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Show ENORMOUS DEBT IS CANCELLED Judge Sanborn to Pass on New Agreement Between the Frisco and Trustee. St. Louis, Mo., March 20. A debt of more than $3,900,000 which the St. Louis and San Francisco railroad owed Albert T. Perkins, as syndicate trustee, Is cancelled by the terms of an agreement filed with United States Circuit Judge Sanborn today. Two of the subsidiaries of the 'Frisco revert re-vert to the syndicate that promotes them. Judge Sanborn will pass on tho agreement this afternoon. The indebtedness wns In the form of notes, aggregating $2,o73,38t, which had been given by the 'Frisco to Perkins, Per-kins, as syndicate manager of the St. Louis Union Trust company, and certain collateral given to guarantee tho paymout of loans. The notes represent tho sum paid lo Perkins for the New Iberia and Northern railroad, a line l'JO- mlleB long in Louisiana, which tho 'Frisco purchased from the syndicate. Tins road and the Now Iberia. St. Mary and Eastern, now reert to the syndicate. syn-dicate. The separation from the 'Frisco marks a step in the reorganization reorgani-zation which has been under way since the recent Investigation of tho interstate commerce commission into the affairs of the 'Frisco receivership. receiver-ship. The 'Frisco bought the New Iberia a short time before it went into receivership. re-ceivership. Purchase Illegal. Attorneys for tho receivers claimed that the purchase of the New Iberia and Northern was illegal, as the subsidiary sub-sidiary had no physical connection with the parent road. Perkins had filed suit to enforce tho payment of the notes but tho receivers re-ceivers had planned to fight this with denial of the validity of the contract. A petition was filed with Judge Sanborn today, asking him to approve tho cancellation of the debt. This petition stated that on January Janu-ary 1, 1912, tho St. Louis Union Trust company loaned Perkins 250,000 to 'aid iu the construction of the JJloom-Ington JJloom-Ington branch of the St. Louis, Brownsville , Mexico, another 'Frisco subsidiary, and on September 3, 1912, loaned Perkins $250,000 for building a Brownsville branch from Hcystcr, Toxas. to Austwcll, Texas. The trust company claimed that the 'Frisco guaranteed guar-anteed the payment of these loans, and had pledged bonds of the New Orleans, Texas and Mexico as security. securi-ty. After the receivers were appointed, appoint-ed, it was impossible lo lssuo the bonds. The rrisco, by the terms of tho agreement filed today, recovers four blocks of land in Dallas, Texas, worth ?5U0,00U, pledged to the trust company compa-ny to secure a mortgage. The 'Fris co also transfers to the truat company compa-ny all Its claims to tho contracts tor 1 the construction of the two branches of the Brownsville road and waived all claim on the New Ibcria and Northern North-ern railroad and on tho New Iberia, St. Mary and Eastern. Loomis C. Johnnon, attorney for the 'Frisco receivers, said the settlement filed today reduced the indebtedness of tho 'Frisco by moro than ?3,000,OUU and prevented prolonged litigation. oo The Government 6r Ecuador will establish sevon wireless stations and equip three war vessels with wlroloss. |
