The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-06-22
RAILROAD TROUBLES.

STATEMENT By A DIRECTOR OF THE 81. LoUIs,
STOCKHOLDERS.
The following statement, explaining tho difficulties
winch exist between the 81. Louis, Alton ana Terre
Haute Railroad and the lessee OF that road, has been
transmitted 10 each OF tho stockholders by or the
directors, who examined into the contract alter the
death OF Robert Bayard, The pres,dcDt:--
NEw YoaK, June 10. 1878.
The facts OF the 81. Lou,s, Allon and Terre hauto
Railroad case, ms known TO u.s. are ~ followsln Sep
temovr 1867, tho NAN iinc and Anon branch wero
leased for ninety years 10 tho Indianapolis
ST. Louis Railroad Company tor thirty per cent OF
gross receipts up 81 600 900 with fixed minnu n,
many event, OIL $500 900 annun. he stock OF
Indiana pois and ST. LOUIS Raroad IS owned one-nsif
by the P.ilsourg, Fort Wayne anu Chicago Railroad
aud one haf ~ the Cleveland, Columbus, Cincinnati
and Indianapolis Railroad Toe lease TO the cxssnt
OF the minimum rental OF $500 per anpuni,
guaranteed srvsray but not jointly, by the Indian.
apos, Cincinnati ana Lafayette Railroad, parties Of
the 1rst part; The PlsOurg Fort Way and Chicago
Railroad, parties tho second psrl; anu mo Cicvo
land Col muus, Cincinnati anu Indianapolis Ranroad
Company AZ parties oil tho third part
hey moreover guaranteed US soveraIly, hut not
jointly, against deiaait the part Of snher Of
The three guarsnors lhe par,ic. OF the first part,
tuo apoils, Cincinnati, aud Lalay elite Ra,road
withdrsw RON tue arrangement In 1867 1865, aud
have never pad anything 10 the guaranteed fund.
The other two parties TO tho guarantee always
10 date paia The dchcency between earnings and
Tue sscoaa ANA nra parts me. in New York and re.
Qucstcd conf lorenzo with They aud there
canned That they wero Gully responsible Tor their
separate guarantee o $780, O01 cacn. and requested
modification Of the lease 10 conform to "a lnimum
guarantee Of $4,000 instead oil 500 600 On behalf
OF the ~. LOUIS Alton ana ferrc Haute Rail-
road stated tnat iels bound 10
exhaust our rights as against the Indian Apos and
ST. Louis Railroad. IL they failed to pay as thirty
per cent OF the gross receipts, with miniiuum Of
$780, 600, then We should look 10 the gunrantors.
p,rtcs Of The second and ihrd parts III or sep.
arile guarantee oil $3.50, 900 each aud also To their
guarantee Tor damages account OF the failure Of
The partes OF The urs part TO Keep up to their pro.
portion OF the guarantee.
Our claim that they are each Labic for an addis
tionai haIf OF xl5O0O0 or at least third Of
that amount. In any svent We claim That mint.
mum guarantee, or winch tho parties u the second
anu third parts are scverslly liable, cannot be less
than 500, 900 as TO each
any Official notice o. tn.r intoItions to futuro
action, Dut trust tnat The nexs rental note viii be paid
as promptly as In tue past
Tue lease OF The 81. Iouis, Alton and Zorro Hautc
Railroad man iine and Alton branch was carefully
drawn up oy Governor iildcn He has repeatedly
stated as We IRE Informed, that cannot be broken.
IL N hardly necessary 10 state that his reputation
RAILROAD lawyer ~ pre-ernInsnt, and NO propose
stand on us opiaiou aud work.
Tue guarantors aro perfectly solvent, and abund-
anuy aOic o. meet their engagoments and We feet
great condolences that they wili lotnng forfots
their reputation Tor honest dealing, to throw
credit uD0n railroad leases Our construction ol the
has oiioxea by them without protest since
1867.