The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-21
I'm edlatc Cash Needs.

The Chicago Rock Island and Pacific
Railway Company is the largest rail,
road system in this country ever placed
in the hands OF receivers. The Union
Pacific and the Northern Pacific sys-
TENS when they were in the hands OF
receivers were not as large as is the
Rock Island. The ST Louis and San
Francisco Railroad Company, which IL
now in the hands Of receivers. has more
than 1000 miles less track than has the
Rock Island.
The financial requirements OF the
Rock island in the immediate future in
clude the so-called Central Trust Com
pany loan for 50 SOC. 000. which falls du.
on April 30: the serial payment. due
May I. amounting to about $l.I0o.ooo.
on the Choctaw. Oklahoma and Gulf
Railroad. and stock interest payments
on July |. about 100000 more. The
figures do not include the various sums
necessary To meet equipment obliga-
tons. provide new equipment and inn
provcments and the financing which the
road will shortly have to undertake.
Tho announcement of the appoint
ment of receivers for the Chicago. Rock
Island and Pacific Railway Company
came as a complete surprise to Wall
Street. Although rumors had been in
circulation all the morning that soma
thing was going to happen in Rock
Island" II was nearly l o'clock when
the official announcement of the re-
ceivership was made. While in well in
formed quarters II had been believed
that the Rock Island would have con-
siderable difficulty in pulling through
this month there was a disposition to
doubt recoivership. II had been felt
that whatever did occur would be put
off until the last of April.
Immediately following the announce
ment OF the receivership r NJ. Schu-
macher. chairman of the board of di-
rectors of the road. issued the follow
ing statement: The appointment OF
receivers for the Chicago Rock Island
and Pacific Railway Company by the
United States Federal Court in Chicago
upon the application of creditors was
assentod To by the president of the rail-
road because of the absolute inability
Of the president or the company 10 give
assurances to creditors that their obli-
cations would be met when due.
Just previous to April !. in order
10 meet requirements OF 81 .60o, 900 on
that date strenuous efforts were made
10 secure from various banking institu-
tons in New York a temporary loan.
This loan was finally secured at the last
moment by the personal Endorsement OF
~ - wv '''N'' . - - "Pb"'''' '''''
the company cannot be expected 10 con-
tinuc raising funds by such a method
Mu>t Have s2,OOO,OOO on May I.
"It il necessary TO obtain approyi-
uatcly S2.0OO.000 on May l. and with
much less active and attractive coll
lateral from a bankers standpoint upon
which TO borrow. Furthermore, up u
July | an additional So. 600. 900 will be
necessary The short time loan of
se.50O.OOO due on April 80 would only
hc renewed by the present holders upon
absolute assurance from the board tina.
It's finances for the balance of the calen.
dar year 1915 have been arranged
"As such assurance could not he
given II would have been necessary also
to meet this x25oO. 900 on Apru az
making requirement OF s45OO.DO1 on
that date,
at Is very essential for Tho proper
development and economical oporltinr
Of this property that many grades he
reduced that large amount of new
steel rails should he Immediately laid
for the safety Of both PASSENGER and
freight traffic and that 1000 frei,h,
cars should be ordered While car
equipment notes could be issued for SO
per cent Of the cost of tho freight car.
il would require 81 900 600 10 sunnIy
the other % per cent
IA receiyership m tho rrasent lima
is merely TO obtain tho nratec,io, -,
the court that m. coun,nv's ub,sical
condition and euulonlon, may h. ir,.
proved. its Temporary loans confined
and an opportunity be given for working