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representing the trust company's investment, were pledged to secure liabilities, he said. Officers of the trust company have said that, if they could sell the railroad, the trust company would be in good shape, but Quick's report showed that, as the bonds are pledged, the proceeds of their sale would go to paying the obligations for which they are security. Many liabilities were found, Quick said, which do not appear on the trust company's books. Included in some of the items to which the attention of the Court is called are the following: There is still owning for railroad material and equipment $163,552, which was not carried upon the books of the company as a liability. Bonds of the railroad to the amount of $3,949,000 were carried at par value as an asset. Unsecured notes of the railroad now in a receiver's hands were carried as asset to the amount of $348,964. Notes of the Cross S. Farming company secured by a second deed of trust to unimproved Texas land were carried to the amount of $190,551.27. Having preference over these is a first deed of trust of $720,000. Notes of the Big Wells Township company were carried to the amount of $87,162. These were secured by trust deeds on lots. The town has a population of 600. Notes of a "syndicate" were carried to the amount of $216,553, the collateral being doubtful paper taken out of the State National Bank of Little Rock, Ark., in an effort to prevent the failure of the bank. Notes of W. L. and Lucy Z. Musick were carried to the extent of $83,440 secured by second deeds of trust in the Musick division, St. Louis County. Notes of H. C. Morrow were carried to the extent of $50,000 and as collateral was given shares in the Banker's Trust Co. Among the assets was carried $39,669 due from the liquidating committee of the Bank of Monroe, La., now in the process of liquidation. Stocks held by the company were valued at $710,075.10 and the receiver puts their value at $512,175. Among the stocks listed is $62,499 of a bank now in the hands of a receiver. In telling of the impossibility of arriving at an estimate of assets the receiver states that numerous claims "aggregating several hundred thousand dollars," have been filed upon alleged letters of guarantees upon notes. These claims, he states, were not shown upon the books of the company as a liability. The court is informed that the Bankers Trust Co. entered into an agreement June 30, 1914, with the First National Bank of Granite City by which bonds in the railroad company to the face value of $160,000 were given to the bank to secure notes due or about to become due amounting to about $55,000 and that an agreement was made that if the notes were not taken up in 40 days that security satisfactory to the bank would be provided. Obligations incurred by the Franklin Developing Co., engaged in constructing the railroad and amounting to $139,152 were assumed by the trust company. The receiver states that he does not include this transaction in his report, as certain lands to be transferred by the contracting company to the trust company have not yet been transferred. The receiver also reports that bonds of the railroad to the par value of $230,000 have been pledged with various banks as security for notes to the value of $116,790 and that these notes were not included upon the books of the company as bills payable.