Into Hands Of Receiver

Three Big Chicago Concerns Didn't Pay Interest on Notes. 

Chicago, April 23. — Upon default of interest on five notes, aggregating $1,154,183, the Chicago Union Traction company, the North Chicago Street Railroad company and the West Chicago Street Railroad company Wednesday passed into the hands of receivers. Suits for the collection of the interest were filed in the United States circuit court of appeals by the Guarantee Trust Company of New York and the traction companies, admitting the default, Judge Grosscup at once entered judgment. Demands were then made upon the treasurers of the respective companies, and upon their return unsatisfied, three receivers were appointed, as follows: In behalf of the trust company, R. R. Govin of New York; for the traction companies, James H. Eckels of Chicago, and as special advisor of the court, Marshall E. Sampsell, clerk of the court. The application for a receivership set forth the facts that notes for $565,052 against the North Chicago company, for $270,440 against the West Chicago, and for $318,690 against the Union Traction companies were due and, with interest, were unpaid. The insolvency of the three companies was alleged, that the rolling stock of the corporations was heavily mortgaged and that stocks and other assets of the company could not be reached by a judgment creditor. Attorney W. W. Gurley, for the traction companies, filed a plea, in each case admitting that the claims of the complainant were proper and offered no objection to the appointment of the receivers. The bond in each case was fixed at $75,000.