The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-05-28
Action Urged as Only
Solution of Financial
Difficulties.
PETITION HEARD
BY JUDGE SANBORN
Immediate Cause of Embarrass-
ment Is Maturing on June 1 of
Short Time Notes for $2,25o,-
o00-Impending Crisis Is
Depressing Influence on
Stock for Some Time.

ST Louis. Mo. Nay 27.-Thomas H.
West. chairman of the board of di-
rectors OF the st. Louis Trust Com
pany, and B. L. Winchell. president OF
the st. Louis and San Francisco Rail-
road Company. were appointed receiv-
ers for the railroad in the Federal dis
trict court here late to-day
appointment OF the receivers here
took place about an hour after ap-
pointment 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
receivers for the st. Louis and San
francisco was made to Circuit Judge
Walter II. Sanborn, who came here
from st. Paul to-day especially to hear
the Frisco matter, by the North Amer
lean Company. which is said TO be cred :
itors of the Frisco to the extent of
100000. The receivershp was urged
ss the only solution of the financial
d!ficulties Of the road by James Camp
bell of st. Louis. president of the
North American Company
The immediate cause OF the receiver
ship was the maturing. on June /. of
short time notes issued by the road
for S2,25o, 600. which bear per cent
interest.
Depressing Influence.
The Impending crisis in the affairs
oI the Frisco had a depressing influence
on its stock for some time, and last
week Chairman Yoakum of the railway
board OF directors, came to St. Louis
70 consult with local interests con-
cerning the welfare of the road as to
the best course to pursue. At first, 1t
was rumored that some means would
be found to tide the company over
but this nope was dissipated early to-
day, when Judge Sanborn and attor-
neys and directors for the road went
into secret conference.
AT noon II became known that peti-
lions were being prepared for appoint
ment of a receiver, and the scurryine
about Of attorneys representing the
various Interests started rumors that
| this proceeding would be opposed
These rumors were verified in part
when the formal application was pre-
sented 10 Judge Sanborn late to-day
Attorneys Frederick w Lehman
and Charles Nagel. representing credi
tors. said they preferred 20 have a.
receivers men not connected with tn,
railroad, those opposing the appoint
ment OF President winchell. and o.
Mr.. West. whose trust company hac
| handled many financial affairs OF tn,
road.
Mr.. Nagel also requested that tn,
receivership be made temporary. unit
he could get definite instructions from
his clients.
Objections of Attorneys Lehman
and Nagel did not prevail with tn,
court who appointed Mr.. West anc
President Winchell receivers
Thomas 7. fauntleroy, OF ST Louis
was appointed special commissioner I,
represent the court In future proceed
ngs.
Application Before Court.
Application for the appointment o
receivers was laid before the cour
by Henry 6. Priest. representing tn.
railroad and the bondholders, and act
ing in behalf OF the North America,
Company. The North American Com
pany is understood to hold as col
lateral on its loan the first mortgag,
bonds on the railroads Federal lanc
grant OF 1,250,000 acres In Arizona ant
New Mexico, and 100000 first mort
gage bonds of the New Orleans, Texas
and Mexico Railroad Company sub
sidiary OF the Frisco.
The financial difficulties of the road
were OF long standing. and are at
tributed in part to the Southwestern
floods OF 1911 and 1912. in which tn,
road sustained severe losses. To III,
increased wages of employees and tt
the high rrice of money.
The ownership of the Chicago ant
Continued on Seventh Page.