OCR Text |
Show MIDGE QUITS ROCK ISLAND AS RECEIVER He Says There Is No Necessity Neces-sity for Two Executive Heads. DENIES ANY FRICTION Federal Court Holds Up Resignation Pending Conference Con-ference With Dickinson. CHICAGO, Sept. 27. H. U. Mudge. one of the receivers for the Chicago, Rock Island & Pacific railroad, resigned late today. Judge Carpenter of the United States district court, to whom the resignation resig-nation was submitted, refused to accept it until he consulted J. M. Dickinson, former secretary of war. the other receiver. re-ceiver. Mr. Mudge emphatically denied that any friction in the receivership proceedings proceed-ings had caused him to resign. "My resignation was entirely voluntary," volun-tary," he said. "I feel that two receivers receiv-ers are not necessary. I am an operating oper-ating railroad man not a lawyer. There has been absolutely no friction between me and the other receiver. There is no necessity for divided responsibility." Owed Equipment Bill. The Chicago, Rock Island & Pacific Railway company was thrown into a receivership re-ceivership April 20, 1915, on application to the federal district court made by prearrangement by the American Steel Foundries of New Jersey upon an unpaid un-paid equipment bill of $1&,81S. J. M. Dickinson, former secretary of war, and H. TJ. Mudge, president of the railroad, were named as receivers. On April 29 the receivers made their first report to Judge Land is in the United States district court, submitting several proposals concerning the payment of interest on ail obligations. Judge Carpenter on June 28 authorized the issuance by the receivers of $2, -500.000 in 5 per cent receiver's certificates certifi-cates to take care of interest due July 1 on ce'rtain underlying bonds. Considerable Consid-erable friction developed at the hearing, in which Attorney Samuel Untermyer made a spirited fight against the ultimate ulti-mate ruling. Prosecutions Were Ordered. On September lfi the receivers were ordered by Judge Carpenter to institute suit for the recovery of $6,000,000 against railway officials at present and formerly connected with the directorate of the Rock Island railway. The order came as a sequence of a recent report of the interstate commerce commission to the effect that the road had been mulcted by manipulators of the Frisco-Rock Island merger and subsequent disintegration. The order further directed that the American Steel Foundries, complainant in the receivership, institute ancillary proceedings in New York courts to grant the appointment of Jacob M. Dickinson and H. U. Mudge as receivers over all properties belonging to the road in New Tork state. The New York court also was to be asked to appoint Dickinson as sole receiver re-ceiver of all claims and ciioses In action ac-tion which may exist 4n favor of the railway rail-way company against its present and former directors. Judge Carpenter's order or-der waB based on an opinion drawn up by former President Taft. |