The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-03-08
President of Company Says 1t
Is Friendly Suit
NECESSARY TO REORGANIzE
He Attributes the Difficulties to
the Money Trust.
Work of CONSTRUCTION VIII Pro-
ceed without Interruption.

OTQeF placing Ine hdtSdS lily AANAANf
& Orient Railway company in the
hands of receivers was made by Judge
Pollock in the federal court in Kan
sas city, Kansas. today. Edward Dick
inson of Kansas City. vice president
and general manager OF the company
j. o. Davidson, a banker and capi-
talist of Wichita, Kansas, and M. l.
Turner an Oklahoma City banker,
were named receivers.
The bonds of the receivers were fixed
at $4,000 each. They will take charge
of the railway at once. Their head
quarters win be here.
John A. Eaton and S. w. Moore. of
this city were appointed attorneys foi
the receivers.
The receiver proceedings here do not
apply to the railway company incor-
pora ted in Texas under the name OF
the Kansas City, Mexico & Orient Rail
way company of Texas. 1t Is said sep
arate action will be instituted in that
state. The company concerned by
Judge Pollock's order was incorporated
under the laws OF Kansas.
The hearing was held in chambers
and attorneys interested refused IL
discuss the action further than to say
that the construction work would De
pushed to completion.
The claims that were filed against the
company and allowed by the court are:
The Interra tional Construction com
pany of Delaware, 81, 800 O00; the Union
Construction company of Delaware,
$146. 900; the Western Tie & Timber
company of Arkansas. $4,000. and the
United States & Mexican trust COM
pany of Kansas City. s25, 900 900, repre-
senting claims on bonds.
According to the files OF the case,
which were taken to Topeka last night
by Clerk Morton Albaugh OF the United
States district court. first mortgage
against the company's holdings in the
United States in the aggregate of near
ly SIT, 100000 was made to the United
States e. Mexico Trust company of
Alabama February l. 1901 The same
day similar mortgage covering the
company's holdings. in the republic OF
Mexico was made to the - ne trust
company in the aggregate of about
81, 100000 Februar /, 1906. c deed of
trust to secure an issue of bonds was
made in the sum of about $4,000. 600.
Started Twelve Years Ago.
The officers of the road. which was
projected about twelve years ago. are:
A. E. Stilwell. New York. president:
Edward Dickinson, Kansas City vice
president and general manager: z. G.
Creel, Chihuahua, Mexico, vice presi-
dent; john f. Wallace, New York, vice
president, and J. S. Braithwaite. Lon
don, England. vice president
President Stilwell is in New York
and other officers of the road refused
The railroad originally projected,
is to extend from Kansas City to To-
poIobampo, Mexico, a distance of 1929
miles. Nine hunderd and ninety eight
miles have been completed and trains
now are running over that portion of
the road.
The original cost of the road was
estimated at about s23.0OO,OOO and
twelve years ago IT was announced.
that third of the amount had been
secured Then began a struggle for
funds.
A. E: stilwell, who proposed to build
the railway, announced from the start
that he would not seek to obtain the
funds for the construction work
through any agency of Wall street.
Dutch and English capital was in
terested in the project and sections of
the road built as the money was avail
able.
Two construction companies were
organized to build the road, the Union.
with a capital of $31,OOO,OOO. and the
international with a capital Of s1O.-
100000. Mr.. Stilwell is president OF
each of these companies
The second receiver. it is said will
represent the bondholders and will be
appointed as soon as agreed upon.
Due to Money Trust.
New York, March s.-Mr. StiIweU IA
quoted as blaming the so-cailed mon
ey power" for a considerable propo--
tion Of the roads troubles.
w HSH dSkeu 70 Wnat he attributed
the receivership. he is quoted a. sav-
ing:
In reply to that question. refs4
you to the statements made by me in
recent weeks about the money power.
] stand by every word in those state
ments and believe you will find in them
reason enough for the receivership OF
our road.
The suit is a friendly one" said
Mr.. Stilwell. 'and no one who has IN
vested any money in the road VIII
lose a cent. We have perfected ar
rangements for a reorganization and
intend to issue a per cent bond in
the place Of the present per cent
we have out. We found il impossible
in these days of high interest rate
bonds put out by other railroads, 20
sell our per cents.
I'm those circumstances we decided
to reorganize. To do this it was nee
essary to put the road in the hands
of a receiver. We could not ourselves
apply for a receiver. because we had
paid the interest on our s15OOOO0O rf
bonds last month. so we arranged to
have some of the men who had sut,-
piled material TO the rad to file tn
petition"
CONDITION OF THE PROPERTY.
Rights and Interests in Mexico About
to Be Lost.
Kansas City. Mo, March SIN re-
sponse to the application OF attorneys