The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-03-23
RECEIVER ASKED
|. FORL. & T.ROAD
BY UNION PACIFIC
Branch Line, AZ Miles Long, in
Financial Difficulty.
Break With Santa Fe Over
Operation of Connection.
DEFICIT LARGER EVERY YEAR
Ask Maintenance Under Own
Revenue-ImpOSSible!
Equipment-Only One LOcOmO-
tive and Three Cars.
DEFICIT LARGER EVERY YEAR
Ask Maintenance Under Own
RevenUe-ImpOssible?

Alleging that the Leavenworth and
Topeka railway, operating less than
forty-seven miles of line between
Leavenworth and Meriden, is insolvent
and that it's deficit is becoming
larger every year, R. W. Blair, gen
eral attorney for the Union Pacific,
today filed a petition in the United
States district court asking that a re-
ceiver be appointed for the road.
In the petition the Atchison, Topeka
& Santa F'e Railway company which
with the Union Pacific has been meet
ing the deficit of the alleged defunct
road also is made a defendant and
asked to make before the court an
accounting of it's claims against the
L. & T. A hearing has been set for
saturday morning at o o'clock before
Judge Pollock in Kansas City, Kansas
The petition filed by Judge Blair to-
day is generally looked upon as the
beginning of the end of the unfortu-
nate Leavenworth and Topeka which
has lowered close to the rocks since
its organization in 1900. While the
plaintiff asks that a receiver be ap-
pointed to run the road on its own
revenue, the feat is conceded to be
impossible. That a petition asking
for a sale of the roads property and
a final winding up of its affairs will
follow closely on the appointment of
a receiver is believed by officials in
close touch with the situation to be
the next step.
Financial Difficulties.
In the petition asking for a receiver,
the financial difficulties of the road
are recounted in detail. Since Novem-
ber 8, 1900, s25O,00O in bonds issued
by the Leavenworth and Topeka have
been received and held jointly by the
Union Pacific and the Atchison, To-
peka and santa Fe. according to the
petition. From the beginning, the L.
expenses and the Union Pacific and
Santa Fe jointly met the deficits. Fol-
lowing acquisition of all L. & T. bonds
in payment for loans, the two roads
accepted notes from the Leavenworth
and Topeka. Notes accepted by the
Union Pacific since July, 1911, total
$1S5,000. Notes totaling the same
amount are held by the Santa Fe. An
nual operating deficits of the road in
creased from $21. .222 in 1909 to more
than $4,000 in 1915, the petition re-
cites.
U. p. Refused Money.
The first direct step that has result
ed in the petition asking for the ap-
pointment of a receiver was made last
January when the Union Pacific an
nounced that it would refuse to ad-
vance any more money to keep the
Leavenworth and Topeka going con-
cern. Following closely on the Union
Pacifics refusal to lend the road more
money came a similar announcement
from the Santa Fe. The road was
consequently left stranded without a
cent in its treasury and without a bor-
rowing source, according to the peti-
ton.
The refusal of the Union Pacific to
advance more money to meet the de-
ficits of the road followed immedi-
ately after an order by the Public
Utilities commission directing the
Leavenworth & Topeka to add to its
service between Leavenworth and To-
peka an extra passenger train.
According to the petition filed by
the Union Pacific today, the total
equipment of the Leavenworth & To-
peka railway consists of one locomo-
tive, one combination baggage and ex-
press car, one passenger coach and
one flat car. For some time it has
been operating a mixed train between
its terminals. To add another passen-
ger train would necessitate the pur-
chase of additional equipment costing
at least $25,000 dollars in addition to
a further annual deficit that the
Union Pacific claimed would be added
to the roads burdens.