| Show RECEIVER NAMED j I FOR TOY KATY ROADS President Continued in Management Under I 1 I Orders of of Court UNABLE TO PAY PAYOFF OFF NOTES t t. t Action Result of Failure to toi toi i i Secure Extension of Entire Issue St. St t. t Lou Louis Loui Sept st 27 The Th The Rt Katr railway railway rail rall- Wa way system embracing the thc Missouri I Kansas Karsa s Texas railway n a Kansas corporation corporation cor cor- and the Missouri U Kansas Texas railway of oC Texas toda today today- went into nto the hands of oC a receiver This change chan affecting a system with an aggregate mileage of oC more than miles was brought nb about ut b by independent Independent Inde Inde- pendent orders filed In tho the United States district courts at St. St Louis and Dallas and was a result of ot a a. friendly a agreement between certain creditors and the mont of tho two companies compa compa- nies that comprise tho Katy system Charles E. E president of or both roads was named sole receiver of oC each As a n result of ot tho court orders to today to- to I day four of ot the great railway systems connecting the west with Te Texas as gulf gul ports port now sire In the tho hands of oC tho federal courts the courts the Rock nock Island system tern tem the Missouri Pacific Iron Iron Mountain Moun Moun- tam tain tho the St. St Louis Louis' San Fr Francisco and tho the Katy Tho The order throwing tho the Missouri Kansas Texas the tho Kansas corporation corpora corpora- tion Into tho the h liana hands 19 of ot a R. receiver was signed jointly by Clr Circuit Judge Elmer B B. 3 Adams and District Judge David Dald P. P D Dyer er The order affecting the Te Texas as lines was signed by District Judge E. E It fi Meek of oC Dallas J by b- The receivership order signed here was as Issued on the petition of oC two to creditors the Creditors the Railway Steel Spring company of ot Now Jerse Jersey and D. D B. B Hussey Hus- Hus JC sey of of St. St Louis who t had a 1 claim of for tor tics and equipment Tho order Issued In Texas was wag granted d on the petition of ot Mr Hussey Husse acting for himself and other creditors The railway company compan filed an nn nn- nn 6 4 1 I 1 1 bV a. on- on L LU IV LiI 11 I LV J the appointment of ot a n receiver and ad admitting ad- ad the allegations of oC the petitions petitions petitions peti peti- as to the inability of ot tho road rond to meet obligations already matured The answer consented to the oC oCR R a a receiver on condition that the court Instruct him to comply with tho the terms a of an order issued by bo the district court of oC Montgomery county count Kan after aCter a n compromise had been reached by the thc railway with tho the state of oC Kansas In a asuit asuit Bult suit of the oC-the The latter to force the tho railroad r I to maintain its general offices and shops in Kansas The failure allure of holders of ot face tace of or outstanding two- two year car 5 6 per cent notes to con consent ent to nn an extension for lor one ono year ear at 6 per por cent brought blought about the tho decision of ot the railroad railroad rail rall- road rond management to throw the tho railroad railroad railroad rail rail- road Into the courts to prevent tho the fil filing filing fil- fil 11 ing of Individual suits that might re result re- re suit sult in a a disintegration of ot tho the system I The year two note issued to the ex extent extent ex- ex tent of ot was authorized b by bythe bythe the the directors but only of ot these notes were sold Statement by President Pr President of oC tho the Missouri Kansas Texas who was appointed receiver of ot tho the system and of ot the Texas lines Issued the following 3 statement this afternoon The directors reluctantly acquiesced In the receivership but as several suits have been brought against the company by holders rs of or u notes aided In several cases b by attachment proceedings pro pro- and other ether suits have ha been threatened It was decided the Interests Interests interests Inter Inter- ests of all could be by a assenting assenting as- as to the courts court's taking taking- charge of ot the property The Tho directors and anc officers were hopeful last spring when spring when they asked for an extension of ot these notes for tor one year year that that the they would ho bo able to work workout workout workout out a plan of oC refinancing that would enable the company to pa pay them off and the they have havo been continuously since then endeavoring to to accomplish this but owing to heavy 10 losses ses' ses In tho the Galeston Galveston Gal- Gal veston eston storm and continued floods Inthe Inthe in inthe the southwest which have havo impaired the earnings of oC the company and In Increased Increased increased In- In creased Its expenses and further owing ewing to apathy of oC Investors toward railroads railroads rail rail- roads It has ha been Impossible to ac accomplish accomplish ac- ac what the directors set out outto outto outto to doThe do The They are however hot still in operation co-operation with bankers hankers with the preparation of oC a n. plan for tor readjusting the finances of ot the and company providing providing pro pro- viding for tor Its future requirements As receiver I shall do everything that I can to conserve consel the company's property anti and assets and to Improve the tho standard of or service ser to the tho public I 2 shall hope to tu have the tho support and operation co-operation of or the thc company's friends and patrons The friendlier sentiment toward railways which tho the public Is beginning to manifest will soon de develop do- do elop into practical aid nid and lato the tho distressing condition into which tho the country's railroads s have fallen durIng during dur dur- I ing recent years cars No o changes in th operating operating- organIzation organization organ organ- are 10 contemplated The officers and employees of ot the company compan who have o worked so hard and efficiently during m my administration as aa president de deserve great credit for the tho results which have hn been obtained in the taco face of the adverse ad traffic and ancl operating i conditions which have ha prevailed I II I |
