New-York tribune., 1912-03-08
K.C., NJ. & ORIENT ROAD
GOES INTO RECE|vERSH|P
Arthur E. StiIWeII, Promoter and
President, BIameS the
"Mcney Trust"
MEXICAN WAR A FACTOR
SAYS Stockholders Will Not Lose
Court in Kansas City
Names Company's Gen
eral Manager.

Kansas City, Mo. March 7.-Creditors
OF the Kansas City. Mexico & Orient
Railway filed with the clerk Of the Fed
eral Court in Kansas City. Kan, an ap-
plication for receivers for the road this
afternoon
E. G. Dickinson, Of Kansas City, vice.
president and general manager OF tne
road. was appointed a receiver ana an
other receiver is TO be chosen.
The creditors that asked for the re-
ceivership were the international Con-
struction Company, of Delaware; the
Union Construction Company. OF Dela-
ware: the Western Tie and Timber Com
many of Arkansas. and the United States
and Mexican Trust Company, Of this city
Arthur F. Stilwell, president of the
Kansas City. Mexico & Orient RAILWAY
Company. said last night that the re-
ceivership was a friendly proceeding
having the sanction and consent OF the
management. the receiver. Edward DICK
inson being a vice-presdent and gen.
eral manager OF the company Asked
WIN the receivership had been neces-
sary. Mr. Stilwell answered:
I'm reply to that question I refer YOU
to the statements made by me in recent
weeks about the money power. stano
nv everv word in those statements ano
believe YOU will find in them reason
enough for the receivership Of our road
Earlier in the day Mr.. Stilwell said IN
answer 10 inquiries regarding reports
that a reorganization Of the property was
in contemplation:
plans for the reorganization OF the
Kansas City. Mexico & Orient nave peer
corsidercd at conferences this week 1T
vbich representatives OF English ana
other foreign investors have participated
Nothing definite will be determined toi
a few days
Hampered by Mexican War;
Mr. Stilwell went on to say that. apar'
from the difficulties encountered In SELL
ing bonds. the management was nam
nered in the operation of its Mexican
lines and in the new construction N
Mexico TO carry the road to the Pacific
Coast.
Generation Of railroads in Mexico Is
terrible thing" he declared. ana mas
been for a year or more. Last yea'
Gonna of our bridges were destroyed and
although we were reimbursed BY the
Mexican government, operation OF the
railroad was suspended for a long time
As 70 the prospect OF ultimately com
Melting the road Mr. Stilwell said tha'
he had single handed raised S2S,ooo'V"
holf here and half abroad. and thought
he could get money enough to fnish IL
ta added last night that he thought the
,aoe,vership would be short and that nc
did not believe investors in the orient
securities would lose dollar.
The Kansas City, Mexico & Orient Oh
which Mr.. Stilwell was the originator
and has been president from the outset
was designed to furnish the shortest line
1ror, Kansas City to the Pacific Coast.
r.. coas, terminal is Port Stilwei, for
or,v Tonolobampo, on the Gulf of Cali
,ornia. I'm ;he State Of Sinaloa, Mexico
u has already been twelve years IN
oo,,rsa Of construction, although when 1t
u,os started, in 1900. 1t was believed by
..s friends that not more than five years
,,,o,,ld he required large part or me
rroiected mileage has been completed
"a ie I'm operation, but there are sew
oral important links still to be con-
ntr,cted. The total length Of the line Is
90 no GO miles, of which 764 miles had
been placed in operation few months
ago. -,
A. ctslwell was the builder of the old
xansas City, Pittsburgh e. Gulf Rail-
rood extending from Kansas City to the
c,,,, ~ Mexico at Port Arthur. This
,,na found itself soon after its compile
t,on unable TO meet the interest on its
,,ords and on April . 1899. was placed
&, the hands of receivers. 1t was there
,,on reorganized as the Kansas City
e,l,,,herp Railway, and came under the
control of the Hartman and Gould in
.os+s The late f.. II. Hartman and
t,s friends retired from the road in 1903.
,tor the control was secured by a
..ocpbolders' committee, headed by Her
- s,eIcken. who represented. among
ntnor large interests that Of the Dutch
investors.
Get Cash in Europe.
# was only a few weeks after the
..oo,osrre of the Kansas City. Pitts
- o. culf that Mr.. Stilwell incor-
continued on ninth page.