The Birmingham age-herald., 1913-05-28
Appointment of Receivers
Follows Naming of AuxiI-
iary Receivers for Sub
sidiary Company
IMPENDING CRISIS
OF FRISCO AFFAIRS
DEPRESSES ITS STOCK
RumOr That Means Had Been Found
to Tide Company Over, Dis
apparted Early Yesterday.
Mileage of the System
Totals Over 1900

st. Louis, May 27.-Thomas II. West.
the st. Louis Trust company, and II. l..
Wfnchell, president of the 81. Louis and
Snn Francisco Railroad company, were
appointed receivers for the railroad In
the federal district court here late to-
day.
Appointment of the receivers here took
of ancillary receivers for the Chicago
and Eastern Illinois, a subsidiary of the
frisco by the United States district court
in Chicago.
Application for the appointment of re-
ceivers for the st. Louis and San Fran.
cisco was made to Circuit Judge Walter
ii. Sanborn, who came here from st
Paul today, especially to hear the Frisco
matter, by the North American company,
which is said to be creditor of the Frisco
TO the extent of 100000 A receivership
was urged as the only solution of the
financial difficulties of the road by James
Campbell of St Louis, president of the
Stock Depressed
The Immediate cause of the receivership
was the maturing on June 1 of short time
notes Issued by the road for $2,250,000
(which bear per cent interest
The impending crisis in the affairs of
the Frisco had depressing influence on
Its stock for some time and last week
Chairman Yoakum OF the railway board
of directors came to st. Louis to consult
with local interests concerning the well
fare of the road as to the best course to
pursue. At first. it was rumored that
some means would be found to tide the
company over, but this hope was dissi-
pated early today when Judge Sanborn
Rnd attorneys for the road went into
secret conference.
At noon 1t became known that petitions
were being prepared for appointment of
| a receiver and the scurrying about of
attorneys representing various interests
started rumors that this proceedings
would be opposed. These rumors were
verified in part when the formal applica-
I tion was presented to Judge Sanborn late
today Attorneys Frederick w. Lehman
and Charles Nagel. representing creditors,
said they preferred to have as receivers
men not connected with the railroad
thus opposing the appointment of Presi-
4 dent Winchell and Mr.. West, whose trust
| company had handled many financial af-
fairs OF the road. Mr.. Mage also re-
auested that the receivership be made
Temporarily. until he could get definite
instructions from his clients.
Objections of Attorneys Lehman and
Nagel did not prevail with the court who
appointed Mr.. West and President Win
bchel receivers.
Thomas FauntIeroy of st. Louis was
appointed special commissioner to rep
resent the court in future proceedings
Application for Receiver
Application for the appointment of
receivers was laid before the court by
Henry s. Priest, representing the direc-
tors of the railroad and the principal
bondholders, and acting In behalf of
the North American company. He re-
quested the appointment of Mr.. West
and of Mr. Winchell. The North Amer
lean company is understood to hold as
collateral on it's loan all the first mort
gage bonds on the railroads federal
land grant of 1,250.00O acres in Arizona
and New Mexico and 100000 first
mortgage bonds of the New Orleans.
Texas and Mexican Railroad company
la subsidiary of the Frisco. The fnan-
cial difficulties of the road are of long
standing and are attributed in part to
the southwestern floods, Of 1911 and
1912, In which the road sustained severe
losses to the increased wages of en-
ployes and TO the high price of money.
The ownership of the Chicago and
Eastern Illinois 1t is said also has
proved a financial drain on the parent
system.
The st. Louis and San Francisco road
was leased to the Atchison. Topeka and
Sante Fe In 1895 the road became in
dependant. AT that time its mileage
was about 1900 miles Four years later
ii absorbed the Kansas City, Fort Scott
land Memphis, extending from Kansas
FCity to Birmingham, and in 1904 ac--
quired the Chicago and Eastern IlH-
nois. In 1903 the Frisco was merged
| with the Rock Island system. This mer-
ger continued until 1903 but in that
year the Frisco passed into the hands
of It's present owners. It's mileage now
totals more than 1900.