Evening Republican, Volume 17, Number 132, Rensselaer, Jasper County, 3 June 1913 — C. & E. I. Road Now In Hands of a Receiver. [ARTICLE]

C. & E. I. Road Now In Hands of a Receiver.

Tuesday Wm. J. Jackson, of Chicago, vice-president and general manager of the C. & E. I. and E. M. Winters, of New York, were appointed receivers of the C. & E. I. railroad. The former to represent the operating department and the latter the financial department.

A stringent money market and a heavy increase in the cost of operation are alleged in the bill of complaint as contributing causes of the financial difficulties of the road. In addition to other debts enumerated in the bill, short time notes to the amount of $5,000,000 are due within a short period* The present tight condition of the money market, .it was said, made it impossible for the road to borrow and pay off the debts. The road has outstanding accounts payable to the amount of $2,600,000. The road has been put to high expense recently, too, on account of the floods along its lines and the coal mine strike.

The Chicago and Eastern Illinois is the most valuable part of the Frisco system. This property was bought in 1905. The common stockholders were given for each SIOO share $250 in Frisco certificates, issued, however, against the purchased stock. On this stock the company has been paying at the rate of 10 per cent. The common shares taken over amounted to $7,217,800. The C. & E. I. had outstanding at the time of the purchase of control $8,569,400 preferred stock, paying 6 per cent. The Frisco issued its certificates against this stock for par. The dividends on two classes of certificates are expected to be discontinued, and according to the terms of their Issuance the original stock will in the event of default revert to the certificate holders.