New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-07

RAILROAD DIFFICULTIEs.


A WESTERN RAILROAD IN DEFAULT-MoNTcLAIR AND
GREENWOOD LAKE AND KANSAS PACIFIC REoR-
GANIzATIoN.
A circular has been issued by President
Cutting giving notice to the holders Of coupons on the
second mortgage preferred bonds of the St. LOUIS Atou
ana Terre Haue Railway Company due August 1, tnat
owing 10 the refusal of the Indianapolis and st. LOUIS
Railroad Company 1.-THE lessee OF the main Incl 10 pay
the rental due it is unable to meet these coupons
promptIy"t The mortgage bonds in default amount to
81 100000 the principal OF which due July 1. 1894
The coupons in default amount to S40 COO. President
Cutting claims that the total Indebtedness Of the Indian
apOs and St. Louis Railroad Company amounts 10 over
SI5OOOO, up OF two protested notes Tor S5IoVO
each for the rental Of April May and the use Of the
road for July for which the customary notes.
amounting TO over SO 900, been refused Suits
will be brought by the ST. Louis Alton and Terre Haute
Company agans the essees and their guarantos assoon
as the having jurisdiction shall be opened for such
business aud Mr. Cutting the rights OF his company
are well defined and will be sustained He expresses
the hope that the August coupons now IN default VIII DC
paid in a short time.
The lease Of the main line OF the Terre Haute 10 the
Indianapolis and st. Louis Road was for nnety-Dine
years from June 1867 at annual rental OF 80 per
of the gross earnings of the leased line up TO OOO
600; upon all earnings IN of $2,O0OOO0 and not
exceeding SO 900 900, % per cent? and upon all earn
ings in excess of So OOO0O 20 per cent with pro-
in any one year The guaTantOrs are the Pittsburg,
Fort Wayne and Chicago, the Cleveland, Columbus,
Cincinnati and Indianapolis and the Cleveland, Paines
Vile and Ashabua railroad companies, forming in part
the Pennsylvania Company The indianapolis and st.
Louis Railway Company in June declined to make any
further payments under the ase unless the rental was
reduced to 5000 O0O of the withdrawal OF the
indianapolis, Cincinnati and Lafayette Railroad Com
pany, one OF the original guarantors.
IL is announced that majority OF the ntst
mortgage bOndhOlders OF the MOntcair aud Green
wood Lake Railroad Company have deposited their
bonds with NJ X. Jesup Co. ACCOMPANIED by the pre-
scTibed per cent TO che expenses OF reOrgaza
ton of the road Ths step, 1t is stated has been taken
protect the interests OF the 0OndhOders IN case OF
failure of the conference committee or the two classes
Of mortgage bonds to agree. The committee prepared
q report last which subsequently objected 10
by its members and at present no settled basis
OF settlement has been decided upon The road Is ad-
vertsed be sold under foreclosure proceedings on Au
gust IL.
1t stated by i. H. Meyer, chairman Of the com
mitTee Of nine Kansas Pacific first mortgage bond
holders, that 100000 ia Delaware extension bonds
had been received from London, 20 be deposited
with the United States Trust Company in carrying out
plan purchasing the road un Ter the pending fore
closure proceedings Mr. Meyer also stated That the
committee had received advices from London that the
holders of $2500000 of the bonds had asseted TO
the proposed scheme OF reconstrueton-whch Win the
100000 already deposited, constituted more than
majority OF the entire issue.