New-York tribune., 1911-12-19
WABASH IN HANDS
Of THREE RECEIVERS
Named in St. Louis Upon Appll-
cation of Westinghouse Air
Brake Company.
CLAIM SAID TO BE $4,000
The Receivers Under $500, 900
Bonds Each-Opinion Has Pre-
vailed for Some Time That
Step Might Be Necessary.

panY, Judge Elmer Is. AudHiS' III 'h
United States Circuit Co I. this after
noon appointed Frederick J. Delano, Ed
ward p. Pryor and w. K. Bixby receiv
er5 Of the Wabash Railroad Company
The receivers bond was fixed at $1,000"
each. to he given in ten days Wells n
Blodgett. who has been general counse
Of the road, was appointed counsel 70
the receivers
F J. LELAND is president of the roat
now. and Mr. Pryor until recently was {
director.
Mr.. Pryor = on his way from NeV
York 10 st. Louis. w. K. Bixby did no
know of Lis appointment as one OF tn
receivers urtil informed tonight b,
newspaper men No statement could b'
obtained from the railroad company
early tonight regarding the claim in
volved in the receivership proceeding
but il was SAID in some quarters that !
was $4,000
In filing its claim Of $4,000 agains
the Wabash. the Westinghouse Company
alleged the railroad was insolvent anC
unable to meet unpaid vouchers aggre
eating more than 81 100000.
inspection by Committee
President Alvin w. Krech. Of the
Equitable Trust Company of New York
and Robert Goelet, members of the Wa
Dash executive and reorganization com
mittee. who we're in st Louis Saturday
after an insl cctlon Of the eastern lines
Of the System. returned TO New York
yesterday by way Of Toledo. They were
ACCOMPANIED by President Delano and
II. r Winthrop and are expected to
reach Nev York to-day.
ON behalf cf the road it was stated
recently that $I5OO0O0 was required
Immediately for new cars and equip
mont. The committee in its inspection
hero and elsewhere sought to learn the
urgent physical needs of the road
For some time it has been the opinion in
Wall Street that "a receivership would be
found necessary TO straighten out the
financial difficulties Of the Wabash Rail
road Company. Two weeks ago announce
ment was made of a proposed reorganiza-
ton of the company. Representatives OF
the Equitable Trust Company. which is the
trustee of the railroads 100000 firSt re-
funding extension mortgage were put In
charge OF the reorganization. with huhn'
Loeb & co. as the bankers.
Recently the following men entered the
board OF directors to fill vacancies which
had been made to bring about the reorgani-
cation: Robert Goelet, Edwin Hawley.
Alvin ". Krech and Winslow S. Pierce.
All Of them are trustees Of the Equitable
Trust Company. General Thomas n. Hub
bard. also a director Of the Equitable, Is
on the Wabash hoard. They were selected
to constitute the executive committee,
with general power 10 act with such FUR
Their individuals as they may associate
with themselves as a committee for the
financial readjustment or reorganization of
the company" Mr.. Pierce became chair
man OF the board.
Receiversnp of Friendly Nature.
II was said here last night that the re
ceivership was of an entirely friendly
nature.
The sem-annual interest on the first re-
funding and extension mortgage amounts
to $500 coo and Is due January /. II was the
lack of funds To meet this payment that
has brought about the present receivership,
II is understood. Immediately after the re-
ceipt here Of the news of the receivership
a protective committee was announced. II
consists of the same men on the executive
committee. They met last night and later
announced:
The committee will conduct as expedi-
tiously as possible an investigation Of the
financial condition and requirements Of the
road and of the physical condition and re-
quirements of its properties with the object
of formulating and carrying out in CO.
operation with Kuhn. Loeb & co. such
measures as may seem to be best adapted
to the situation and to meet the wants and
develop the possibilities Of the properties.
The committee requests the holders OF
these bonds to deposit them with the Equi-
table Trust Company Of New York which
has been appointed depositary.
arrangements have been made with the
bankers TO advance to the committee the
funds necessary 10 enable II TO advance 10
depostors of bonds the interest maturing
January /. 1912, in case the same should
not be paid by the company"
Mr. Krech said last night that though il
was friendly receiyership 1t was not a
part Of the reorganization committee $
plan
Il do not wish the impression 10 get
abroad that this rcceivcrshlp was brought
about by the reorganization committee" he
said. 1T is not a surprise to us. however
for if the Westinghouse company had no.
acted some other company would have
stepped in The connection OF Kuhn, Loeb
& co. will continue just as arranged by
the reorganization committee. We had
hoped to get through without receiver
ship. but recently the company has been
pushed 50 hard it was only a matter Of
time before the receivership was brought"
Difficulties OF the Wabash.
The difficulties Of the Wabash had their
beginning with the decision of the Goulds
TO create an ocean-to-ocean route, Of which
the Western link was the Western Pacific
Railway, which connected on the east with
the Denver. Rio Grande a Western. and
that i'm turn with the Denver &.Rio Grande
Iacihc, and the Wabash carried the line on
eastward 10 connection with the Wabash
Pittsburgh Terminal Railway, which LET the
Wabash and the Wheeling & Lake Erie into
Pittsburgh. 4 new line was built from
Pittsburgh 10 Cumberland and the West
ern Maryland was 10 take the transconti-
mental route into Baltimore
The costlt Wabash Pittsburgh Terminal
railway. II siXty-mile line which had taken
years OF fighting 10 put through. first
passed out of the hands Of the Goulds
q'hen the Western Pacific had 10 get into
san Francisco through an arrangement
with the Hartman lines. After that the
Western Maryland went from the Could
control. then the wabash, and finally other
Influences came into the Missouri Pacific
L.-L- IL IL f.r IL