The Birmingham age-herald., 1914-09-02
RECEIVER IS NAMED FOR THE T|DEWATER UPON THE PETITION OF THOMAS B. HALL Superintendent Ross Makes $25,000 Bond and the
 Operations Are Turn
 ed Over to Him
BILL AYERS COMPANY IS UNABLE TO PAY THE INTEREST ON BONDS
of Receiver, Pending Re- organization of Property, Said to Be Absolutely Necessary.
 Judge Grubb Takes Ac-
 tions After Hearing

On bill of complaint filed by Thomas R. Hall of Camden, N J.. in the United
 States court directed at the Birmingham, Ensley and Bessemer Railroad company l. W. Ross, who from the beginning has been in charge of the operations of the railroad was appointed receiver of that line by Judge w. l. Gruhb at hearing held yesterday
 The general creditors bill filed on be-
 half of Mir. Hall and of any other creditor
 of the defendant who may become party to the litigation, ayers that the company proposed to make default in the payment
 of S65,000 semi-annual interest que Sep tember 1, on it's bond issue. and that the road is unable to pay the interest on it's
 bonds and continue the profitable opera ton of its line. It is also averred that
 there is first mortgage outstanding in favor of the Equitable Trust company of New York, securing an issue of upwards
 of $2,500.000 of bonds and thaethe default in the payment of the interest would render the mortgage subject to fore closure.
 Reorganization Is Necessary The bill further stated that after de-
 fault it would be impossible for the rail-
 road to continue normal operations, and
 that it's funds and assets would be so
 nterfered with that the appointment of a receiver, pending reorganization of
 the property, was absolutely necessary
 for the preservation of the property and It's t,, ha ,f the public.
 The bill was presented to Judge Grubb and after notice to the various parties in interest. and hearing, Judge Grubb reached the conclusion that the appoint ment of a receiver was necessary and forthwith appointed General Superintend- ent I. W. Ross.
 The order appointing the receiver directs the latter to preserve, manage and op- crate the railroad, directs that all neces- sary expenses of operating the railroad be paid, and that all the wages and salaries of employees of the company in- cured within six months preceding the date of the order be discharged. It spe- officially enjoins the railroad company and its officers. directors and agents from interfering in any manner with the opera tion of the property. The bond of MT. Ross was fixed at s25,000, which was made and the operation of the road turned over to him.
 When interviewed shortly after his ap- pointment as receiver, MT. Ross said:
 The service will continue without n- terruption and every effort will be made to take care of the patrons of the line. The fmpossibility or completing the sys- tenn and making necessary extensions, which became certain .n the spring. has made the reorganization of the property inevitable. The average passenger haul is in excess of six miles per passenger, and while the public has patronized the line liberally it has become more and more evident that the construction of laterals and extensions would be neces- sary to increase the revenue of the line sufficiently to take care of the high cost and long mileage haul of the trunk lines
 Preparing Financial Statement
 "A complete financial statement brought down to September will be finished by the auditors immediately and made avail able to all parties interested The com pany has taken care of all liquidated and undisputed liabilities outstanding to Sep tember 1.
 Every effort will be made to continue the service in high state of efficiency and to deserve the generous support of the public that has been given to the enterprise during my connection with 1t as an operating company.
 MT Ross has held responsible execu- tive positions with the Memphis Street Railroad company and with the Mobile Light and Railway company, leaving the latter concern to come to Birmingham on September i. 1912, to begin the pas senger operation of the Birmingham, Ems ley and Bessemer Railroad company The first cars upon the system were op- erated under his supervision on Septem- Der D. 1912.
 The hope is expressed by those who are familiar with the condition of the property that the receiversnip will be tenn porary. and that a reorganization will be effected on basis which will make the necessary extensions and a comple- tion of the system possible
 The following extracts from the report of the president of the company. issued under date of August 26, 1914 will be of interest:
 Report of President
 "To the Holders of the Securities of the
 Birmingham. lInsley and Bessemer Rail-
 road Company:
 "An audit of the accounts of the com pany and complete financial statement. showing the cost of construction and the present nnanclal status of the company has been prepared; and duplicate sets of the schedules and accounts showing every expenditure, are on file at the company' a office in Birmingham, and in the office of the president. Morris building, Phila- delpha.
 "The acquisition of all frnchises, prop erty and equipment, and the construction of the railway have been accomplished under the construction contract with the Conttruction company, dated March 20, 1911, under which the railroad company agreed to deliver to the Con- company certain of the com panys securities for the acquisition of all necessary franchises and property and for the construction of power houses. sub- stations. equipment, and 4S miles of track. the companys system in the Birmingham district from the eastern limits of the city of Birming- ham to Bessemer, including a freight and passenger loop diverging from the main line at . point near Woodlawn, North Birmingham and Pratt City and entering the main line near Ensley. After the execution of tho con- tract it became obvious that the con- struction of the, proposed freight loop was Inadvisable. and it also developed that electric current could be purchased at rates which made the construction of q power plant inadvisable. In other import ant particulars the plans in contemplation when the construction contract was en-