Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1922-09-08
c. & A. ROAD IN
RECEIVERS HANDS
Loss of Revenue Because OF Coal
Strike Cause.
FIRST BIG LINE TO FALL
William w. WheeIock and William G.
Bierd, Latter for Many Years
President of Road, Are Named
by the Court.
FIRST BIG LINE TO FALL

Chicago, Aug. 31.-The Chicago &
Alton railroad was placed under fed
eral receivership here. 1t is the first
big road to fail during the present
period of Industrial unrest.
The bankruptcy petition was filed
before Federal Judge George A. Car
penter by attorneys representing the
Texas company (oiD, holding claim
OF $4,000 against the road. The petit
ton was not fought by the company.
The Chicago & Alton has Ito miles
of track, connecting Chicago, st. Louis
and Kansas City.
William w. Wheelock and William
G. Bierd, the latter for many years
president of the road, were appointed
receivers.
Coal Strike Is Blamed.
The coal strike was the principal
contributing cause of the failure, ac-
cording to Silas FL. Strawn, attorney
fol. the receivers. Mr.. Strawn said the
Chicago & Alton is one Of the heaviest
coal-carrying roads in the Mississippi
valley. An immense tonnage Is hauled
from the Illinois coal fields to the
Great Lakes and to st. Louis and Kan
sas City. The coal strike became eff
fective in April. Since then revenues
Of the road have steadily fallen.
The railroad strike proved costly.
One division Of the road was tied UP
by walkout Of fremen and trninmen.
For several years the company has
been unable OF meet it's expenses, ac-
cording to Mr.. Strawn. The company
Is weighed down with bond issues ag
gregating $91, 100000 and S14,O00,O0O
in unpaid interest and current bills.
The road will be operated under the
receivership, 1t was announced. There
will be no change in the attitude of
the road toward it's striking employees,
it was said. Under a receivership the
road is doubly sure Of federal protec-
ton for its workers, it was explained.
''The company is admittedly insolvent
and no opposition was made to the
creditors motion for the appointment
of a receiver" said Mr.. Strawn.
Everything will be done to effect
reorganization which will place the
road on more firm financial basis"
The receivership caused no surprise
in Chicago financial circles. The COM
pany's stock has been declining for
several days. Bonds have also slumped.
To Suppress Sabotage.
Washington, Aug. 31.-Under direc-
ton of the President, the Department
Of Justice is devoting it's entire energy
to the suppression Of sabotage and dis
orders by disgruntled rail workers.
Every effort will be made to protect
lives and property Of the rail system.
If interference with trains can be
prevented and order restored, it was
said at the White House, the railroads
will recover within two weeks. There
Is already a marked improvement in
transportation, 1t was claimed.
Representatives Of the railroads met
here to take up legal aspects Of the
situation. It was decided to make
formal complaint to the Department
of Justice in every instance of sabotage
and disorder.
Employees Of the nonstriking unions
were charged with being responsible
for deliberately crippling rail equip
ment. More than thousand cars on
one road were found to have their
journal boxes filed with sand. Air
brake hose was found punctured. Of
ficials declare that this could not have
been done except by employees work
ing on the trains or in the terminals
The attorney general has been urged
TO assign Investigators and prosecute
the men responsible. All evidence in
the hands Of the officials has been
turned over to him.