The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1910-05-24
CHICAGO RAILWAYS COMPANY is
FINANCIALLY EMBARRASSED
eY JUDGMENT.
MUCH STOCK UNLOADED
N'ne-Poins Drop Is Caused by Takira
OF Affairs OF Corporation Out Of
Hsnds OF Present Manaosmsnt--
Union Traction Debts Play Part in
Misfortune.

Chicago. May 23-The receiver.hin
into which the Chicago RAILWAYS COM
pany was thrown today, sent lts most
active stock. series 2. participating
oer'iflcates' OFF an extreme nine points
IN the local stock exchange with only
shght recovery This stock par
ticipates only after the payment OF
oohd interest and dividends on certif-
icates OF series /. but the earnings of
the company recently were believed Ia
indicate an early dividend on series 2
thousands Of shares were unIoaded
when news of the receivership became
known In LaSalle street. The a,-
pointment of the receivers. John N
Roach. president OF the company. and
Henry A. Blair. a heavy stockho,der.
was precipitated by the fact that the
company had neither sufficient assets
10 pay judgment Of si.34l.sst rend-
cred against II by Judge Ball In the
superior court last week nor to pro-
vide sufficient bond to secure a stay
OF execution by means OF an appeal.
The One Way.
There was only one way out n re-
ceivership. and this action described
as mere legal move for friendly
was taken suddenly and
secretly. BY this arrangement II will
be possible To protect the company
while Judge Baii's decision Is carried
to the state supreme court. Judge
Ball held that the Chicago Railways
company In taking over the old Union
Traction company promoted by the
late Charles 7. Yerkes. assumed re-
sponsibilsty for the bonds of the H.
nancially shattered Consolidated
Traction company The Judgment
awarded by Judge Ball and entered
today was In favor of the litigation
bondhoiders OF the latter company.
Should this decision be upheld Il
opens the road for additional judg-
ments of a similar nature aggregating
about s5.oo0oo0. Other effects OF the
receivership may be summarizes:
Effects. Fl
First-The city's interest under the
reorganization ordinance of three
years ago, whereby the municipality
receives 55 per cent of the net profits
Of the company. is fully protected.
Second-PhysicaI improvements 10
which millions already have been
spent Will go forward under the di-
rection Of the board OF supervising
engineers.
INSTRUMENTATION of the proper
ties of the Chicago Railways company
and OF the Consolidated Traction COM
pany. providing Judge Ball Is sus-
tained by the upper court
II is said the bonds of the Chicago
Railways company are not affected
either by the reeeiyership or the judg-
ment as they constitute a prior lien
on the s500O0,000 assets OF the com
pany The friendly offices OF the
Electric & Manufactur-
cure receivershlp The petition was
filed by Charles p. Cotton. Jr.. of New
York. representing the Westinghouse
company, His bill set up that the To-
cal company owes a bill of 369. 900 to
the electric concern which II cannot
pay because of the judgment secured
agalnst IL.
The bill declares that the local COM
pany's assets are at present SO an
numbered by mortgages and trust
deeds that ii cannot raise money
enough to perfect an appeal from
Judge Ball. The proceedings. which
.ook place before Judge Grosscup In
the United States circuit court. lasted
but few minutes