Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-12-26
RECEIVER NAMED
FOR THE DENVER
TRAMWAY LINES
Application Is Filed in the
United States District
Court BY the Westing-
house Electric Company.
(By The Associated Press,


| Denver, Colo, Dec 25.-Applica
ton for receiver for the Denver
! Tramway company, which operates
! the street car lines in Denver, was
filed in the United States district
court here Friday
The application was filed by the
Westinghouse Electric company, a
creditor. The tramway company
was granted its first franchise in
1885.
The petition alleges that the
company's deficit for the year 1918
was $118.S79, for the year 1919,
$26,422, and that the company had
defaulted in the payment of taxes
due the city of Denver in the ap-
proXimate amount of $4,000 1t
also states that interest now owed
on the company's bonds amounted
to figure close to $4,000.
Stenger Appointed.
Ernest Stenger, president and
general manager of the company
was appointed receiver by the
court.
The petition sets forth that out
standing bonds of the tramway
ltdCIl u LONui VI
900. and that various and sundry
banks are owed 100000.
The Westinghouse companys
claim for receivership is based
upon the statement for $13,577.08,
covering supplies and railway ma
terials furnished between July /
and December 1, 1920, for which
payment is stated to have been de-
manded.
The tramway company, accord
ing to the petition, has defaulted
upon the payment of various inter
est installments due for outstand-
ing bonded indebtedness.
This includes $S7,500 due De-
cember / on its collateral gold
notes, according to the petition:
$247,245 due November 1 on bonds .
secured by a first and refunding
fund and $12,075 due No
yember | on bonds secured by the
first and collateral notes of the
Denver and Northwestern Railway
The Total Overdue.
The total over due and not paid
bond and note interest Is stated to
be approximately $346,S00. In adj
dition, the claim is made by GER
tain holders of bonds that the
company has not met an
obligation to retire bonds amount
ng to $154,365. *
Approximately 1900 persons are
employed by the tramway com
)any as motormen, conductors and
shop employees and car men.
Various unsecured creditors are
wed approximately $4,000 for
uel and supplies, the petition
Itates, and the Bankers Trust
company of New York has a iudg- |
nent against the company for $4s,-
47.
Resume Of Strike Damage. 49,
A resume of the damage SUI
cred by the tramway company
Turing the recent strike of train
men is contained in the petition.
,ince the losses it's business suf- !
cred during the strike, the COM S
AMY the petition states, has been
Inable to restore its system to a
ondition such as will enable 1t to I
i've full service. In rioting grow
ng out of the strike seven persons
ost their lives.
The company's property Decem-
'er II, 1918, inventoried $45,674-
90, it is alleged. The company has
lot been permitted to earn in ex-
ess of per cent on that valua-
ion, and during the past year has
armed less than per cent, accord
ng to figures in the complaint. I
Sote is made in the petition that s
n spite of this low earning power |
he city of Denver has refused to
rant the company an increased
are. Operating expenses, it Is
tated, are at present approx
nately 100000 a year more. {
Because of the 1918 and 1919 I
eficits it is claimed 1t has been c
ecessary for the company to de-
ote all the net income of the road
D maintenance.
Revenue Decreased.
The total operating revenue for
he year 1920 has shown net de-
rease Of more than s675,000, 1t is :
lated, and as a result the oper-
ting income for 1920 will not ex-
eed 100000, with which to pay
ixes, meet franchise payments.
ay interest on bonded and floating
ebts and meet the claims of other
reditors amounting to over $780,