The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1913-06-05
FRISCO RAILROAD
GOES TO THE WALL
RECEIVERS NAMED AN HOUR
AFTER SAME ACTION RELA.
TIVE TO c. e. e. !.
100000 DEBT DUE JUNE ]
fhis Given as Cause Of Faiiure-Im-
pending Crisis Depressing influ-
ence on Stock Recently, 1t 10
Reported.

st. Louis, May 20. Thomas H.
West, chairman of the board OF d.
rectors OF the st. Louis Trust COM
pany, and B. l.. Winchell, president
of the st. Louis & San Francisco rail-
road company, were appointed receiv-
ers for the railroad in the federal dis
trict court here.
G. e. e. !. Receivers. First.
The appointment OF the receivers
here took place about an hour after
the appointment of ancillary receiv-
ers for the Chicago 4 Eastern 1lli-
nois, subsidiary of the Frisco, by
the United States district court in
Chicago. The ancilliary receivers are
William j. jackson, vice president OF
the Chicago & Eastern Illinois, and
Edwin w. Winters of New York. The
application for the appointment of re-
ceivers for the st. Louis & San Fran
cisco was made to Circuit Judge Wal
ter H. Sanborn, who came here from
st. Paul especially to hear the Frisco
lldIC0l Wy tllc ANOl III kAlllC1lC dl SO1A-
pany, which is said to be creditor to
the Frisco to the extent of $400,000.
A receivership was urged as the only
solution of the financial difficulties
of the road by James Campbell of st.
Louis, president of the North Ameri.
can company.
The immediate cause for the re-
ownership was the maturing on June
l of short time notes issued by the
railroad for $2,25O,0o0, which bear S
per cent. interest.
Depression Of Stock.
The impending crisis in the affairs
of the Frisco has been a depressing
influence on it's stock for some time,
and last week Chairman Yoakum, of
the railway board of directors, came
20 St. Louis to consult with local in
terests concerned in the welfare of
the road as to the best course to pur-
sue. At first, it was rumored that
some means would be found to tide
the railroad company over it's pressing
necessities, but this hope was dissi-
pdtCu Wllcl JuuSC oouUOIli, WHO
here to sit as district judge in the
matter, and attorneys and directors
for the railroad went into secret con-
ference.
The application for the appointment
of receivers was laid before the court
by Henry S. Priest, representing the d.
rectors Of the railroad and the prin-
cipal bondholders and acting in be.
half of the North American company.
He requested the appointment of Mr..
West and of Mr.. Winchell.
The North American company is un-
derstood to hold as collateral on it's
loan of 100000 all the first mortgage
grant of 1,250O00 acres in Arizona
and New Mexico and 100000 first
mortgage bonds of the New Orleans
Texas and Mexico Railroad company,
a subsidiary OF the Frisco.
Troubles Long Standing.
The financial difficulties of the rail
road are of long standing and are at
tributed in part to the southern floods
of 1911 and 1912, in which the rail
road sustained severe losses, to the
I increased wages of railway employees
and to the high price of money The
ownership Of the Chicago and Eastern
Illinois, it is stated, also has proved
financial drain on the parent sys
tenn.
The ST. Louis and San Francisco
railroad, though an old line, was Ions
leased to the Atchison, Topeka an6
Santa Fe. In 1896 the road again be
came independent. At that time its
mileage was about ] 500 miles. Foul
years later it absorbed the Kansas
City, Fort Scott and Memphis, extend
ing from Kansas City to Birmingham
Ala, and in 1904 it acquired the Chi
cago and Eastern Illinois.
In 1903 the Frisco became merged
into the Rock Island system. Thi!
merger continued until 1909. In tina
year the Frisco passed into the hands
of it's present owners. It's mileag,
now totals over $500.