New-York tribune., 1918-01-08
To Consult With
McAdoo on the
D. & r. G. Mix-up
Various Factions To Be
Represented at Conference
To-day in Washington

Representatives Of the Denver e. Rio
Grande Railroad, the Western Pacific
and the Missouri Pacific are scheduled
to confer with Judge Horace Payne,
counsel for the Director General Of
Railroads. in Washington this morn
ing for the purpose of effecting an
adjustment of the $4,000, 900 iudg
ment awarded the Western Pacific
bondhoders in the suit arising out of
the failure Of the Denver e. Rio
Grande to live up to its guarantee Of
the principal and interest on 50,000,-
600 of the former company's bonds.
the largest holder Of Denver e. Rio
Grande stock.
Those who are expected to be pres
cnt at to-day's conference from this
city are A. j. Shores, of Chadbourne
L. Shores, counsel for the Denver &
Rio Grande; George W. Murray, Of
Murray, Prentice & Rowland, counsel
for the Western Pacific, and Carl A.
De Gersdorf, of Cravath & Henderson
counsel for the Missouri Pacific. Alvin
w. Krech, president Of the Equitable
Trust Company, which as trustee Of
the Western Pacific bondholders, acted
as plaintiff in the recent litigation. is
also expected to attcpd the conference.
Wants Case Reviewed
Before leaving for Washington last
night Mr.. Shores stated that as coun-
sci for the Denver & Rio Grande he
would ask the Supreme Court for a
review Of the case. This step, how
ever, is regarded as merely formal and
only secondary to the important nego-
tiatlons that are expected to be started
at to-day's meeting
Ac roc,1lt of tEo otto oh p,opt vro
ceedings on the Denver & Rio Grande
property in New York and Chicago, in
stituted by the Equitable Trust Com
pany almost Immediately following the
Presidents railroad proclamation, it
was learned for the first time that the
Denver company has not yet paid all
the coupons that were due on January
/. There also falls due on February
/ further interest payments Of ap
proximately Sl,000,000.
Denver & Rio Grande interests con-
tend that they can raise the money
needed to meet its fixed charges, but
are not inclined to take definite steps
in that direction until they are GER
in favor of the Western Pacific bond
holders. While they interpret the
Presidents proclamation as meaning
that no attachment proceedings may
be taken since the government took
charge of the railroads, neverth eless
they want this point made clear by
Mr.. McAdoo
Why Loan Offer Was Refused
Why the Denver & Rio Grande re-
fused to accept the offer Of loan Of
s1,5O0.O00 from the Equitable Trust
Company to effect payment of the Jan
uary l coupons was brought to light
yesterday. The explanation was that
the trust company demanded as col
lateral for the loan securities which
the directors of the Denver E. Rio
Grande declared they would not take
from the company's strong box for
fear that they might be ultimately in
cluded under the judgment Of the Cir
cult Court.
Counsel of the Denver & Rio Grande
said yesterday that the Western Pacific
bondholders are not expected to press
judgment at this time with a
view to forcing a sale of the Den
If such action should take place
the generally accepted Interpretation
of the Circuit Courts decision is
that the judgment stands only
ahead Of the stock and none Of the
mortgage issues. In the event of
a foreclosure sale, it is pointed out by
the lawyers for the Denver & Rio
Grande that in the present condition
of the railroad investment market the
holders of the Judgment would get but
little after the prior liens had been
satisfied.
The outcome of the Circuit Courts
mandate is awaited with much interest
in the financial district Tor these rea-