The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-11-13
The Orient Railroad Wants the
Receivership Abolished.
Attorney in Kansas City to Ex-
plain to Judge Pollock.
IT IS ON 4 PAYING BASIS
And Enough Capital for Its
Completion Is Available.
Gap Between Wichita and X. G..
to Be Closed First.

Kansas City, Nov. 13.-Attorneys rep
resenting bcndholders and stockholders
Of the Kansas City, Mexican & Orient
ard construction and financial interests
concerned, with the future Ct that line.
were here today to lay before Judge
John C. Pollock, of the federal court
In Kansas City, Kan, proposition for
the reorganization of the road. The
Orient was placed under a receivership
in March, 1912. and is now under the
direction OF eleven receivers-three sep
arate sets appointed to control it's pro-
perties in Missouri, Kansas and Okla
homa, in Texas. anc- in Mexico.
Recently the M. K. & o.. receivers
reported to Judge Pollock who named
the receivers for the northern section.
that the road was earning more than
Its operation expenses and was in a
condition for reorganization and a dis
missal of the receivership.
On October 81 last Judge Pollock
appointed Clifford Histed of this city
special examiner to investigate con-
flicting claims Of bondholders and
construction companies and an
nounced that until these claims were
adjusted he could make no order for
reorganization. The issuance Of an
order for reorganization 1t was said
would make available ample. capital
stretches Of the road and for the pur-
chase OF new equipment for those pOr-
tons now in operation.
The extension of tracks from Wich-
be one Of the first matters taken up
after a reorganization. This the at
torneys pointed out would give the
road a through service between Kan
sas City and California. Among the
attorneys here to present a reOrgani-
w0ffnn U1Q n q ~
New York. attorney for the bondhold-
ers committee. w. B. King, also of
New York. chairman Of that commit
tee, and J. w. Platton and Benjamin
spectively chairman Of and counsel
for the stockholders and construction
committee.
There was considerable discussion
in the financial district here Of a ru-
NOR that the Kansas City Southern
Orient reorganization. Mr.. Inter
myer, it was pointed out, is general
counsel for the Southern, and James
Blair. a heavy financial hacker Of the
Southern, recently made an inspection
trip over the Orient.
A tentative agreement reached by
representatives of the b0ndholders
and attorneys for the construction
companies that are building the road
was submitted to Judge Pollock this
ment the bondholders proposed to
give the construction companies $4,-
100000 in common stock, $1,800,000
in adjustment bonds in the reorgan-
lied company and to assume a debt
aggregating $1,578.O00.
In the course of the arguments pre-
ceding the submission of the agree
ment Mr.. Untermyer said he did not
believe the contractors were entitled
to anything until every bondholder
was satisfied.
The contracting companies. should
be stripped of every dollar of their
property and the stockholders of every
cent of their assets before the bond
holders lose one cent" he said.
Mr.. Untermyer declared the bond
holders had put up a certain amount
Of money with the understanding that
a certain amount of road be con-
structed.
The construction companies really
were SPECTATORS, Mr.. Untermyer said.
II everything turned out successfully
they made a big profit and in the
event Of q failure they should lose.