The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-03-30
A Badly-wrecked Railroad Property.

Probably there is not railroad property In
this country which, financially and physically.
is so much of wreck as is the Illinois Midland
road, and the question is not who will buy the
read in at the coming foreclosure sale, but who
wants the property in its present condition at
any fgure9 The Illinois Midland operates 173
miles of road, twenty eight of which are leased
road The three roads now known as
the Illinois Midland proper were consolidated
Nov. 4, 1874 and consisted of the
Peoria, Atlanta & Decatur, the Paris &
Decatur, and the Paris 6 Terre Haute.
Ten months after the consolidation. Sep. II,
1875, the 148 miles which were consolidated were
thrown into the hands Of a receiver, and there
it has been for nine years and seven months.
Prospects now are that one week from to- day
Justice Harlan will fix upon the day to sell the
road, and there seems to be but one party which
the road can be of any real value to, that is the
Waring Brothers Without mentioning the
bonded debt there is floating debt and other
claims for supplies, and court expenses, which
| amount to over 81, 500 000 A short time since
Colonel Andrews, formerly chief engineer
of the Wabash, and FL. Jackson,
Canadian engineer appraised the property
at 81, 23S, 600, the valuation of the entire line
| being 81, 5S1.5I per mile. The same parties
appraised the equipments at $242, GOO. The
| trouble, however, is that Of the 148 miles of
| Illinois Midland the Waring Brothers own
| in fee simple twelve and half miles
of the fourteen miles lying. between
| the Vandalia and the indianapolis & st.
Louis roads. Then l.. GEMS, ex-re-
| ceiver, holds in fee simple, representative
| of the Waring Brothers, twenty eight miles of
| the road lying in Tazewell county, H., and
| seven and a half miles lying between Havre
| City and Decatur. which divides the Illinois
| Midland road practically into seven pieces of
| track. Then Warning Brothers own in fee simple
| the ground at Decatur upon which the shops,
round house and depot stand; further they own
of the equipments, appraised at $242, 900, all but
| $42O of the property. Now the Warlng Broth
ask the courts to order that the road be sold
| an entirety, and that from the proceeds they
| shall first be paid for the property they own in
fee simple, such sums of money as they have
| advanced and interest thereon, and then
whatever sum of money is left of proceeds
| from the sale after payment of their
claims they are willing should be divided
| pro rata among the creditors. Whether this is
to be allowed will be settled on April by Justice
| Harlan. 1t is plain to be seen that the Waring
| Brothers, as the saying is, are on top, that the
| portions, of the road they own in fee simple rem
| der the remaining portion of the road of but
little value except TO them. Should the court
| order the road sold as an entirety, making the
claims of the Waring Brothers the first preferred
| claims, there is room for other parties to come
In as bidders, providing they pay the amount of
| their claims If the court rules against paying
their claims first from the proceeds of sales, the
Waring Brothers will probably buy in the por-
| ton of the road which they do not own
in fee simple at their figures, and the
creditors of the road whether they hold receiv
ers certificates any other class of claims, will
realize but very small per cent. of the amounts
OF such claims. study of the affairs of the
| company shows that all through the ten years
one man, L. GEMS, has had soft snap as the
| saying is as Judge Allen has allowed him SO, 900
for services receiver, &c. 900 for moneys he has
advanced on debts he has personally guaranteed
| the payment Of and $l2, 900 additional for his
| salary and expenses during the time he acted as
| receiver after rendering his resignation Then,
above all this the Waring Brothers have been
paying him $l5, 600 year to look after their in
terests in the property.
A Line Agent Brought UP with Short Turn.
| For some weeks past rate matters had been
moving along very smoothly at Terre Haute,
and it is said had been better maintained than
| for many months preceding Last week one
Stanbery, agent of the Traders Dispatch in this
section spent day or two in Terre Haute and
it is alleged proposed to take some property out
of there for the seaboard at cut rate. The
Vandalia people, over whose line the Traders
Dispatch operates, were appraised of the
| alleged break in rates. and brought
the line agent up with short
| turn, shutting the line out of Terre
Haute for business, and instructing the con-
ductors not to honor the agents pass hereafter
! In fact, it is stated he was obliged to pay his
| fare to Indianapolis. Were such prompt and
| positive action taken more frequently by roads.
rates would doubtless be better maintained.
While line agents may, as they always claim
| that they do, act under instructions from supe-
rior officers when they cut rates if roads will step
on such business after the fashion of the Van
dalia, good results would unquestionably follow.