The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-05-28
FRISCO )AI[R0AD
Ii Rf{Gi[l!l l!l|!' HANDS ID
Two Humid Million Dollar
Railway ,annot Meet
$4OO,dD In Notes
BILL OF COMPLAINT
PUTS BLAME ON LAW
Burden Of carrying Chicago
and Easten Also Bankrupt,
and Hbods Other
Cad Given

Louis and 81 Francisco Railway
compauy. com Only known as the
Frisco" was aced in the hands of
receivers this kernoon by Judge w.
H. Sanborn. OF Se United States Court
of Appeals. sit{ hg in chambers, and
acting on a BID OF complaint filed in
the United ST lee district court by
the North And scan company. which
alleges that tn Frisco is unable to
pay matured notes amounting to
$4,000
SIMULTANEOUSLY in Chicago the Chi
cago and Eas1ern Illinois Railroad
company, who's stock is controlled by
the Frisco, waapiaced in the hands OF
receivers by JMdge Carpenter in the
instance of the complaint of the Rail-
way Steel Springs company, one OF the
creditors.
Receivers and Attorneys.
/, Judge. Sanborn named Benjamin
winchell president of the Frisco, and
Thomas II. West, chairman Of the
board Of the ct. Louis Union Trust
company, receivers of the Frisco.
They qualified Immediately and fur
nished bonds Of 100000 each.
: H. s. Hess, of st. Louis, who repre-
scented the Frisco In the hearing, was
named attorney for the receivers. and
Thomas Fauntieroy, of st. Louis, was
appointed special master in chancery.
Judge Carpenter In Chicago APP
pointed W. ]. jackson. yice-president
of the Chicago and Eastern Illinois,
and Edwin W. Winters, of New York,
receivers for the Chicago and Eastern
Illinois.
The appointment Of 4 third receiver
for the Frisco " held in allegiance by
Judge SanbOrn. H& said the appoint
ment IL made will be from the ranks
entirely outside the Frisco manage
ment or those financially interested.
James Campbell, vice-president of
the road. and president of the North
American company. which made the
complaint. was suggested by Fred
erick W. Lehman for the receiver
ship board Charles Nagel represent
ed bondhoiders.
c. and f.. !. Contract Peculiar.
This afternoon il was admitted that
the Frisco is unable to meet the $780,
600 to the North American company.
According to the bill of complaint. the
Frisco has been carrying a heavy loan
since 1909, due TO a peculiar contract
the Chicago and Eastern Illinois At
that time the Frisco agrede to take
over 1s9.44s shares of common stock
and / 1000 OF preferred stock, the
common at 100 and the preferred at
$50. and pay annual dividends until
1910. the stock to begin 1912. The
dividends Of the common stock was to
be 10 per cent annually and per cent
on the preferred
For two years, the bill states, the
Frisco has been losing $4,000, 900 an
nually on the road, due to coal
strikes and the recent floods. Since
the agreement was made the Frisco
has been losing money on the diyi-
dend contract. the petition recites.
Between 100000 and 500. 600 will
be due in dividends under this con-
tract July list The Chicago and
Eastern Illinois will be due, $1,000
900 by the Frisco secured by mort
cages on the New Orleans, Texas and
Mexican railroad. The Frisco has
been paying from $1.00o,000 TO ST.
500, 900 annually on the bonds, but
the interest charge has been exceed
ing the net revenues of the road. ac-
cording to the bill of complaint.
Big capitalization.
The Frisco is a Missouri incorporat-
Louis. 1t has a trackage of 5.254
miles, 1,717 of which Ii in Missouri.
The remainder of the lines lie in Ala
hama, Arkansas. Kansas, Mississippi,
Oklahoma and Tennessee. The capt.
tai stock Of the company Is $500. 000.-
900 of which $2S,999,S60 Is outstand-
ing in common. $4.ssS.4s5. In first
preferred per cent and $15,999,447
in second preferred per cent. The
listed in June, 1912, ID &320,3l2, 443.
With the Louisville and Nashville. the
Frisco owns a controlling interests in
New Orleans, Mobile and Chicago
railroad. The Frisco owns the entire
stock Of the Fort Worth and Rio
Grande. Kansas City. Fort Scott and
Memphis, and New Orleans. Texas
and Mexican.
Reports that receivers were to- be
appointed were shown today on the
New York stock exchange in the price
of the second preferred stock, which
today had a high mark OF So a share
and low mark Of 1915 for 500
share. The closing price was 1925.
Burden Of the Law.
Recently enacted legislation by con-
gress and by the various States ira
versed by the system are blamed for
enormous expenditures which the bill
OF complaint States the road would
be compelled to meet. Because Of the
financial condition of the road. it is
stated that these orders and laws
could not be compelled with, thereby
jeopardixing the road because of fines
which might be imposed The fines
which the complainant feared would
have a priority over other debts. a
On the Mexican lines the out
breaks incident to the revolutions
in that country have eaten up profit
OF the road, the petitioner explains.
on connecting liness
Counsel for. the rocefyers said to-