The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-12-19
Railroad Is In Hands Of Three Receiv-
ers Because II Cannot Even
Pay interest
81 Due.
BUILT BY JAY GOULD
Temporary Financial Troubles Of the
Road Are Thought Not to be
Of Serious
Nature.

UNITED Press Leased Wire Service.l
ST. LOUIS. Mo-, Dec. officials
OF the wabash railroad admitted today
that note for $9.so7, 1868 due the
Wheeling and Lake Erie in August,
1912, is the real thorn in the side of
the Wabash and the main reason for
the application for receivers which
was filed in the st. Louis branch OF
the United States circuit court a few
moments before closing time last
night.
The company has been striving hard
to deposit necessary funds to cover
Interest and equipment obligations.
OF these the obligations due January
] amount to s1,2O5.0O0. OF this amount
$S96,000 represents interest due and
sS09,000 maturing equipment obliga-
tions which will have to be taken care
Of. The actual amount OF shortage,
say the officials of the road. cannot be
stated as deposits are being made
from day to day, according to New
York dispatches, but large amount
OF money still remains to be collected
before SUFFICIENT is on hand to meet
the interest due the first of the year.
On February /, $333,00O will be due
as interest on the Wheeling and Lake
/ Erie note and inasfnuch as the net
kAesrnings for October decreased l6 per
cent and for four months the company
appears to have been running behind
its fixed charges at the rate of $1,000.
900 annually, It was thought best to
apply for receivers to take charge OF
the business Of the road.
The receiyers-F. A. Delano, presi-
dent OF the wabash; E. B. Pryor. vice
president of the road, and w. X. Bixby
OF this city--are considered to be ex.
ceptionally strong. Pryor has been
connected with the road 26 years and
has acted as receiver when the road
was involved In receivership before
Bixby is chairman of the board of di
rectors of the American Car and
Foundry company and director in the
st. Louis and San Francisc, railroad
Delano, according to Judge Adams
who appointed the receivers, was
named because of his managerial abil
ity.
1t is believed that all three will ac
cept the appointment, although De
lano and Pryor were out OF the cit,
when appointed and Mr.. Bixby seem
ed greatly surprised when informed
OF his selection. Three hundred
thousand dollars bond is required o
each of the receivers and it is thought
that as soon as they have qualified
they will meet to outline plan o
operation. The United States circui
court, in which the petition, filed b.
the Westinghouse Airbrake Co.. wa,
presented, will be abolished Januar.
i 1t Is probable that Judge Adaml
will continue to direct the operation
OF the road through the receivers un
til the latter are discharged.
1t is generally believed here tha
the receivership is of entirely a friend
ly nature and is the outcome of th,
readjustment committees delibera
tions and plans for reorganization.
is not thought that the plea will b.
opposed by the Gould family, suppose'
10 controf the ROAD.
The Wabash system is one of th
pioneer railroad properties, built III
and developed by Jay Gould 1t begal
its present existence as the Wabasl
Railroad Company in 1889.
The outstanding capital stocl
amounts to approximately Ss2,00o,0 ,0OC
Of which $53,0JO,000 is common an
$39000,000 preferred
1t has for several years been pa.
ing no dividends on either securit,
Delano has been president of the roa
since 1876, and until the recent d
rectors' meeting Edward Jaffray wa
chairman OF the board of directors
He was succeeded at this meeting .
Winslow s. Pierce.