Salt Lake Tribune | 1913-09-21 | Page 4 | 'Frisco Road May be Put on Paying Basis

'f RISCO HDSD rW BE POI 01 PAYING BASIS Judge Declares Operation of the Property a Credit to the Receivers. ST. PAUL, Sept. 20. Indications that' the Prisco railway system aoon may be placed on a paying basis was given at today's hearing before Judge W. If. Sanborn of the United States district court, here. "The operation of the road,' said Judge Sanborn, "has been a credit io the federal receivership. receiver-ship. The outlook is far better than it was a few months ago. Wo ought to know by October lo whether the road will be able to pay other than the preferred claims against it." The preferred pre-ferred claims are estimated at $3,000.-f)00. $3,000.-f)00. The payment of $132,000 to tho North American company for the joint use of terminals and yards at 'New Orleaus was taken under advisement b3' Judge Sanborn, The court refused to allow tho receivers lo sell $584,000 worth of tho Frisco bonds now held by tho St. Louis Union Trust companv as security for notes riven by the Frisco, amounting to more than $1,300,-000, $1,300,-000, but ordered the receivers to dis-poso dis-poso of the Rio Grando railway, a subsidiary, sub-sidiary, within six months. Tho request of the receivers for an order to pay $78,000 in I crest to carry certain securities of the Ran B "to road, a short line in southern Toxas. was denied bv the court, who said it was too speculative. The companv will default on the bonds. The recovers will leave for St. Louis tomujit.