The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-01-13

chasers of the road were ready to pay the pur-
chase money whenever the court demanded IL.
This week the st. LOUIS, Alton q Terre Haute
Company filed an Intervening petition with the
United States Circuit Court, asking that their
claim of 1864, S74.7O, due them for back rent,
small be paid out OF the proceeds rom the sale or
the Indianapolis & st. Louis road, before any
distribution is made to bondholders
The decision OF this question: it il
stated by the attorneys in the case, will delay
the payment of debts contracted before the
rrceivership until Judge Drummond gives his
decision in the matter, which, it is expected,
will be rendered at an early day. This is the
same claim on which Judge Drummoud before
rendered Judgment on against the Pennsylvania
ana the Cleveland, Columbus. Cincinnati Sc In
dlanapotis as guarantor and from which judg-
ment an appeal is now pending i'll the Supreme
Court it seems that tho St. L.. A. T. IL
company are not fully satisfied
with the Judgment against the Pennsylvania
and c., c., G. & /. companies, and therefore
seek to compel the payment of said back rental
out of the proceeds from the sale of the l. & st.
l.. The atJorneysin the case state that, while 1t
was understood that the purchase money would
be paid within ninety days after the sale, IL was
optional with tue court whether to enforce such
payment. They further state that the claims
are worth par, and Will without question be paid
in full as soon as Judge Drummond gives his de-
clsion in the question above cited.
AN IMPORTANT DECISION.
LOUISVILLE, Jan. 12.-In 1856 a project
formed for building the Southern Pacific rail
road across Texas to the Pacific coast. The
first link in the transcontinental chain was
from Shreveport, La, to Marshall, Tex. By the
time this was finished the enterprise broke
down pecuniarily, and the road several
times sold out by sheriff. After the war, in
1856, the enterprise was revived and loan of
Sl0O,O0O was made to the road by Louisville
syndicate. The enterprise failed, and in 1868
the road was sold, and was bought in by the
Louisville syndicate in order to secure
their debt, they assuming TO pay other
prior mortgages and debts to the amount
of about S5O0,U00 They took charge of the road
ana put about SS,OOO000 more into 1t, obtained
the passage of a number of laws by the National,
Congress and Texas Legislat ure in aid of the
road, and at last succeeded in 1877, in selling
the property TO the Texas Pacific Railroad Com
pany for SO, 100000 in and-grant bonds. Gould
and Vanderbilt afterward put about S2S, 100000
more into the road, and it is now completed and
.orins great trunk line from ocean
to ocean. The stockholders in the old
till 1873. and then brought suit in the Louisville
Chanoery Court against the Louisville syndicate
to recover the road, and all the profits the syndi
cate had made upOu it The case has been fought
vigorously ON both sides Ii argued and
submitted last November To-day Chancellor
Edwards returned verdict in favor OF the do.
tendants. The Chancellor holds that there
no fraud on the part of the defendants In pur-
chasing the road in 1868, and that they we're
compelled TO purchase to save their debt.
He also holds that the suit is defective because
the trustees of the old corporation, who properly
represent IT. are not parties to the suit; also,
tnaJ the delay OF the old stockholders from 1868
to 1873, before suing. was such negligence AS to
prevent them from afterward asking aid of the
chancellor to recover back from the defendants
the road which the latter had made valuable
during their delay by the free use of money,
time and energy.
VANDERBILT COME AGAIN.
CHICAGO, Jan. I2.-The Tribune says that Van
derbilt, tired of paying the Illinois Central
heavy rental for the of its tracks into the
city by tho Michigan Central, and desiring also
free entrance for his new acquisition tho Nickel.
plate is contemplating the purchase of the Hi
nOls Central, and, in fact, mas been quietly buy
Ing its stock, evidently expecting to get rid of
the Holland stockholders of that road.