The weekly tribune and the Cape County herald. (Cape Girardeau, Mo.) 1914-1918, 1915-08-20
ST. LOUIS BANK
CANCELS SALE
OFC.G. N. NOTES
Mississippi Valley Trust Com
pany Says Unredeemed
paper will be Held.
SCHULTZ THINKS 1T
MEANS ROADS SALE
Receiver Expects Line Will be
Taken Over By New
Owner Soon.

The announcement made in St.
Louis yesterday that the Mississippi
Valley Trust Company had cancelled
the sale of notes aggregating 100000
and executed by the officers of the
Cape Girardeau & Northern Railway,
is believed to indicate that the Cape
road is soon TO pass into new hands.
The notes were given when a loan
was made by the trust company to the
Cape Girardeau & Northern, and were
secured by gold bonds in the sum of
$250,000. The notes were given to the
! Mississippi Valley Trust Company in
March of last year and were made
payable upon demand.
Payment was demanded by the
bank, but the railroad defaulted, and
the notes were then ordered to be sold
at public auction at the Court House
in St. Louis yesterday. A few hours
before the time set for the sale, the
Mississippi Valley Trust Company an
nOunced that the auction had been
postponed. When an inquiry was made
as to when the sale would be held, an
official of the bank stated that the
notes would not be sold.
Railroad men in st. Louis, who were
planning to bid for the notes, believe
the cancellation of the sale forecasts
change in the ownership of the rail-
road. Whether it is to pass into the
hand of the Frisco is problematical.
AS the Frisco is in the hands of a
receiver and its contemplated plan for
reorganization has failed, it is not be-
lieved it will attempt to take over the
Houck line. Under the ruling of
Judge Sanborn in the United States
Circuit Court, the Frisco Railroad is
compelled to carry out its contract to
take up the Indebtedness of the Cape
Girardeau & Northern Railway.
In its opinion, the court held that
the 106 miles of track and rolling
stock possessed an actual value, and
that if the Frisco preferred, it could
determine the value of the railroad
property and then pay the difference
between this sum and the amount the
Frisco guaranteed. This, the court
held, would relieve the Frisco from its
agreement to take over the road.
But to take up this amount and then
release its claim on the Cape Girar-
deau & Northern, would entail an i'm
mense loss to the Frisco. 1t is believed
by railroad men that should the Frisco
relinquish its contract to take over the
Houck line it would merely transfer
its full obligation to another road.
Since the Missouri Pacific and Iron
Mountain are now in the hands of a
receiver, railroad men say there is
slight probability of the Iron Noun
tain taking over the Cape Girardeau
& Northern. 1t is now thought that
the Cotton Belt will get possession of
the Cape road, if the Frisco casts it
off. The Cotton Belt and the Iron
Mountain have virtually the same
board of directors, and the same pur-
pose would be accomplished if the
Cotton Belt takes over the road.
The Iron Mountain and Cotton Belt
now enter limo, eight miles south of
this city. The Houck line tracks also
run into Illmo, and by the Cotton Belt
buying the Cape Girardeau & North
ern, both the Iron Mountain and Cot
ton Belt could enter this city. And by
running from Cape Girardeau to Per-
ryville and then extending the tracks
for a distance Of forty miles, the Cot
ton Belt and Iron Mountain from this
city could run into st. Louis over the
main line Of the Iron Mountain.
r. H. Schultz, receiver for the Cape
Girardeau & Northern, informed The
Tribune last night that he had been
informed that the Mississippi Valley
Trust Company had cancelled the sale
of the notes issued by his road. "Of
course, cannot say why this action
was taken after the bank had adver-
tised the sale, but presume some ar
rangement has been made to take up
these obligations. l imagine this
means that the road is soon to pass
under a new management"