CHAPTER VI
THE RECEIVERSHIP OF THE
KANSAS CITY
SOUTHERN
The Port Arthur fight crippled the
road and gave us a floating debt of five hundred thousand dollars, but in
Holland we had a friend who represented us, on eof the most unselfish men
I ever met. His whole aim in life was to watch the stockholders'
interests. He bought nearly all of this floating debt.
We needed thousands of new cars, but had not
the credit to buy them The grain was moving south in train-load
lots. I had closed a contract with a large Chicago house for two
ship loads of sisal per month, and this we used to load the grain cars
north. The business of the mills and the grain business was so large
that we were threatened with suits because we could not get cars to move
it.
Never had a new road jumped into greater
business. The need of new cars was very urgent, and I talked it over
with George M. Pullman, one of God's noblemen and one of the best friends
of my life. We telegraphed each other every day. He had been a
friend of my grandfather, who started him in business. He said,
"Well, Arthur, you must have more cars. Next week Mr. Calif, my
auditor, and I will go over the road with you." They did, and
Mr. Pullman at once saw its great business advantages. He would not
talk of any plan, but requested me to have all the directors of our road
at the Lawyers' Club, New York City, two weeks later. We met, as
requested, and after lunch Mr. Pullman spoke very feelingly of my
grandfather's friendship for him. He recounted my grandfather's work
in New York state, told about his starting Mr. Pullman in business, and
said: "My friendship for your president, my desire to help the
grandson of my good friend, leads me to do something that I know would not
be called a good business arrangement. I have just been over your
road with my auditor, Mr. Calif. I see its great business
advantages. I recognize its need of additional equipment. I
understand the burden the Port Arthur fight has been, and out of gratitude
for the start Hamlin Stilwell gave me, and out of friendship for his
grandson, I will furnish the company two million dollars for equipment --
notes with no cash payment, and only interest the first five years.
The Pullman Company can build part of these, the rest Mr. Stilwell can
order elsewhere."
Well, such help I had never hoped for.
It was the deliverance of my great road. Tears of gratitude came to
my eyes and all the directors, I think, felt as I did. What a relief
from a great burden. The fight of Kountz was forgotten in the
presence of such great kindness.
I at once gave the orders for the cars and
locomotives needed, and a few weeks later Mr. Pullman telegraphed me to come to
Chicago and he would assume the contract. I trolled up the contracts and
started for Chicago. Al that night I could scarcely sleep, thinking of the
kindness of this great man. I was up early with my precious roll of
contracts. I stood at the door of the car so I could be the first one
out. And then I heard the newsboys calling out, "Extra!
Extra! Full account of the death of George M. Pullman!" Words
here are useless. I cannot picture my feelings. I loved him as if he
had been my father. My contracts slipped to the ground. I reeled,
but in some way managed to reach Mr. Weeks' office, and that is all I remember
of that awful day. My great benefactor was gone; America had lost
one of its greatest men. In my hands were contracts for millions, and I
had not the scratch of a pen.
In a few days I reached Philadelphia and called
around me our directors and leading stockholders. We agreed that the only
way to get the two million dollars needed was to get the bondholders to turn
back twenty-five percent of their bonds and take fifty per cent of preferred
stock. This would give us the needed money from the bond sales, and put
the company in good financial shape. All at the meeting agreed to this,
and Mr. Welch, Mr. Stotesbury and one or tow other stockholders with Mr.
deGeoijen and myself were appointed to act as a reorganization committee with no
fees. As Mr. deGeoijen had placed all the bonds that were held in Europe,
we were positive this could soon be done without a receiver. All the
stockholders present were more than pleased with the plan for the refinancing of
the road, and we felt sure that when Mr. deGeoijen arrived, the new securities
could be issued within a few weeks, and everything brought to a successful
conclusion.
|
|