The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-05-24
STOCK SENT DOWN
FULL NINE POINTS
Chicago Railways Company
Thrown Into the Hands
of Receivers.
CANNOT PAY ITS DEBTS
ACTION TAKEN WAS BOTH SUD-
DEN AND SECRET.

Chicago, May 23.-The receivership
into which the Chicago Railways COM
pany was thrown today sent its most
active stock-series participating
certificates an extreme 8 points
in the local stock exchange with only
a slight recovery. This stock partici-
pates only after the payment Of bond
interest and dividends Cd certificates
of series l, but the earnings OF the
company recently were believed TO in
dictate an early dividend on series 2,
Thousands of shares were unlOaded
when the news of the receivership be-
came known in LaSalle street.
The appointment of the receivers
John NJ. Roach, president of the COM
pany, and Henry A Blair. heavy
stOckhOlder-waS precipitated by the
fact that the company had neither
sufficient assets to pay judgment
of $l,344,684 rendered against it by
Judge Ball in the superior court last
week, nor to provide sufficient bond to
secure a stay OF execution by means Of
an appeal
Only Way Out.
There was only one way Out-a re-
ceiVership-and this action, described
as a mere legal move Tor friendly
conservation" was taken suddenly and
secretly.
By this arrangement it will be pos
sible to protect the company while
Judge Balls decision is being carried
to the state supreme court.
Judge Ball held that the Chicago
Railways company in taking over the
old Union Traction company, pro-
NOTED by the late Charles T. Yerkes,
assumed responsibility for the bonds
I'LL H. ~aA l.
idated Traction company. The judS-
ment awarded by Judge Ball, and en-
tered today. was in favor of the liti-
eating bondhOlders of the latter com
pany.
Should this decision be upheld it
opens the road for additional Judg-
ments of a similar nature aggregating
about 100000. Other effects of the
receivership may be summarized:
City Fully Protected.
THE city's interest under the re-
organization ordinance of three years
ago, whereby the municipality receives
80 per cent of the net profits OF the
company, is fully protected
Physical improvements, to which
millions already nave been spent, will
go forward under the direction of the
board of supervising engineers
decentralization of the properties
OIL the chicago IlIllNdNS Cttl4k ioAfy e14A-A
of the Consolidated Traction com
pany, providing Judge Ball is sustained
by the upper court
1t is said the bonds of the Chicago
Railways company are not affected
either by the Teceivership or the judg-
ment, as they constitute a prior lien
on the $4,000, 600 assets of the COM
pany.
The friendly offices of the Westing-
house Electric & Manufacturing COM
pany were called upon to secure the
Teceivership. The petition was filed
by Charles P. Cotton, Jr., Of New
York, representing the Westinghouse
company. His bill set up that the
local company owes a bill Of 100000
TO the electric concern which Il can
not pay because of the judgment Sc
cured against 1t
The bill declares that the local COM
pany's assets are at present so en-
numbered by mortgages and trust
deeds that it cannot raise money
enough to perfect an appeal from
Judge Ball
The proceedings, which took place
before Judge Grosscup in the United
States circuit court. lasted but few
minutes.