New-York tribune., 1920-06-23
National Railroad
OF Hayti Receiver
Is Appointed Here
Il. L. Farnllan, of National
City Bank, Named 10 Run
Company III Bondi,olders'
Suit; Loan Now Sought

Roger L. Farnham, vice president Of
the National City Bank and president
of the National Bank of Hayti, was
appointed yesterday by Judge julius
N. Mayer of the United States Dis
trict Court as receiver for the Com
pagnie Rationale des Chcmins de Fer
d'Haiti, with a bond of $4,000 The
appointment was made in bondhold-
ers' equity suit brought by Jose NJ.
De Acosta, of SO West Fifty-ffth
Street, in behalf Of himself and other
creditors Of the company, which has a
concession for the construction and
operation of railroad through HaytL
When the World War broke out about
half of the railroad had been built, but
since then the company has been unable
to obtain funds to complete the lne or
pay the interest on its bonds, which
are guaranteed by the Republic Of
Hayti.
Receiver Farnham's appointment is
expected to preserve the government
concession. The Republic of Havti is
negotiating for a loan of S40.0O0GO0.
Mr.. Farnham expects to pay the com
pany's debts and complete the rail
rOa0 system.
The railroad, which has capital stock
consisting of 10000 shares of 500
par value, made a mortgage in August,
1911, to the Farmers Loan and Trust
Company of this city to secure an issue
of 100000 6 per cent gold sinking
fund bonds, payable in 1860 There
has been a default in the payment OF
the coupons of those bonds since 1914.
and De Acosta says that the interest
now due and payable aggregates ST.
169,Ol9. He also says that there is
a floating Indebtedness and accounts
due creditors for reconstruction and
tie rehabilitation of the railroad and
warehouses and wharves in Port au
Prince, Saint Mare, Gounives. Henry
and other cities.
caused the railroad to default in the
payment of It's debts, De Acosta, in the
complaint. says:
The World War, together with in
ternal revolutions in Hayti, brought
about a shrinkaee in the earnings o.
the railroad company and impaired and
prevented collection Of its revenues.
The failure of the republic to fulfill
It's guaranty of interest and sinking
fund with regard to the bond issue has
destroyed the credit and resources Of
the company and rendered it impossi-
bic for it to make further issues and
sales Of its bonds, and has delayed and
prevented it from obtaining credit to
finance further construction.
In addition TO its matured ndebt ed
ness of S1,169,0lS upon its coupons, the
company is heavily obligated for sums
due upon floating Indebtedness and ac-
counts for reconstruction and rehabili-
tation of the railroads and for material
and supplies furnished il, and is in
debted to its officials, agents and en-
ployees for salaries and services. which
obligations it is wholly unable to meet.
The company is insolvent and is un-
able 70 meet It's present Indebtedness,
and is and will be wholly unable TO
meet its obligations as they mature.
Tho concessions and the guaranty of
the Republic Of Hayti are Of great
value, and complainant therefore finds
it necessary 20 complete the system of
railways to preserve and obtain the full
benefits of the guaranty and conces-
sions. Such benefits are OF enormous
value to the defendant and its cred
itors and bondholders. and are ind.s-
pensabe to the existence and opera
tions of the defendant and the dis
charge of its liabilities.
"Under these circumstances, inter
vention by a court Of equity is impera-
lively required for the protection e
the rights of the complainant and
other parties in interest, especially for
the timely appointment OF a receiver
to take charge Of and preserve the
property of the defendant. continue the
operation of It's undertaking and col
lect and receive and properly anpropri-
ate the income thereof and collect and
recover the government guaranties.'