The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-01-24
SQUEEZING THE WABASH.
The Central Trust Company Sues for the
Foreclosure of $56, 600, 900 Mortgage.

A suit involving $50 900, 900 worth of property,
principal and interest was fled in the Circuit
Court yesterday, being the the largest amount
ever sued for in Marion County. The suit is
entitled The Central Trust Company Of New
York. and James Cheney vs. the Wabash, St.
Louis and Pacific railway, the St L., l. NJ. & S.;
Eel River railway; L., P. & G.. NJ, C. & l.; c.,
c. & L.; A, G. & S.; T., P. 6 W.; st. L., j. &
S.; c. & s.; H., R. & E.; P. q P. u; c. & w.
l.; Pan Handle; B., c. & B.; st. L., O. & c. R.;
st. ]. & St L.. B. & c.; St l., G. B. & o.; St
L., K. c. & N; O., NJ & p; P. & A. railway
companies also an almost endless
number of bridge and other corporations
and citizens. The plaintiff, Cheney, is a resident
of the State of Indiana, and the allegations of
the complaint as follows On June 1, 1880,
the Wabash issued fifty thousand bonds of 81, 900
EACH the grand total amounting to $50, 000, 900,
securing payment by a mortgage on all their
property. The bonds bear per cent, payable
semi annually, with the understanding that, if
the same is not promptly paid the entire princi-
pal becomes due; and it further provides that if
the interest is overdue six months the mortgaged
property may be advertised for sale, at the dis
erection Of the bondholders, and the proceeds
applied to the payment of the bonds.
On the I'd of June, 1884, the
interest on these bonds became due,
but was defaulted and is still unpaid. 1t is also
stated that large number of the said bonds
were taken to the headquarters of the Wabash
road in New York, and payment of the interest
demanded, which was refused. Following the
making of the mortgage which the suit is
brought the Wabash made its notes. signed by
the President and Endorsed by the secretary of
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for large sum of money, the amount not being
stated, and later, the equitable life, began pro-
ceedings in the United States Circuit Court for
the eastern district of Missouri, in which it was
alleged that the road was at that time and is yet
practically, insolvent, and asking for the
appointment of receivers to protect the interests
of the company In this proceeding the plaintiffs
in the suit filed yesterday appeared in cross
bill setting up their interests and first mortgage
on the roads property, and asking the court to
protect their interests. The jurisdiction of the
United States court being questioned by certain
parties claiming interest, the plaintiffs decided
TO file the complaint in the Circuit conrts, and
it is accordingly filed in all the counties through
which the Wabash road passes The plaintiffs
ask for a foreclosure and judgment, and set forth
at great length description of the property,
consisting of main and leased lines, material,
stock. etc. The complaint is exceedingly volu-
minous and comprises eighty five pages of print
ed matter in pamphlet form.
The attorneys are Butler, Stillman and Hub
bard, of New York, and Phillips and Stewart Of
St Louis The complaint was filed by the
travelling solicitor Of the road. Baker, Hord and
Hendricks will represent the plaintiffs in this
city. The solicitor stated that the pro rata
interest of the plaintiffs in the Waba,h road
property in this State is about $l7, 000, 000 The
plaintiffs consider the main line of the Wabash
as profitable enterprise, but state that the
numerous branch lines have been greater
burden than it could bear. One of the objects
of the suit is to determine the question as to
of some Of the branch lines. After having Sc
cured as much of their money as possible off
these branch roads the plaintiffs will file similar
suits against the main line at points along the
road