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Show TWO IMS III HANDS OFRECEIVER 8T. LOUIS A 8AN FRANCISCO ANO CHICAGO & EA8TERN ILLINOIS IN FINANCIAL STRAITS. Combination of Troubles, Inoludlng Inability to Meet Maturing Obligations, Obliga-tions, Cause of Action Against th Two Systems. Chicago Financial difficulties which on Tuesday plunged the St. Ixr.ila & Sun Francisco and the Chicago & Eastern Illinois ml Toad Into recti! v ershlps, will result In the dismember ineiit of that Joint system, whose 7, 500 miles of track cover tlf south west. The Chicago A Eastern lilt nols, which has formed a part of tlx Frisco lines since l!)o2. will be re stored to Its former position as an in dependent property. The primary cause of the financial troubles was a combination of nilsfor tunes, Including rising costs of opera tlon, flood losses and stringency of the money market, which made It Im possible to raise funds to meet in a turlng obligations That these troubles overwhelmed the Frisco wai owing to the exacting guaranteei made by the parent company durlnf recent years In acquiring control ol other railroads, whereby it Increased Its mileage from 1,100 miles In 1896 to 7.4H9 In 1912. The earnings ol some of the lines since acquisition have fallen several million dollari short of meeting obligations which the St. Louis & Ban Francisco as sunied. |