, 1874-09-01
RAILROAD NEWS,
Trouble with lib Joliet & Northern
Indian IA Road.
Rates for Cross :ng the st. Louis
Bridl 70, Etc.


JOLIET & MORT FERN INDIANA.
From the istr Yorl Tribune, dug. 20.
A strange contest III IS recently been bognn
concerning tito bontn Of tho Joliet Il Nortler1,
1,t,iann llallroad. 4 numbor OF thoao bond.
holders nro residents Of this city, and much In
dIgnation Inns beon oSprt :ssod at tho action pro-
posed by tho Michigan Central 1sailroatl Com
pnny. The hiBsory Of thu, case Ia substantially
aa follows:
Tho Joliet l. Northern Indiana Rallroat WAS
ht,ilt twenty years ago. It's atoek, divided into
5000 shares, was valued al. $500, 900. In build
ing tho road 1t became moo ossary to issue mort
gago bonds to tho amount Of $500, ,0ou.
Tho rato OF interest was 1xed ut pcr cont.
Thoso bonds woro negoti,itcd chiefly on tho
strength Of lease contract with tho Michi-
gan Central Iallronl Ths WIS perpetual
loaHo, and tho Michigan Central was to pay
yenr1y 92,01o milo, or $80,000 for tho loaso Of
tho roal. With this money tito per cont intor-
cat OH tho bo nda and stock wnB tn DO paid. Tho
consequently payable Oil July 10. 1874. As tho
somi-annunl co npona havo fallen duo they have
boon paid out Of tho money obtained for tho
Michigan Cont, al'a leaao. Az tho Inst coupon
became due tue bondllolderH BECAME anxious Tor
tho redemption + their bonds. But tile Joliet
4; Northern lntL ANA Railroad Was, Of course,
unable to rodcom them.
Meantime, \ lut, 70 portion Of tho capital stock
y
crs il, tho Michigan Central. and alil other stock
Ind been bought mp ~ opportunity ollered.
Accordingly 1t halY 'onoa, wien tho bonds be-
catne duo. that OF tho 3.010 shares capital
stock Of tho Joliet Il Northern 1ndiana Railroad,
tral. 4 meeting Of til , Directors Of the Atichl-
gan Central was hold { Aug. 4, to tlcoltlo OH
COURSE Of action with fation to tho Joliet Road.
i was then decided to isane circular to tho
Michigan Central waH vii ling to takc. Iltn rtsl
tion OF tito Joliet Comp any toWard tho huMG-
holders was thtN stated:
"The Company, until atntcd dhte, unesA
tho mortgage is forcclosod~ will bo in thu receipt
OF an annnAl ront from tho Michigan Central
Railroad Company OF $80.Ql D. 1t will owo tie
mortgage bondlloldors debt that haa n,"tired.
Of $500, 600. The mortgage bondholders must
either negotiate with tllo Joho l. Northern In
diana liai'road Company for a ronowal Of the
$500 900 loan, upon tornlH to be t1greod upon, OF
foreclosure must talio paco which will tprnli-
tate tho leaso. and leave tho bondl 'olerA prop
orty probably insufficient to repay the debt for
which it iB morlgagcd.
vt Is clearly, then, for tho interest Of both
tho bondhoItlers aud tho Joliet tS No sthern In
dinnn Railrond Company that the loaso should
nao no. 10 o1tngal.ed W foreclosure. sna that
extension Or renewal Of the mortgage bG1lds.
With regard to tho stock Of the Company, there
no 5000 shares Of capital ntock, OF which tllo
Michigan Central Railroad Company holds 2,233
vato stocklnsdors who tnay, by the tenor Of Tho
certificates, hnvc been leu to suppose that tho
rcRular continuation OF dividends upon tho
Hamo depended solely upon the losAs being car
1cd ont by tho Michigan Contrat 1.ailroatl Cum
panr. in view Of which anch Stockholders arc
entitled to specinl consideration II 1t cat, prop
orly bo accultled to them. To further which
viow, Eaid stockholdera should be allowed to OK
stock baing entitled to Il bond Of $500 1t il
therefore tho clear duty OF tic Joliet Il North
orn lndiana Raiiroac Company, il suoh exten-
Bion or ronowal iH lad, or exchnngo Of stock
1nadc, to appropriate tho outlro rcntal-after re-
sel wing sufficient amount for tho necessary in
cidentai oxponBos first, to tho payment of
the interest Oh the rcnswa bonds, aid tile bonds
issued in exchange for tho 767 shares Of stock,
payment Of those bonds whom they matuzo. It
WIS therefore voted that this Company pro-
poses to tho bondhodo;n to ipsuo now boiltls nt
Sl.0oo eact, numbered from to 500 inclusive,
payable in twonty years from July 10. 1874. when
the old bonds matnred, or uooncr if tho nccumu-.
lattona OF tho sinking fund ahall suIlica with ill.,
torcst at tho rato Of G per cent, payable gomi-
annually. This Company also proposes to tho
holera OF the 7o7 ahnras Of stock, 10 issua for
each flve shares of stock surrendered 6 por |
cont bond Of S5u0 payable az above. conditioned
upon the carrying cut Of tho above proposed cx-
change Of bonds. Tho interest on tho propoaot J
bonds TO- ho secured by tho application Of the |
rent receivable from tho Michigan Contr,l Rail-
road; the baanco Of tho suid rent, detluctlng |
necessary incidental expenses, to constitute a /
sinking fund for tile paynent, flrst Of the bonds
numbered from to son. itcue'ye; and, second,
for tho payment Of tho bonds Of 750D nropoBcd |
to bo exchanged for tho said 757 shares Of Stock
by carrying out tho proposed arrangomeut, |
it will be found that there will he seui-anpual
payment to tho sinking fund OF about $4,000. |
which, il invested 80 to produce 1T tho rate OF
u per cent inteross. compounded every Eix |
months, it III estimated. will yield an amount |
rather moro than sufficient to pay tho prncipnl
OF all tho bonds in twenty years. Tho original |
mortgage will still continue in forco until the |
ti,lat payment Of the proposed pnr cont bonds,
the old bonds being hold uucancelcd by trustees,
in order that tho provisions Of the mortgage may /
DO cnrrtcd out if necessary, thus making tho |
now bonds secured both by tho original |
and tho accti,nuntions OF tho |
sinking fund, and the bonds issued In ex- !
change for ntoclk secured by tho sinking fund. |
Tho ownors Of tho TIT bt,arcB arc now iudig- |
lla't ut tho proposition of the Michigan Cont1al.
They claim thnt tlloy nro entitled to nor cont |
interest, aud aso unwilling to comp oniso. They
pronounce it all outrage that they should be COM
pollcd to accumulate sinking fund for the pay
nlcnt OF tlieir own bonds, aud ut the oud Of |
twenty yoara, find tho roaI tho property OF tho !
Michigan Central. 30 large portion OF tho |
stoch IL owned by tho Michigan Central Ila;l- |
road. however, thut the fow ontude boudhoidscs !
alo well nigh llolpcsa. They arc determined.
however, to maintain their claim TO MI 8 mar
ceHt bond, anu the matter may yet reach tho |
courts.
FREIGHT MATTEEs.
TIE ST. LOUIS BRIDGE. |
An agreement has boon concluded bet,yeon tho |