The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-01-13
Important Suit Decided.

CHICAGO, Jan. 12.-The suit against the
Chicago g. Atlantic Railway Company, in
which the Farmers Loan and Trust Com
pany, the Erie company and the first and
second mortgage holders are parties, has
been decided against the Chicago g. Allan
tic, Judge Gresham directing that these
mortgages be foreclosed and the property
sold. The suit was an important one and
has been watched with interest by railroad
men. The first mortgage IS for 6, SOC, 900.
with the Farmers Loan and Trust Com
pany as trustee. By direction of the court,
any surplus remaining after the satisfac-
ton of first-mortgage bonds and interest is
to be held for the benefit of the second
mortgage bonds, according TO their respect
bonds are for S, ZOO, 900, and the bonds were
issued under an agreement between the
Erie and the Chicago d. Atlantic. which
provided that these bonds should be held
by Hugh j. Jewett, who was then president
of both corporations in trust and as Sc
curity for advances made and to be made
by the Erie on account of the Chicago IL
Atlantic. The latter cOmpany'srOad hadnOt
been completed. and this plan seems to have
been adopted to enable it to complete its
Erie, through line between New York and
Chicago. The Erie. it may be said, has been
uniformly successful in the minor issues
settled by the decision of the case.
introduction of q reminiscence of the
famous Grant e. Ward episode. In order
to raise money to complete the construc-
ton and equipment of the Chicago &
Atlantic, Mr.. Jewett borrowed from Grant
giving Msra to Grant h Ward %i' the hone no Ss
Of the Chicago e. Atlantic for that
amount, Endorsed by the Erie Com
pany. and as further security, Grant
4 Ward received from Jewett, as col
mortgage bonds held by him as already
stated. While Grant g. Ward were embar-
raised and struggling to avoid failure, they
separated these bonds from the 81 600
note, and used them as security in the nego-
tiation of loans for their own benefit. For
its own protection the Erie Company was
obliged to take up this note, for which it
was indOrser, and in that and other ways
the Erie came into possession of $50 of these
second-mortgage bonds. Certain parties
holding part of the secOnd-mortgage bonds
denied the right of the Erie to the bonds
which 1T thus obtained, and that cOnsti-
tuted one of the issues of the case, which
was decided in favor of the Erie.
Denies the Rumor Once Week.
NEW YORK, Jan. lathe Times says:
''Wall-street has it that Charles Francis
Adams is to resign the presidency of the
Union Pacific Railway Company. The
same story has been heard in Wall-street
many times of late, but never credited.
Now there are reasons for believing it. 1t
is declared that Mr.. Adams will leave the
Union Pacific to take the position of chair
man of the newly -organizedIn Interstate Rail
way Association. That Office will not be
lacking in dignity or consequence. 1t will
carry, indeed, responsibilities quite as i'm
pOrtant as are the duties of the Union Pa
cific presidency. 1t is stated, too. that the
financial returns of the post will be quite
as liberal. The report of Mr.. Adams
resignation is circumstantial enough to
name Feb. Is as the date for his retirement
fir ON the Union Pacific Office"
Boston, Jan. 13.-An Associated Press re-
porter visited the Office of the Union Pacific
railway, this forenoon, and learned from
Mr. Gardner Lane, assistant to President
C.. +. Adams, that Mr.. Adams, in reply to a
request for information regarding his resig-
nation of the presidency of the Union Pa
cific to accept the Craftsmanship of the In
terstate Railway Association, facetiously
said that The denied the rumor every week,
and as he had already denied it for this
week, he should Lot make another denial
until Monday next"