New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-08
Receiver Tells of
Progress Made by
The NJ, K. & I.
No Interest Favored in Re-
porting on Roads Affairs,
Says c. E. Schaf

c. +. Schaff, receiver for the BIS
souri,, Kansas e. Texas Railroad, through
his attorney, fled q statement IN the
Federal District Court, here yesterday
in answer to the petition of Speyer &
Co., bankers, asking for the appoint
mcnt Of an additional receiver for the
railroad property, over the reorganiza-
ton of which lively alteration be-
tween various interests concerned has
arisen. The hearing on the petition
was held before Judge William c.
Hook, of Kansas, now sitting in tins
district, who, after the reading Of the
affidavit made BY Mr.. Schaff, adjourned
the hearing, stating that he expected
to announce to-day his conclusions on
the application made by Speyer & 60.
Mr.. Schaff in his answer stated that
while Speyer e. Co. may be interested
in the securities of the Missouri, Kan
sas G. Texas Railroad Company, they
have no standing in the Federal Court
as parties litigant, and therefore
should not be permitted to intervene
in the consolidated clause pending in
tho Eastern Judicial District Of Mis-
souri,. As holders Of two-year gold notes,
the receiver explained, Speyer & Co.
are already represented in the fore
closure suit by the Central Trust Com
party as trustee of the consolidated
mortgage and as trustee Of the collat-
eral note trust agreement.
The petition Of Speyer & Co., the
receiver further stated, "shows that the
main purpose Of it is TO have the
court ct this time express its opin-
ion that the proposed plan of re-
organization in course Of preparation
by Hallgarten & Co. and ]. & W.
Seligman & Co. is too conservative
and will make more provision for cash
for future requirements than in the
judgment of speyer & Co. Is neces-
sary"
Gives Information Freely
Mr.. Schaff denied that he has ever
in any way participated in any con-
troversies on the questions as TO the
amount Of money which should be ex-
pended in the first two years after
reorganization, or the prospective in
come of the property, both gross and
net, in the year 1920, but stated that
he has at all times furnished all in
formation and data available to all the
parties interested in the properties,
and whenever his opinion has been
asked upon any given subject he has
not hesitated TO give an honest one,
based upon his experience on the prop
erty both prior to and since the re-
Ownership. This, he said, he felt to
be his duty, and in this connection, he
explained, he has at all times fur
nished Speyer & Co. and their expert,
J. W. Kendrick, all information and
data called for, and furnished them
every facility at his disposal in the
eAdHlHaIlOH OF Ino properties.
He also admitted that his views were
closer to those of Cloverdals and Col
pitts than TO those of Expert Kendrick
with respect to the requirements of
the property for the first two years
following reorganization, and that he
estimated the requirements for those
two years at sl6,O00,OO0, whereas Mr..
Kendrick estimated them at 10000
900.
Says Lines Hold Own
The statistical statements which he
has submitted, the receiver said, con-
clusively show that the Missouri, Kan
sEs & Texas lines have not only kept
abreast OF, but in many cases have sur
passed, their competitors in the i'm
provement of transportation efficiency.
as we'll as in the development Of
freight and passenger traffic, and that,
Notwithstanding the fact that some of
the other lines, such as the Missouri
Pacific, the Frisco and Rock Island,
have passed through periods of re-
ceiverships and have been fully re-
habilitated.