ short-time 5 per cent notes. In TINS
i wav. over a lapse Of about seven years
an Indebtedness of $S,500,00O was built
nm of a form to take legal precedence
over anv of the various classes OF
/ stock outstanding OF this sum So
ZOO 600 comes due in March. unaple
4 to provide for the payment OF thls ps
new financing in the United States, MT
! Stickney betook himself to England
| there to ask the English noteholders tc
renew their notes or otherwise help
tide over the difficulty.
MANY of these notehoders are also
holders of the debenture and preferred
"a" issues, and they have been dissat-
istied over the recent passing OF the
! dividend and have insisted that tney
be given bonds in place Of their notes
That plan will now be- followed. Mr
Stic]5ney evidently having failed to
| forestall it.
Stickney Unique Figure.
The operation of the new interstate
commerce law. preventing m1dnlgh'
! tariffs and sudden cuts in rates, Where-
by President Stickney made severa
sensational coups, also hurt the ROAD
IT was for this practice that the Grea'
Western was termed pirate by the
other roads, but Mr.. Stickney always
explained that he acted in self-detense
.Do unto the other fellow what ne
would do unto you. but do it first" was
the motto by which he said he was
guided.
President Stickney has been unique
figure in the railroad building OF the
west. 1t was his personality far more
than the need for a railroad-which con-
structed the Chicago Great western
and his ability to raise needed capita
| has been in former times the wonder o.
financial men. Mr.. Stickney was porr
June 81, 1S4O in Wilton, Me-, and after
studying law moved to Saltwater
Mimi. where he practiced law unit
1869. During the following years ne
proved himself successful railroad
builder on several small lines, but his
browning effort was the organization
of the Chicago Great Western, known
as the Maple Leaf.
| There weres everal years OF con-
struction and in 1892 the road was re-
organized under the laws of Illinois
Ii now has a mileage of SIS miles, l:
the direct route between ST. Paul ant
Kansas City, and has main line en-
| trance into Chicago. The total l1abll'
4 tiles are slightly in excess of $ll4,
100000.
The only man of national importance
| connected with the road, other than MT
| Sticliney. is +. WeyhaeuSer. the lumbe
king. whose home also is in St Paul.
Strangely enough, Mr.. Stickney wa: