The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-10-07
President Ingalls's Report.

M. E. ingalls,. president or the o., l., st. Ia. o.
c., has published, in pamphlet form, his annual
report to the stockholders, the more important
points Of which are given below. President In
gals shows that the gross income of the COM
pany for the year ending June 80 1886, was
ST. 526, 934 Ga; operating expense, ST, 48O, AL AZ
net 81, 046, 44317; taxes, $59, 80; net, less
taxes, 1886, 872 IS. After paying fixed charges,
balance for stockholders was 1882, 540.29 Dur
ing the year 3 per cent. was paid in dividends,
leaving in the treasury to profit and loss, $l4 2.
54029. President ingalls, says: The policy of
improving and enlargng the plant has been con-
tinued. Sixty-seven pound steel rail has been
laid in the main track and the fifty six pound
steel taken up and used for side tracks and on
the branches Iron bridges have been built TO
take the place of wooden ones; heavy masonry
whore the old was giving away too light:
ballast has been distributed in needed places;
new equipment has been bought to replace old
and worn out; ,847 feet of side track has been
built and charged to operating expenses The
directors, taking advantage of the present low
price of iron and labor have closed contracts for
the renewal of the remaining wooden bridges on
The main line with iron during the coming year.
During the year, the directors thought it a good
time to commence refunding the debt of the COM
pany in a iongtim bond bearing low rate of
interest Upon the lines owned and controlled
by the company there were of every kind and
name, nine million dollars of bonds all bearing
Z per cent, except 81, 900. which were per
cent. They were secured by seven different
mortgages, none of which covered all of the
lines, and were due at different times. This
made them an undesirable bond for investors to
hold. In addition to these nine millions there
were liabilities of branch lines, for which this
company was virtually an indorser outstanding
for about $500 000 A new mortgage covering
all the lines and property of the company was
prepared, securing ten million dollars of bonds ut
per cent. due in fifty years, interest and prin-
clpal payable in gold. AS this is long bond pay
able in gold, and of unquestioned security, it is
desirable investment for estates and trusts.
Provision was made that one million could be
sold and the proceeds used by the company for
new equipment, payment of the $500, 900 hereto
fore referred to. and for payment of the old
bonds as the directors might determine and that
the remaining uue millions should only be sold
or exchanged upon the payment and surrender
of an equal amount of the old bonds One mill
ion of these were sold in June last at par, to be
delivered in Aug asst, and the operation of ex-
changing the old bonds for the new tours is now
being carried or. The outstanding bonds, as
previously stated, are due at different times 1t
Is believed, however, that they can all be ex-
changed for the new bonds at a fair premium.
When this is accomplished the interest charges
of the company will be but $500, 900 per year, a
saving of 1924, 600, or per cent. on the present
stock. Mr. ingalls, states: "a contract has Just
been concluded with the Illinois Central railroad
1or an entrance into chicago and terminals there
for one hundred years. By this contract the
company obtains the right to manage its own
affairs in Chicago. naming its own rates
and conducting its own business, and
paying therefor percentage of the
gross income of the business to and from
Chicago over its line; the contract being espec-
tally favorable from the fact that if business is
dull the payments will be light. and if good, the
company can afford to meet them. The rate re-
ceived per passenger per mile was 229 100 against
22l6O per cent. last year, increase of 1900
per cent The through passenger trains earned
an average of 81. 81 per mile run; Communication,
60 cents; branch trains. al cents; and freight
So o."
The report of j. W. Sherwood. superintendent,
shows that there was laid 10 miles and g 261 feet
of new 67pound steel rail on the main line and
used the steel taken up on the branches. Trains
during the year were run with great regularity
and remarkable freedom from accident
The company owns seventy seven 6rstclass
locomotives, all of which are in excellent condi-
ton. There are eighty-egh cars in the passen-
ger equipments, fftythree of which are first
class coaches in every respect The freight
equipment during the year was increased to g.
053 cars The report of the master mechanic
shows that $75, 496 SO was expended on loco
motives 1874, 3l6 SO un passenger equipment, and
$0l, 294. 46 on freight equipment