The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-04-19
Fight in h. C. Saturday To
Knock Out Forfeit Clause.
IT MUST BE WELL OPERATED
Patrons Need and Should Have
Honestly Run Road.
Orr War on JOhnsOn-Trapp
Combination Is Heated.

Patrons of the Leavenworth & To- !
peka railroad who provided Sloo.Veo
in subscriptions for the purchase OF
the road, may kiss a $4,000 good
faith fund goodbye in Kansas CITY
Saturday morning and retire from the
spotlight as railroad operatives. IN
less the Johnson-Trapp mushroom,
ma gnates can compel the federal court
to modify its decree, the real patrons
and investors may have to quit the
game. Patrons of the road are de-
c1ared to have been deceived in max
ing investment in the property. The
real patrons have been honest and en-
ergetic in their efforts to save the
road.
Investors in the project to take over
the L. & T. are declared to have been
led to believe that they might junk
the road and that its junk value was
much greater than the sale price to
the patrons. There seems to have
been little question that the junk val
ue was estimated at $3.50. GEO and that
the court provided that the patrons
might buy the road for $4,000, but
it is understood that such purchase
shall not entitle the purchaser or his
successors or assigns at any time to
dismantle or junk said railroad or any
part thereo6" That was the courts
decree.
When the court provided that the
patrons might take, over the road, it
provided emphatically that the prop
concern-not a get-rich-quick toy for
certain shrewd stock company organ
izers. The terse provision from the
courts decree, as quoted above, was
the hame and eggs of the entire rams
action. Yet the court didn't stop
there. The court wanted to be sure
that there wasn't a leak in the gas
pipe. So this provision for the pros
pectiVe purchasers: 81
And shall ob1igate themselves to
cOntinuOlISfV n
the future as a. going concern, and
shall also make to the United States
| a bond or obligation to be approved
by the clerk of this court, conditioned
in default of said agreement to con-
tinuously operate said road, to pay to
this plaintiff or his assigns, all dam
ages by him sustained in not being
| awarded the right to dismantle and
sell said property at this time in the
most advantageous manner" z-1t
No Chance for Speculation.
These provisions enabled the pa
irons to buy the road at one-half its
junk value. Yet it removed the ele-
ment of speculation which might be
or possibly Washed before the pa
| irons. After bidding in the road, the
| Johnson rapp'' in writing agreed
to abide by the courts decree.
And the next day the johnson
| Trapp' pool sought to dodge and sell
| the road from under the innocent non
investing patrons, declares James w.
! Orr, attorney for the receiver, in a
statement today. One day after. de-
| post of $40, 600 was made on the DUR
| chase price, Fred s. Jackson asked the
court to wipe from the records that
| part of the agreement compelling the
| purchasers to operate the line
If the court refuses to set aside its
! original decree and to wipe out the
sale agreement, johnson and Trapp
ana their associates must lose their
| $1,000 deposit or operate the road
| at an admitted loss and provide to
| the government a bond in sufficient
/ amount to insure future good faith
The hearing in Kansas City Saturday
VIII determine the extent to which
/ johnson and Trap will willingly bow
| to the courts order
Will the Road Pay:
Orrs statement of the position of
| the receiver is that the court order
be complied with. If not he asks
that the road be turned back Sever
| al experts have said the road cannot
pay expenses. For the good of the
| patrons, however, it is hoped that the
experts are wrong, because the terri
tory needs, and should have a good,
practical operated railroad
They know as we'll as the e,xnerts
who have tried it, said Orr of John
son and his close associates, that the
road cannot be made to pay 'operating
expenses and are now trying to esca pc
the consequences of their bid
| In his reply to Orr's recent state
ment, johnson said the interview af-
| forded him much pleasure. He also
said: In fact, the committee is
estopped from spending the money
raised for the purchase of the proper
ty unless it is given free of every
claim or lien of every character" To
which Orr replies:
| II am glad the interview to W hich
Mr.. johnson objects has afforded him
amusement, since that matter will
likely. furnish him no other oppor-
tunity for smiling, as there is a de-
| post of $4,000 earnest money of the
! funds subscribed by the farmers to
4 be forfeited upon failure to comply
| with the conditions of his bid, and he
says he is estopped from performing
| these conditions \