The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-02-24
AFFAIRS OF THE RAILWAYS.

The Consolidation scheme Abandoned.
The Ohio, indiana & Western Railroad Com
pany is struggling to get out of the financial
mire. and the executive committee has recon-
mended that the new company be authorized to
raise the required amount by an additional issue
of bonds, not exceeding $500 coo, payable at such
time, bearing such rate of interest, not exceed
ing per cent. and having such priority OF lien
as will secure their prompt negotiation at par
Chairman Campbell says: 1.-THE new company.
on entering upon the possession of the property,
fnda hself without any means of complying
with those provisions of the reorganization
hgrssnient which provide for the payment OF
the accrued interest, uD to the date
OF the new securities, in cash. The entire net
earnings were appropriated by the receiver to
the betterment and improv ement OF the prop
erty. Subject to the appro val of security hold
ers, the committee recommend that the new
company be authorized TO fund the accrued in
terest into an issue of negotiable certificates to
accompany the bonds, bearing interest at the
rate of per cent. payable serni-annually.
deenlable by lot from time to time as the earn
ings will warrant, and payable at or before the
maturity OF the bonds severaliy, to which it
pertains, and secured. principal and interest, by
the same mortgages by which The bonds are Sc
cured Under this modification the relative
status of all classes of security holders will be
preserved"
The parties controlling the Gle velaud, San
6usky e Columbus road and those controlling
the Ohio. Indiana & Western are still in confer
ence in Springfield, o., and at last accounts but
little progress had been made toward removing
the obstacles to carrying out the consolidation
scheme. In fact il is said that all hopes Of con-
solidating the two roads at an end. An
effort is now being made to fix up some plan by
which the two roads can be operated together,
the o., /. & w. paying on the wheelage basis
FOR running over the c.. s. & G. The statement
to the effect that the o., /. & w. had secured
control, or nearly SO, of the stock of the c.. S.
81 G. is denied officially. They simply hold
enough of the stock to prevent
the c., s. % G. leasing the road
to any other line. The fixed charges
but $3.50 900 per annum. Here is where the
principal hitch is. The c., S. 81 c. has a very
light bonded debt, while the o., l. & w. has
heavy one, and the G., S. g. e. people insist
that the o., /. e. W., before the consolidation is
perfected, shall more nearly equalize the debts
of the Two roads. Unfortunately for the o.. l.
d W., the c., S. & c. holds a valid claim
against the former for $780, 900; the o., /. & W.,
however, claims TO have made improvements to
the G., S. 81 q. during the existence of the lease.
which was broken, which will Offset this debt to
the extent of $780, 00O but how raise the
other $3.50, 900 is the problem with the o., I. g
w. Taking the most favorable view of the sit
uation between the two companies. the snarls
TO unravel are so numerous and the views of the
powers that be at variance that settlement
which will end in consolidation is very i'm
probable One os the officials says it looks to
him as being impossible.