The San Francisco call., 1909-12-08
OCEAN SHORE IN
RECEIVERS HANDS
Petition Filed by Baldwin Loco
motive Works Results in
Action by Court
Collector of Port F. s. StrattOn
Named by Judge to Take
Charge of Line

The Ocean Shore railway went into
the hands Of receiver yesterday upon
the petition of the Baldwin locomotive
works. Frederick s. Stratton, collector
OF the port. was appointed receiver by
Judge ". ". Morrow of the United
states circuit court. Stratton viii con-
tinue TO operate the road. for it is only
ia this way that the creditors see any
hope Of realizing upon their 81 800, 600
Of unsecured claims J. Downey H4r-
vey, president OF the road. has already
been named by Stratton as its general
manager
By prearrangement, all papers were
nled yesterday at the same time Good
fellow and Eels for the locomotive peo-
PIE alleged that the railway had been
insolvent for six months past. The
railway. in an answer prepared by
Burke Corbet, admitted all the allega-
tlons. Judge Morrow signed the order
appointing Stratton. who fled his re-
qUired bond of 100000, furnished by
the Empire surety company, and also
his oath OF Office
CREDITORS ARE PROTECTED
The unsecured notes held by the
Baldwins amount to only $47s7 and ac-
crued interest but all the creditors are
interested in and protected by the suit.
Were the property of the company to
be sold piecemesl the complaint says,
there would not be enough left to pay
the mortgage bonds These bonds.
amounting TO s5.OOO.Ooe, are protected
BY a trust deed. but the company's $
property would bring a low price at
this time.
The reasons why the creditors wish
10 preserve the integrity of the road
depend in part on the valuable fran
chises which otherwise would lapse.
The line is built south from San Fran
cisco for IS miles and north from Santa
Cruz for Is. Between are franchises
over government land at Pigeon point
and Waddeu beach. where a $500. 600
tunnel must be built, and over the
Spring Valley tract. Not less valuable
IS the city franchise from Ocean View
70 the present terminus at Twelfth and
Mission streets.
WOULD WORK HARDSHIP
Furthermore. TO shut down the line
would work a great hardship upon the
residents OF the new suburbs it has
developed.
Stratton declined yesterday to state
his policy, as he had not time to ac-
quaint himself with affairs. He will
have a free rein in its management
under the agreement reached between
road and creditors. Should it be sold,
the Western Pacific, Santa Fe and
Southern Pacific may be rival bidders.
as the road will tap the richest part of
the peninsula.
J. Downey Harvey, president of the
Ocean Shore, made the following state
ment last night:
The appointment OF a receiver is
extremely satisfactory TO the officers
and directors of the company Mr..
Stratton has appointed me general man
ager under him In our plans for reor-
gsnization we have hitherto been ham
pered by the refusal of about 20 per
cent Of the bond holders TO come into
the fold. The receivership will now
enable US 10 conduct our affairs ire
spective OF the recaIcitrants, who may.
however. now be willing TO act in har-
mony with US. Altogether, our proper
ties viii be protected. we will be able
10 pay our laborers. and none but the
best results can accrue from today's
action