Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-12-20
FAILURE no PROVIDE FOR M
PROyENIENT OF THE ROAD
CAUSED TROUBLE.
some OPPOSITION DEVELOPS
Owners of Wabash Bonds oppose
Reorganization Plans of
"Friendly" Rcccivership.

ceivers appointed yesterday for the
Wabash railroad company arrived
here late today from New YORK
and prepared tonight to confer with
C W. Bixby the other receiver, who
during the day indicated his Wiling
ness to accept appointment. 1t was
thought the receivers would go before
Judge Adams in the United States
circuit court tomorrow. AT the wa
bash general offices Mr. Delano is
sued the following signed statement;
THE decision TO apply for a re-
raiver was entirely uneXpectoc TO
me, at the time as | have endeaVered
to keep the stockholders fully ad-
vised of the conditions Of the prop
erty.
Had No Improvement Funds.
"The Wabash company has been
seriously handicapped ever since the
reorganization of 1889, which reor-
ganization provided no funds for I'M
provement or development work.
This made 1t impossible for the com
pany to keep abreast of the time or
to successfully compete with its com
petition.
disappointing results were the in
vcstments In the Wabash- -Pttsburg
terminal and commitments In that
connection as well as the litigation
growing out of these transactions and
which all help to depress the COM
pany's stability.
should Not Blame Managers.
"If the courts OF the various dis
tricts confirm my appointment as re-
ceiver 1t will be my earnest endeaVor
in cooperating with the other receiv-
ers to put the company In position
as to enable to pay all of Its debts and
returns its property to the stock
holders: / can't believe the public
will blame the recent management
of the railroad as no blame should
be attached to it,
The receivers will issue the usual
circulars to employers of the COM
pany and to connecting lines as soon
as practicable. No changes are con-
templated."
Opposition Develops.
NEW YORK, Dec. 19.-Strong op-
position developed today to the plans
announced for the reorganization OF
the Wabash railway company which
by the friendly receiv-
ership" obtained yesterday by tho
Westinghouse Airbrake company in
st. Louis.
To-day an Independent company OF
owners of the first refunding and eX-
tensions for per cent mortgage
bonds. was formed in opposition to
the committee formed by the 'reor-
ganization interests" headed by
Winslow II. Pierce and other direc-
tors of the Equitable Trust.
Object 10 Friendliness.
The new committee. which Is head
ed by James n. Wallace, president
of the Central Trust company. offers
bond holders exactly the same induce
ments for the deposit of their bonds
as the Pierce committee. naming the
OF the 100000 interests on
the bonds due January /, in the
event that IL Is not paid before by
the receiver railroad company. AL
though not officially stated It was
said the opposition plans to make
for the appointment OF an independ-
ent receiver az a part of its fight
against the interests which now ap-
pear to be In control. Their chief
objection Is said to be the "friendli-
ness Of the receiyership.
\ Stockholders Committee.
There was formed also today a
stockholders committee. headed by
Charles II. Koch. president of the
<nickerbocker Trust company. as II
ls said to be practically certain that
II the plans of the directors commit
tee are carried out assessments will
be levied both on the common and
preferred stock.
The more pressing needs Of the
Wabash aggregatlng about $4,000, 900
which amount II was intimated Will
be forthcoming. For the moro im-
poriant work OF reorganization, such
as new equipment and completing
double tracking now under way. Il is
estimated at least s1O,OOO.O0o will be
required.
Three bankers Identified with the
road declined to enter any financial
Of the property except to
say that many millions Of dollars
will eb needed to put 1t in a state
Of efficiency.