The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-04-09
AFFAIRS OF THE RAILWAYS.
validity of Bonds Questioned.

The new form which the litigation in the
Chicago s. Atlantic foreclosure suit has
taken is attracting n good dealof attention,
as il is believed that III. j. Jewett and his
friends are behind the opposition for the
purpose of retaliating on the present man
agement of the Erie, which ousted the jew
EFT management. A railroad attorney who
has Kept apace with the litigation, in con-
versation with a Journal reporter last eyen-
ing, stated that the decree in the case of
the Thames Loan and Trust Company VS..
the Chicago & Atlantic Railway Company,
recently entered inthe United States Court,
is for Si4,S 74, 764. 1911, 10000 principal and
s. 314. 764.16 interest. OF the principal,
So, 500, 900 is first-mortgage bonds and 5000
600 second-mOrtgage bonds. George j.
Bippns. trustee, of huntington Ind. rep
mortgage bonds, appeals to the Supreme
Court of the United States. The
points made by Mr.. Bippuss counsel
In resisting the decree OF foreclosure were,
first, the Circuit Court was without juris-
diction; second, the first mortgage was in
valid because the Chicago IL Atlantic Rail-
road Company was never properly organ-
lied, 1T being a consolidated corporation,
organized pursuant to the laws of the
State of Ohio and Indiana. If the railway
company was never properly organized 1T
is plain that the first mortgage would be
invalid. If the first mortgage is Invalid
because the railroad company was incapa-
BILE i'm law of executing it, then it seems
equally plain that the second mortgage is
also invalid, as the company which a
the first. also made the second. The at
torney also states that there is no DISPOSE
ton on the part of those in the reorganiza-
ton scheme to freeze out the 100000 bonds
Mr.. Bippus represents. If his appeal is
sustained the effect Will not only be to in
yaliadate the first mortgage bonds. but the
- a N ~ 4E aA4ODI IN hnn onl nj
timately the 100000 bonds he claims to
represent. Being a cO-trustee with the
Farmers Loan and Trust Company in the
second mortgage he represents the "a ,30O,0OO
of the second mortgage bonds as well as the
100000 of seconds in whose interest be
claims to be directly acting. His appeal Is
prosecuted against the wishes of the hold
ers of the S4,3OO,0O0 second mortgage bonds.
Personal. Local and State Notes.
1t is believed that the Illinois Central
road will to-day become q member OF the
Interstate Association.
John b. Kerr, general counsel of the New
York, Ontario d Western road, has been
appointed. general manager OF 1T, dating
from April l.
General Manager Green, of the c., l.. st.
l.. IL c., was in the city last evening. en-
route to Chicago to attend the meeting of
the Interstate Railway Association.
Commissioner Walker is quoted as saying
that the Interstate Railway Association
will do more to benefit stockholders than
any association yet organized has done.
Most of the Chicago roads are now pay
ing the agents who sell their tickets at the
hotels regular salaries instead of commits
sions, and the new plan works very salts
factorily.i
During the coming summer the Lake
Erie & Western will build neat and cOm-
modious depots at several points on its
lines. One is in process of erection at Ply
mouth, Ind, now.
1t is stated that s.. +. Boyd, general pas
senger and ticket agent of the Minneapolis
q st. Louis road. is to resign on May 1 to
take the same position on the Chicago,
Kansas & Nebraska road.
1t is now stated that the same parties
who carried through the Big Four-Bee-line
deal are reaching into the Northwest for
new alliances. having their eye on the Chi
cag 81 Northwestern road.
feature of which is a return fiue the whole
length of the boiler. is being rebuilt after
the ordinary type of engine at the L., n. A.
& c. shops at New Albany.
The Union Pacific has just placed in
service on its Golden SpeciaP. vestibule
two bridal chambers. They are finished in
white, at great cost, and very elegant.
G.. III. Hill, who for a few months has rep
resented the passenger department of the
Union Pacific in this territory, has resigned,
and Will take a position on the Oregon
A gain of 80 per cent. in the gross earnings
of the Lake Erie 81 Western in the first
quarter of 1889, over those of the correspond
ing three months of 1888, is exciting a good
deal of favorable common on Wall street.
Joseph NJ. Griggs. who has been in the
employ of the Boston g. Albany road forty
seven years. the last twenty-four as its gen.
eral ticket agent, has resigned, and his son
Geo. b. Griggs has been appointed his sue
cessor.
In a short time the train-dispatchers of
this State will have a special meeting. to
tional neutrality-suspicious. Association,
which holds its annual meeting in this
city, June IL.
1t is quite evident that the Pennsylvania
Company does not intend to close it's out
sid office, on the corner, of Illinois and
Washington streets, for some time. Yester-
day the company renewed its lease for a
term of years.
Ex-Presldent Spencer. of the Baltimore 81
Ohio road. has been carefully inspecting
the Chicago & Northwestern road, looking
specially after its physical condition. 1t is
limited that he does so under the direction
of the Vanderbilts.
The New York Central ANNOUNCES reduced
rates to parties of ten or more, copying
after the Pennsylvania Railroad Company
IN the matter. WCSt OF P1ttSDurg the
Pennsylvania people think it a violation of
the interstate law to do SO.
The Piedmont Airline. in connection with
the Pennsylvania line, has ~inaugurated a
system of excursions between New York
and the City OF Mexico. The distance,
5000 miles, is made in less than one hundred
hours. Two excursions are run each month.
At a special election at Kokomo, yester-
day, the proposition TO vote $4,000 aid to
the KOkomo Belt railway was defeated by
200 majority. The road is already in course
of construction, and will be completed by
the Board of Trade.
Chicago shippers continue to agitate for
a reduction of Interstate tariff rates to the
same basis as the Iowa rates, and it is stated
that they propose to bring the matter be-
fore the Railway Commissioners of Illinois
and ask for a reduction to Mississippi river
points to equal the Iowa basis.
Yesterday. in commenting on the cut
d-own-expense orders which the Pennsyl-
yania lines are sending out, one of the of
fcials of the Western lines said: with
this road the study of economy is period
ical, and is absolutely necessary in order to
prevent reckless extravaganza IN the great
corporation"
The shippers on South Meridian street
are not pleased with the manner they are
approached by the secretary and inspector
of the Indianapolis Weighing and Inspec-
tiOn Association. An old businessman does
not like to be told that if he does certain
things he may expect to be landed in the
penitentiary.