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Show RECEIVER If BE APPOINTED FDRJAILROAD Bondholders of Western Pacific Prepare to Act as Soon as Interest on Mortgage Is Defaulted. NETV YORK, Feb. 27. Application for a receiver for the Western Pacific railway will be made after the railway will have defaulted the interest on its first mortgage bonds due March first, according to announcement made today after a meeting of the directors of the Denver & Kio Grande Railway company, com-pany, which controls the Western Pa--cific. The proceedings, it was said, will be of a friendly nature. This method, it was said, has been decided upon as the best course to pur-Eue pur-Eue in adjusting the company's financial finan-cial difficulties and its relations with the Denver & Rio Grande. To Issue Statement. Eankers representing security holders of the two properties were to meet this afternoon to discuss the situation. It was said that after the meeting a statement state-ment would be issued in their behalf. The Western Pacific railway was incorporated in-corporated by the Gould interests in California in 1903, its main object being to give the Gould sj'stem of railroads, then at its height, an outlet to the Pacific Pa-cific coast. The line was to extend from San Francisco to Salt Lako City, a distance of slightly more than i)00 miles, with a number of small branch lines in California. Cali-fornia. Connection was formed with the Denver & Rio Grande, which eon-trolled eon-trolled the company through stock ownership, own-ership, at Salt Lake City. ' The Western West-ern Pacific was turned over to the operating department of the Denver & Rio Grande in July. 1911. Bond Issue Used. The following year arrangements were made with the Denver & Rio Grande and banking mtcre?ts identified with the latter property to place at the disposal of the Western Pacific the Sroceeds ot $2,500,00'! Denver & Kio rande new issue 7 per cent adjustment ad-justment bonds. This money was used to improve the Western Pacific 's main line at and around Sacramento, Cal. Western Pacific 's capital stock amounts to $75,000,000, of which the Denver & Rio Grande railroad owns $50,000,000. Its bonded debt includes $50,000,000 first mortgage G per cent gold bonds and $25,000,000 second mortgage sinking-fund 5 per cent gold bonds. The fate, of the Western Pacific road excited little surprise in financial cir- cles, where its precarious condition was a matter of general knowledge. Thomas L. Chadbourue, Jr., special counsel for the Denvor & Bio Grande Railroad company, issued a statement, in part as follows: The board of directors of the Denver & Kio Grande Kailroud company has for a number of davs been in conference with representatives repre-sentatives of the largest bond holding hold-ing interests. These conferences have now reached a point at which evervono feels confident that a harmonious har-monious outcome is practically assured. as-sured. A concreto plan is in course of preparation and will be announced as soon as it has been approved bv all of the interests that have been in conference, probably early next week. Mr. Charlbourne said that if a receivership re-ceivership for the Western Pacific was decided upon it would lie of a character friendly to the various interests involved. |