The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-04-17
The Leased Lines of the Wabash.

AS ~ AO
ST. LOUIS, April 16.-Judge Brewer, of the
United States Circuit Court, delivered an oral
opinion, this morning, on the application by the
receivers of the Wabash railway for an order of
court allowing them to cease operating certain
leased lines of the system after May l next, un-
less these lines earned all expenses incurred in
operating them. Judge Brewer said: "All
leased lines whose incomes are over and above
their operating expenses are to pay rent or inter
est on the mortgage assumed by the Wabash
road, such rent or interest to be paid out of the
net earnings. In the case of the Toledo, Peoria
s. Western road, the income which should have
rent, but which had been devoted to
other purposes, the receivers are directed
to at once pay the rent due the
Toledo, Peoria & Western out Of any funds in
their hands, and if they have not sufficient funds
they are to issue receivers certificates to secure
the required amount. In cases where the net in
come from any leased line is not sufficient to pay
rent, only such net income should be paid the
leased line for rent. In cases where the in
come is Just enough to pay the operating ex-
penses the receivers are to pay the rent, but to
continue operating the road. In cases where the
net income is not sufficient to pay operating ex-
penses the receivers are to pay no rent, and are
to cut down the operating expenses with an un-
oP0iAh6 Vub ahSS q AolOs LII ObuCI
words. where, upon such lines. two
trains are run daily, the receivers are
to reduce them to one train, and if that
does not bring the expenses within the
income, they are to run only one train in two
days. But in all cases the receivers are to use
their discrimination in conforming to the public
wants, while they bear in mind the necessities
of the receivership. In no case will they dis
continue these operations Of any road. They
were appointed to preserve and keep the entire
Wabash SyStpm. In case there iS any debit in
Cured in running these leased lines, that is, if
the revenue derived from the main line is not
sufficient to pay the operating expenses of the
branch lines, the receivers mustissue certificates
to make up the deficiency. This can be easily
done, as the receivers were authorized to issue
s., $500, 900 of such certificates, and only $780,
900 of them have so far been issued.
The court then directed an order to issue at
the instance of the Cairo division, restoring this
snd : ,akio or i. 0F"n ont t of it's tse %asssS
system, pending the foreclosure proceedings
which have been brought by the first mortgage
bondholders of the road in Illinois. The court over
ruled the application of the Central Trust Compa-
ny for the appointment of Scion Humphreys and
Chas. E.. Tut as receivers. under the bill filed by
them for a foreclosure. In this connection the
court hold that the present receivers were not
the receivers of any particular party, but were
the arms OF the court to hold the property of the
Wabash system in the possession of the court
for the benefit of all creditors alike.
. The court also denied the motion of the first
mortgage bondholders of the North Missouri
road to modify the order of the court, which
makes the receivers certificates a irst lien on all
the property of the road, including the security
of the North Missouri first mortgage bondhold-
ers.
The courtroom was crowded with prominent
railroad attorneys from all over the country
while the order was being delivered. The argu-
ments had consumed two da-~,