The Oskaloosa herald., 1913-05-29
RECEIVERS named
FOR TWO ROADS
Frisco and C. & |. E. Are in
Trouble.
LACK OF MONEY IS CAUSE
Petitions Are Granted by Federal
Judges In St. Louis and Chicago
... Stocks Sell at New Low
- t.. Record. ,a.'

st. Louis, May 2S,-Thomas H.
West, chairman of the board OF the
st. Louis Union Trust company, and
Benjamin l.. Wtnchell, president Of
the St. Louis & San Francisco (Fris-
col railroad, were appointed joint re-
cetyers of the railroad company in the
United States district court on appli-
cation OF the North American COM
pany, one of the railway systems Sc
curity holders.
Judge Sanborn. in appointing West
and Winchell, fixed their bonds at
100000 each. A request that third
man be appointed was presented by
Frederick W. Lehman. representing
Speyer & Co, and Charles Nagel, rep
resenting the Bankers Trust COM
pany of New York. Judge Sanborn
said he had no objection to the APP
pointment of third man, and would
take the matter under advisement.
-. Receiver for c. & {. l.
Chicago, May 2S.-Receiyers we're
appointed for the Chicago & Eastern
Illinois railroad by Federal Judge Car
penter. The action was made on COM
plant Of the Railway Steel Spring
company. Judge Carpenter appoint
ed William J. Jackson, vice-president
Of the railroad, and Edwin W. Win
tiers, New York railroad and financial
man. ..I
According to Attorney Shaw. rep.
resenting the Railway Steel Spring
company, the bankruptcy Of the rail-
road was brought about In no small
measure through two factors. First,
a tight money market; and, second,
anti-railroad legislation which has
been enacted in the state In the last
few years,
Shortage OF, Money Cause.
New York, May 2s.-Appointment
OF receivers for the St. Louis & San
Francisco Railroad company at st.
Louis and for the Chicago g. Eastern
Illinois at Chicago, according to In.
terests affiliated with the properties,
is due chiefly to two things, the In
ability to raise $2,250.000 to take care
of that amount OF notes maturing
June l next and the failure Of B. F..
Yoakum to dispose Of half interest
In the Chicago & Eastern Illinois to
the st. Paul road.
The Frisco has been lowering In
the shadow OF receivership for
more than two weeks, so that the
financial district was not surprised
at the actual announcement. There
was, however, an eleventh hour rush
on the part of security holders to
hQuidate, with the result that new
low records were established for
practically all of the property's Sc
curities. The common stock sold at
the new low record of five; the first
preferred at 24A and the second pre-
ferred at 81 The general lien SIS
dropped eight points to the low figure
of So, while the refunding AS lost
nearly four points and sold at the
bottom figure of 65As
vIce-President HIiIard Talks.
c. w. Hillard. yice.president OF the
st. Louis g. San Francisco, when
asked If the falling through of nego-
tiations In connection with the sale
of half interest In the Chicago &
Eastern Illinois to the st. Paul had
precipitated the receiyership re-
piled: "
ut was our inability to raise
enough money to take care Of the ST.
$4,000 notes falling due on June I
that precipitated the application for
receivership. We saw that we could
not get the money to pay OF the
notes and to prevent all the creditors
swooping down upon US. we decided
to protect all interests by having
receiver appointed. .-
There is no use in talking about
how much money we needed, for that
is thing Of the past. Until reor-
ganization plan is ready and a new
list of securities built, we will not
need any money.
The floating Indebtedness of the
st. Louis & San Francisco Is be-
tween s5,000,000 and 100000.
Has Faith In Frisco.
Il still believe that the Frisco is
good property and can come back
] particularly want to say that there
10 no reason why owners of it's ser
curities should throw them over
board at any prices obtainable be-
cause probably know better than
many OF the other men In the com
pany and perhaps the bankers, that
they 1.-THE securities) are now selling
under their real value. and ! would
advise security holders to hold on.
Mind, you, | do not advise their pur-
chase. but believe that persons own
ing them will not lose II they keep