The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-08-17
RECEIVERS ASKED MONDAY
Big Sums Owed Steel Company
for Rolling Stocks.
Lines Are Unable to Pay Inter-
est on Debts.

St Louis. Mo, Aug benjamin
F. Bush. president and chairman of
the boards of the Missouri Pacific and
of the St Louis, Iron Mountain &
Southern railways, was appointed sole
receiver of the two lines by Circuit
Judge Adams at Woodstock, Vt, to
day
1,he roads today consented to the
appointment of receivers as requested
late Monday in a petition filed in the
federal district court.
The Missouri Pacific filed an answer
stating that the allegations in the re-
ownership suit were true.
Edward J. White, general solicitor
of the Missouri Pacific system, was
appointed counsel to the receiver; and
George G. Hitchcock, a St Louis at
torney. was appointed master
Suits Filed Monday.
The appointment of a receiver for
the Missouri Pacific railroad and for
the st. Louis, Iron Mountain q South
ern-the two lines forming the Mis-
souri, Pacific-Tron Mountain system
with 200 miles of track-was sought
in the federal district court here late
yesterday.
Two district receiverehip suits We're
brought by the Commonwealth Steel
company, a New Jersey corporation
which operates a large. steel mill in
Granite City, Ill One suit was di-
rected against the Missouri Pacific
and the other against the Iron Noun
tain.
The petitions will be heard by
District Judge Dyer today.
~ Debts on Rolling Stock.
The suits are based on claims which
the Comm OnNealth Steel company
filed against the two roads-a claim
of S145,000 against the Missouri Pa
cific and a claim of $4,000 against
the Iron Mountain. Both claims are
for railway rolling stock and other
supplies
Payment on both claims. it is as
serted, has been demanded-and re-
fused.
The appointment of receivers is
asked on the ground that other cred
tiers may bring suit against the rail-
ways which may operate to break up
the unity SyStem-a unity essential to
its proper operation as public car
rier-anG prejudice the interest of
various creditors
Each petition goes into detail as to
the obligations of the defendant COM
panies and as to their lnter-rela-
tons.
NJ p. in Heavy.
The suit against the Missouri Pa
cffic says that the company owns
377S miles of track-of which 901
miles is in Missouri, 2, 35s in Kansas,
371 in NebraS ska and 152 in Colo
RADIO. The various obligations of the
Missouri Pacific are set forth and
stated
charges exceed S7,70O, 200; that the
net ircome is insufficient to pay the
interest.
On September 1, 1915, it is stated,
interest charges totaling S1,S49,00O
will be due. Sufficient funds to meet
these interest charges, It is stated,
NAV not be available and there will be
danger of a suit
Concerning these recent attempts of
the Missouri Pacific to extend its per
cent gold notes to the amount of SEA
100000, the petition says that holders
of more than million dollars of these
notes declined to join in the extension
and there is danger that they will sue
to enforce their claims.
Surety for Iron Mountain.
It also states that the Missouri Pa
cific is the guarantor OF S1,0O0,0o0
demand notes of the Iron Mountain;
that the Missouri Pacific is defendant
in one or more suits for the refund of
excess charges collected while the
Missouri 2-cent passenger rate and
maximum freight rate laws We're in
litigation-excess charges exceeding
100000 and fear is expressed that
other suits may be instituted unless
these claims are paid.
The company, it further is stated,
has an outstanding floating indebted
ness of more than 100000 and that
of this more than $3,5O0,Oo0 is over
due which the company is unable to
creditors of this claim may bring suit
resulting in the breaking-up of the
system into separate parts, though the
only way the company can pay it's
floating debt is by the operation of the
system as a whole.
The further statement is made that
the market value of the 5 per cent
first and refunding 50-year gold bonds
of a face value of 500, 100000 and the
market value of the 40-year 4 per cent
gold loan bonds of which $37,o00,0OO
are outstanding has fallen to less than
40 per cent of the face value.
This is cited as evidence that the
credit of the road has been impaired
so that the company will be unable to
procure loans to meet its financial OBJ
legations
War Causes Trouble.
The financial disturbance occa-
stoned by the European war, it is stat
ed, will make it difficult for the COM
pany to meet its financial require
mentS.
Attention is called to the fact that
the Missouri Pacific company and the
Iron Mountain on July 6, 1915, pro-
mulgated plan for capitai re-adjust-
ment, and that in that plan the COM
panies acknowlede tiaas unless the
plan could be carried through soon the
Missouri Pacific would be unable TO
meet maturing obligations.
Fire1ess Cookers at Forbes.-Adv