, 1874-06-16
RAILROAD NEWS.
Affairs Of tho Toledo, Peoria &
Warsaw Road.
Arguments On tho Motion to Fore"
close the First Mortgage
Pacific Freiahts to 30 Sent over the
Iowa Roads.
The Town Icailroad Law

rorEno. PEORIA q WARSAW.
ronort of tho Trustees, 6ccor aud Tracy,
raH flied Yesterday III their suit against tho
To1odo. Peoria l. Warsaw Railway Company to
forooloso trust-dood for 9G,200,0oo. Tho foro-
c1os,1ro suit vas begun about six works ngo AM
the lattcr part Of May motion for Ii heceiSef
,vas mado before Judge Drnmmond, b,lt con-
tinucd uutil yesterday, when 1t was e1poetoa IT
wou1d be argnod, rrnoy and secor ecinG cot-
tinuctl in Office ns Trustees, under tho direction
Of tho Court. Owingto
JUDGE pnun1MoNps ABSENCE,
however, tho motion has necessarily noon posi-"
nnned until his roturn. Tic report illeu etates
tat iu January Inst thoy learned thatthe intoros1
On large omSer oi nopd ated Say 81 1a
was duo aud unpaid, aud they woso reqnostea. IT,. 60
forcoloso In accordance with tho powers oi tEe
trrst-docd. Consultations wore han WIN ssse
officers Of the In9'e ta ceahy ooa'Tar Na 81 e later later
Company taking charge Of the defentants roaa
as agonk Of tho plaintiffs, accor and Tracy, H!A
M n1rap gemont was maIo III JAnnary ny WHICH
TlIE ILLINOIS CEN rnA1. nAihToAp -,
warn tn operato tho ronG from that time until
July i, 1875, eudcavor to promote its b''alneRs
md interests, koep tic road 10 good fetsa's' ana
render monthly accounts to tho 1rt!atoes' Inc
Illinois Central wns also 70 fopa sno " I~'e an1x
to to- 10 rnia for tho whola work their
actual expc,,tlitures, with the exception OF
eume minor arsangeu'ents. Tue division o1
ratea then existing was ,so 10 a,d cup a'I r"M
backa on Eastward freight TO bo accounted M for'
Tho pooling arrangement between tue Iolouo'
Peoria i Warsaw Company, and tue ChlcaEo.
burlington 2sin9g nareon uGpa aEos uop
pauy was to purchase tho mat1'red coupons Of
fno bonds soci,rea BY tho mortgage on TIE East
ern Division, and hold them until tho Trnateos
could rcneom the'n. Tho pfoIlsa we're ~ ~
thp YoIcAo. Peoria !; Warsaw Railroad Company
g]lou]d hnye pad all The interest on the bonds Of
tic consolidated mortgage. aud Mi doots 70 1no
Illinois Central Railroad Company tnah tne ,1s, H.
ier Company was to return tho property Of tao
ro}ct3o, Poorin l. Warsaw Company to tta Trua-
THE rnusTEEs TOOK POSSESSION
Under rooleHt from tho boliholders 70 !o1o-
clogo. aud turned tho road over to tho 1llinola
Coutrnl nalroad Company, which l'aB since
onornto ol IT, puid debts for labor, etc. aud turned
over $4,000, which has boen npphca OH tho IN
tcrest duo r.7,...,
February. onn ona'o ~
March IL 59e'no no
April. sa's5''g7 70, ~
TOTAL. .s5so'9.4'4o
The expenditures were: ....-
Fch,uory. 7o,7s9.s SO
NlAICl. 1nnnn ~
April ~ 10. m
Amount paid Tor labor. 65a7a'lS
Total,
Leaving a balance of s11, ,875.01. From June =
10 June 10, tho receipts wore a65. l26.9l. ihcina,
iux however the balance carried tor"afd' ana
tho expenditures set 4 49, icayng @ nos n n1ons ~
for the whole five months aud half ol f1o
Tbis seems q rather smnli profit. hut Il large
amount was paid for labor On old accounts DC
toro Jan. !, 1874.
TIE ANSWER.
Tho Toledo Peoria 4 Walaaw Railroad Cona.
pauy also filed M answer admitting ~ tne aet'
ALLEGED against them, and asking TINT tho cour
decide as to tho iaslcs involved. Thc COMPANY
MISC filed au answer to the petition III nankrnp.
cy filed against it about ten -, days aGo' 4 ~ ~
1nits the indebtedness Of S49l.bo TO =. Max"es
1n;ftine lie payulent of about 81 500 to tage !
epraguo, denies tAat this waH dono Will On.
fraudulent intent. It denies also thnt II trans
fcrred my sueh property to secor y Tracy a
charged, without consideration ana 9 a'4 VIII mteh m
to dofraud, and claiuls it paid al! lta denth up T.
about Fab i, 1874 The preceetslngs to foreclos
aro thcn mentioned aR existing III tho United S:nte
Circuit Court, md tho steps which nave nee
taken Hereunder. The Company tnon hl'ege
TINT the Circuit Court haa full Jurisdiction ove
creditors ia specifically mentioned IN schoan! !
Of the Conspany's debta filed with its answer
tho foreclosure suit, aud that that s'1
is still pending and undetermined
said Court. Under these circumstance
the Company. claims tho Dasas,gt ~ n
proceedings must bo diHniiBsetl. This ralscs
question which is novo, and OF great impnrtanc
SIN it is doubtful whether tho jurisdiction
the bankruptcy court will be ollsteu undef 5, 81
circumstances. Tho Trustees arc actlns 40 II
cciyers ouly, under tie consoliaateu moftGa6