The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1917-05-09
$50 CARS OF FREIGHT A
DAY OFFERED, ROAD HAS
$50, BUT WILL GET 900
Road Heretofore Has Not
Been Able To Fill Orders
With It's Few Cars
ALL INDEBTEDNESS PAID
$4,000 Shop For Pensacola,
Shipping Capacity Of
Wharves Be Increased
ALL INDEBTEDNESS PAID

With the appointment of a receiver
for the G., F. & A. Railroad, and the
issuance of receivership certificates
to satisfy all back wages, and unse-
cured Indebtedness, and also to put
several hundred thousand dollars
into new development in order that
the railroad may be able to handle
the 140-150 carloads of business 4
day that is offered, but which it has
not been able to handle because of a
lack of rolling stock, step has been
taken looking to the fuller develop
ment of the port facilities of PEN
sacola.
Railroad Expert, Receiver.
F. T. Dewey, of Boston, said to be
one of the recognized railroad experts
in The United States, was appointed
operating receiver, and Phillip BeaII,
who resigns as assistant to the dis
trict attorney, co-receiver. The ap-
pointmerts were made by Judge w.
B. Sheppard, of the United States
district court, after carefully consid
ering the qualifications of the two
gentlemen mentioned, the interests of
the bondholders, and the future of
Pensacola.
Constructive Receivership.
The reCeivership is a constructive
one, not destructive. AS explained
by Fl. c. Vaudeville, an attorney
from Elmira, New York, and Liston
L. Lewis, an attorney from New
York City, it is a creditors action in
equity for the appointment of a re-
ceiver to protect and conserve the
assets of the company and assure its
continued operation.
Coupons on no bonds had been de-
faulted and the next dividend day
was scheduled for July I, but, as Mr..
Vaudeville, said, it was clear that
default would then be made, where
fore the present action was taken.
Not l.. & n. Control.
"Does this action mean that the
G., F. & A. has been absorbed by
the L. & NJ, or has gone under L &
n. control" the interviewer asked.
absolutely not" replied Mr.. Lew
is. "The ownership of the property
has not changed in the least-the
outstanding bonds are the same al
they were before. Ninety per cent
of the bondholders were represented
at the application for receivership
and consented to the appointment.
The L. & n. hasn't so much as a fin
ger in this"
"The company was operating at a
loss,' he continued, Operating earn
ings not being sufficient to pay ex-
penses and interest on bonds and pro-
vide for Improvement. 1t didn't have
it's freight orders. A hundred and
- 81
loads of freight were offered daily,
and even with those cars that We
will rebuild, the present equipment
could afford at the outside only $50
cars in all"
VIII Have 900 Cars.
Arrangements have been made
with the Lackawanna Railroad for
300 freight cars, delivery to begin
in two weeks time. This is first rate
stock and is sold only because the
/ Lackawanna is putting in steel stock.
/ Future deliveries are also contracted
| for so that by the end of the wear,
the G., T. & A, counting equipment
available here, will have 900 cars; an
| investment of $500,000 in freight roll
| ing stock.
The nine engines, in good condition,
| which the road now possesses, are
said to be sufficient for handling the
/ business.
/ Big Saving.
"Last year." said Mr.. Vaudeville,
"the G., F. & A. paid a car rental
bill of $25,000-a load too heavy to
be carried by gross earning capacity
of 100000. This $4,000 will be
| saved this year"
Besides cars, the company will
spend $4,000 on track extensions to
various industries in or near Pensa-
| cola, in making a marine track ex-
! tension to accommodate IS addition
al cars, so as to develop shipping IA
cilities, build sidings, platforms etc,
| Continued on Page Tsyol