Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-16
BARGAIN POSSIBLE
IN RAILROAD SALE
Kansas City and Mexico
Line Drawing Attention of
Big Banking interests.
BY j. &. ROYLE.

Special Dispatch to The Star.
NEW YORK, February 16-Railway
men today are watching with the
closest interest and attention the
Fate Of the Kansas City, Mexico and
Orient railroad. which has been or
dered sold by Judge John c. Pollock
of the Federal Court of Kansas City.
to satisfy a federal loan of $4,000, 900
extended to the road by the govern
ment three years ago.
The road has had rough shedding
In recent years, but prospects have
been brighter in the last six months
and many railroad men feel that
perhaps choice property may be
picked up at a relative low figure. So
extensive is that feeling, however,
that the bidding at the sale which
will take place at Wichita. Kan.
promises to be extremely lively.
Mexican Aid Promised.
The line was designed to run from
Kansas City through Kansas, Okla
homa, Texas and Mexico to Topoio-
bampo on the Gulf of California. The
road operates line in the northern
part of Mexico. which. with the ex-
ception of gap of l9e miles. would
connect the eastern and western Mexl-
can coasts. Revolutionary activities
have hampered construction and ope-
AdllOll, out 1TeSlueHl oDEcsoli ha .
promised the aid of the Mexican gov
eminent as soon as that country is
again on a stable footing.
The Orient has been in the hands
of receiver for years, but finished
1923 only about $4,000 short of pay
ing actual operating expenses. me
thing, however, which has turned the
attention of railroad men to 1T recent
~ has been the discovery of an en-
tensive oil field in Reagan county,
Tex. This field is said by biologists
to be one of the richest in the state.
1t is owned in large part by the Uni
Nersity OF Texas and is neins re Tea
veloped by large oil companies. me
Orient is the only road when serves
this territory.
Case I'm Supreme Court.
The outcome of case which Will
be heard by the Supreme Court OF the
United States February 20 Will nave
an important bearing on the bidding
at the coming sale. The Interstate
Commerce Commission in 1922 grant
ed the road a greater share of freight
revenue derived from the handing
Interchange traffic, but the order o.
the commission was tied up by an
injunction. 1t is an appeal from the
injunction which the Supreme Court
will hear this month: a declslon
favorable to the road would mean
the payment of $4,000 in back reFe-
nue., according to Clifford Histed,
general solicitor of the road, ana
greatly increased income in the fu-
ture.
So far neither Histed nor other Of
ficials of the road admit knowledge
of any plan for the purchase of the
road or its consolidation with othef
carriers. Specific denial OF such m
tent so far as the Atchison, Topeka
and Santa Fee was concerned, has been
entered by t. j. Engel, vice president
of that line.
Bankers Said to De Interested.
However, rumors that banking in
terests connected with other south
western roads, especially those IN the
same group with the orient, are in the
tentative consolidation of railroads
proposed by the Interstate Commerce
Commission. Among the latter are
the Missouri Pacific. Chicago and
Eastern Illinois, Kansas City South
ern, Kansas, Oklahoma and Gulf,
Texas Pacific, New Orleans, Texas and
Mexico, and the International and
Great Northern. Among the ROADS
outside this group which are rumored
to be interested is the southern Pa
cific, which also operates lines In
The date of the sale has not as yet
been fixed by the court.
Problems of Shoe Manufacturers.
Shoe manufacturers and distribu-
tors, who have recently been holding
their annual meetings, still seem to
have one Of their major problems un-
solved That is the instability of
trade occasioned by the frequent
change in styles of women's shoes.
Retailers have shown plainly they
were afraid to carry large stocks. for
fear they might be caught with I'M
salable styles on their hands.
The makers and jobbers alike con-
denim this trend, but no method has
been suggested to curtail the efforts
on the part of the makers to produce
new and novel styles which will
please the fancy of the public. Eff
forts to reduce the expense devoted
to displaying these new styles 50
far have met with little response on
the part of the manufacturers.