The Birmingham age-herald., 1911-12-19
RECEIVERS TAKE
 CHARGE OF WABASH
Action Regarded as Entirely
 Friendly
FINANCES ARE WEAK
Present President of the Road Is One of the Receivers = Protective Committee Appointed to
 Look After Bonds

St Louis, December 1s-On the appli- cation of the Westinghouse Airbralxe company, Judge Elmer B. Adams, in the United States eireuit court this afternoop ! appointed Fred rick J Delaiio, Edward P. Pryor and ". T. Bixby receivers of the Wabash Railroad company. The re- ceivers' bond was fixed at s3Oo,ooo each. to be given in 10 days. Wells II. Blod- gett. who 5lias been general counsel of the road, was appointed counsel for the receivers.
 F. J. Delano is president of the road now. and MT. Pryor. until recently, was a director
 No statement could be obtained from the railroad company early tonight re- garding the claim involved in the re- ceivership proceedings, but it was said in some quarters that it was $1S,00O.
 President Alvin w. Krech of the Equitable Trust company of New York and Robert Goelet, members of the Wabash executive and reorganization committee, who were in St. Louis Sat urday after an inspection of the east ern lines of the system, started to New York yesterday accompanied by PreSi- dent Delano and H. R. Winthrop.
 On behalf of the road it was stated recently that SI,500.000 was required immediately for the new cars and equip ment.
 The company in it's inspection here and elsewhere sought to learn the ur- gent physical needs of the road
 Today's action did not become known until after the fedral building was colsed, and copy of the petition for receiver ship was not available.
 Attorney Lawrence Greer of New York and R. H. Nelson, of attorneys for the Westinghouse company, refused to dls- cuss the action.
 Messrs Pryor and Blodgett are vice presidents of the road, and w. K. BiXby is chairman of the board of directors of the American Car and Foundry company. Mir Blodgett has been general counsel of the road for 30 years. and MT. Pryor for a long time has been purchasing agent Under the direction of the latter the company purchased land for exten- sive terminals and freight yards and de- pots in St Louis few years ago at 6 cost of $2,000,O90
 New York, December 1S-The appoint ment of A receiver for the Wabash Rail- road company is the sequence of the ap pointment here about two weeks ago at a meeting of directors, of company to readiust the finances of the road which
 
 of grave concern to the roads security holders
 The receivership is said to be of an entirely friendly nature and to have been the outcome of the committees delib- erations as to the best possible way of placing the Wabash on it's feet This committee consisted of Winsow $. Pierce chairman, Edward Hawley. Rob- ert Goelet, Alvin w. Krech and General Thomas P. Hubbard, of whom the last four were elected directors. These men are directors of the Equitable Trust company, trustees of the railroads $40 GOO GOO first refunding and extension per cent mortgage bonds, the semi-annual interest on which is due January 1 next. This amounts of $S000O0 and 1t was the .company's lack of funds to provide for it's payment that precipitated. 1t is un- terstood, the present situation.
 Immediately after the receipt here of the news of the receivership the an- nouncement of protective committee for these bonds was made, consisting of Robert Goelet, Edward Hawley, Thomas Fl Hubbard, Alvin w. Krech, Robert Fleming and Winslow S. Pierce. This committee met tonight and announced that 1t would conduct as expeditiously as possible an investigation of the financial condition and requirements of the road and of the physical conditions and re- qurements or It's properties With the object of formulating and carrying out in cooperation with Kuhn. Loeb &5 Co, such measures as may seem to be best adapted to thes situation and to meet the wants and develop the possibilities of the properties
 The companys last annual report for the fiscal year ending June 3O showed deficit of s4os.o0o under the require- ments necessary to pay the con1pany's total interest charges, but arrangements were made by the directors at that time to provide the money for the July pay
 
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