New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1916-07-21
A PETITION
FOR REMOVAL
OF RECEIVER
PITTSBURG TRUST co, TRUS-
TEE FOR BONDHOLDERS OF
NEW MEXICO CENTRAL
ASKS RECEIVER ELY TO
SHOW CAUSE

An order was filed in the District
Court for Santa Fe county this morn
ing directing Ralph {, Ely, receiver
of the New Mexico Central Railroad
to show cause on the 18th of August
before the court at Santa Fe why
he should not be removed as receiver
of the said railroad.
The order is the result of a peti.
ton which was presented to the
Judge of this district some days ago
and Which was also filed Saturday
morning July % in which the Pitts
burgh Trust Company as trustee for
the bondholders of the railroad ask
for Mr.. Ely's removal on several
grounds among which are the follow
ing:
The trust company alleges that Mr..
Ely has received from February 1915
to about the middle of June 1916, a
net amount for personal expenses of
$766.22. which they consider exces-
sive. The amounts drawn each month
for this purpose are alleged to be,
for February, 1915, $46700; March
January, 1916, $650ol, February $4s. 90
$40O. 90 July $4,000, August $4,000,
Sept. s457.50, October $402 so, No
vember $47655, December $l52712
January, 1910, S6509l. Febraury $450OO,
March $4,000 April $4,000, May
$4,000, June $65000, making a total
OF $8405S6. of which $SOO40 were
charged to general expense and
S76O622 was received by Mr.. Ely
personally
That Mr.. Ely has failed to report
to the court the amount of money
received from the operation of the
road for the past nine Months rs
required by the court and as was
done by his predecessor, that the
petitioner believes and charges it to
be a fact that practically all the
moneys which Mr.. Ely received has
been drawn from the trust fund and
expended by him in his personal ex-
pcnses in travelling from New Mex
leo points to Los Angeles, Detroit,
Chicago, Pittsburgh, New York city
and other points with the object in
view Of ehdeavoring to sell said rail-
road and that he has devoted but
a very limited amount Of time to
looking after said railroad so far as
its operation or to increase its re-
venues are concerned.
The trust company alleges that it
was its understanding that the op-
pointment of Mr.. Ely was for the
purpose of rehabilitating the road and
increasing its business, but that practi
cally all of his efforts and the large
amount of expense he has incurred
have been for the purpose of trying
to find a purchaser; that the expen.,
diture Of such money was contrary
to the purpose of his appointment.
The trust company alleges that
while the train service has been cut
from one train each way each day
to one train each every other day,
being half the amount of service
rendered by the previous receiver
there has been a steady increase in
expenditures incidental to the opera
tion of the road since last November
and that notwithstanding the d1r-
gerous physical condition Of the road
the replacement OF ties has decreased
materially since July, 1918. which
could have been 70 some extent pre-
vented and the condition Of the road
improved if the amount Of money
which the receiver has expended i'm
travelling about the country had been
spent in replacement, especially rail
road ties and bridge ties and similar
roadbcd Improvement.
That Mr. Ely has not Given the
oeration of the road any attention
and has not signed personally any
vouchers but those in connection with
the expenditures incurred and that
he is not in touch with the condi-
tions or the amount of revenue re- '
ceived from the operation other than
The amount he has personally received
and drawn. That the accounting has
been done in very inefficient way;
The sub ledgers have not been kept |
up; the claim journal almost neglect
I'd and numerous claims on file for