The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-05-27
Frisco Railroad Resorts to
Federal Court at Last.
Unable to Meet a Maturing
Loan of S2,25O,OOO.
FLOOD LOSS is ENORMOUS
Operating Expense and High
Water Weakens Finances.
Increased Wages Added to
Roads Discomfort.

st. Louis, May 27.-Attorneys for
the St Louis & San Francisco railroad
were in consultation during the noon
hour today preparatory to the filing
of a petition for a receivership in the
federal district court at o'clock this
afternoon.
Judge Walter H Sanborn of the
Eighth judicial circuit came from st.
Paul this morning to receive the petit
ton.
The proposed receivership proceed
ings are understood to have been de-
cided on at conference today OF large
bond holders of the railway and
number of the directors, including h.
F. Yoakum, chairman of the board;
James Campbell, Thomas West, Fesus
J. Wade, B. L. Winchell, president OF
the company, and Murray Carleton.
name of Thomas West, president of
the ST. Louis Union Trust company,
and other directors of the railroad
The petition for the receiversh1p is
to be based on the inability of the
railroad to meet a maturing loan OF
S225O,OO0 based on short time for .
per cent. notes due June 1. Soon at
ter his arrival from st. Paul TO-DAY
Judge Sanborn went into consultation
with Frederick w. Lehman, attor-
ney; Henry S. Priest attorney, and
Thomas West of the St. Louis union
trust company which heretofore has
taken care of important financial oD-
legations of the Frisco system. While
none of the directors or attorneys
would be quoted to the effect that a
receivership was contemplated yet 1t
was learned from a source close to the
management at noon today that the
petition would be filed.
A director who would not allow his
name to be used speaking of the com
pany's affairs today said:
''The Frisco has been under a Sc
we're handicap for some time. Operat-
ing expenses and fixed charges have
continued to offset large gains in gross
earnings due to increased wages for
trainmen and the high rates prevailing
for money. In the southwestern
floods a year and two years ago, the
Frisco suffered losses running into the
millions"
History of Frisco.
Kansas City, May 27.-The growth
of the ST. Louis & San Francisco
road into one of the great transpor-
tation systems of the country covers
a period of more than sixteen years.
In 1896, when the company was re-
organized it's main line extended only
from ST. Louis to Springfield, Mo-,
with branch lines to Wichita, Kan,
Sapulpa, Ok, and Paris, Tex. 1t oper-
ated a total of less than 1900 miles.
In 1912 the Frisco system operated
7,544 miles of road and it's lines ex-
the Rio Grande into Mexico. 1t had
pushed eastward to Chicago, where it
meets the lake traffic, south to the
gulf ports of New Orleans and Gal
weston to the ore fields of Alabama
and out over the rich agricultural
regions of Kansas and Oklahoma.
1t operates more miles of track in
Oklahoma than any other road Its
gross earnings have increased from
6 million dollars to 81 millions. To
its original trackage it has added by
purchase, lease or traffic arrange
ments, the Kansas City, Fort Scott
& Memphis. the Kansas City, Mem
phis & Birmingham, the Fort Worth
& Rio Grande, the st. Louis, San
Francisco & Texas, the Paris & Great
Northern, the Chicago & Eastern Illi-
nois and a number of smaller lines.
Taken Over by Rock Island.
In 1903 control of the Frisco system
passed to the Chicago, Rock Island &
Pacific continuing until 1909, when
B. F. Yoakum, who had been its pres1-
dent prior to that time, and Edwin
Hawley repurchased it. The capital
stock of the company is 1000, 900,
divided into five million first prefer
red, 81 millions second preferred and
164 million common. In 1912, fifty
millions of this was outstanding.
From the date of it's organization to
1912 the company has paid a total IS
per cent in dividends on it's first pre-
second preferred. B. L. Winchell is
president of the company and B. F.
Yoakum chairman of the board of
directors and of the executive COM
mittee.