The Indianapolis journal., 1891-03-23
FUTURE OF THE MONON LINE
Much Depends on the Inspection Now
Being Made by New York Bankers.
If Satisfactory, Money Will Be Loaned to I'm
proyet the ROad-Brey fogIes sTroubles-Mr.
GreenOugh's Views on Various Subjects.

At $50 A. NJ. yesterday Samuel Thomas
and John Greenough. prominent bankers
of New York. in company with General
Manager Black, of the Louisville. New
Albany & Chicago road, left Chicago to in
spect the Indianapolis division of the
Monon system. Their train proceeded to
Monon. thence north TO Michigan City, and,
returning TO Monon. came south to Indi-
anapolis arriving here at 3:45 P. NJ. The
party remained here over night. and at
o'clock this morning departed for Frank
fort. going from that city. via the Lake
Erie g. Western. TO Lafayette, and then
south to New Albany and Louisville. They
will spend the day on this portion of the
road. examining the company's terminal
facilities at those points, and then leave for
New York Mr.. Thomas said that their
mission was simply to look the property
over and report to certain Eastern capital
lists, whom they represented. it's condition.
and after receiving their report the ques-
tion of loGning money to pay the COM
pany's floating debts and make further
needed improvements will be decided.
Does this mean a change In the manage
ment7D was asked.
property" said Mr.. Greenough, nothing
has been done or even suggested. How
ever it is evident that the people VINO ad-
vance the money will want men of their own
selection IN control"
will the MOnon become a part of the
East Tennessee, Virginia * Georgia sys-
temv
mo; all such reports are the work of SEN
satIOnal newspaper men. The +. T., V. IL
WI M nf ha ri
will the NOncn be consolidated with the
Lake Erie * Westernf"
Anything might say in that direction"
responded Mr. Greenough, would be in the
been broached by the bankers who propose
loaring money to the Monon. 1t would,
however, be safe TO say that, at least,
friendly traffic relations may be estab-
When asked as TO the physical condition
of the property, Mr. Greenough referred
the reporter 20 Mr.. Thomas, who said that.
so far as they had gone over the road. they
we'll satisfied that, if properly handled, it
had good future. The heavy traffic over
the line was a gratifying surprise to them.
OF the nearly two hundred miles they
passed over, yesterday, much of the track
was In excellent condition. There were
places where new rails were needed. and
on the bridges some money could well be
expended, although they were, doubtless,
safe. In ballasting. the road seemed to be
deficient.
Mr.. Greenough was asked what he
thought in relation to the fight that is
being made on President BreyfOgle. "The
tight said Mr.. Greenough, "is a matter of
President Breyfogle's imagination. The
newspapers have been harping for weeks
on the fight being made in New York and
in the West on him. So far as New York is
concerned no man or clique of men is max
ing q fight against him. The fact of the
ffar Ia hot fhxa 10 osx
and enterprising. and when he got hold of
the Monon he dipped into improvements too
deep and, with the trouble IN financial cir
cles last fall, he found himself heavily in
debt and unable TO dispose of securities to
liquidate those debts. The money the pres
ent syndicate proposes to invest In the
property will be used largely for liqui-
dating the accumulated Indebtedness of
the present and former managementsr
s. NJ. FELTON,, president of the East Ten
nessee. Virginia 81 Georgia, and the Queen
~ Crescent route, came up last evening
and Will accompany the inspection party
to-day. President Breyfogle, of the Louis
Vile, New Albany Il Chicago. is not with
the party. he having left with his family
for New York on Saturday night.
The annual statement of the Monon
shows that there are 511.96 miles of track
actually owned by the company. A con-
tract has been executed with the Pullman
company which has resulted In the saving
of 33l2 per cent. In the cost of equipment
of the corporation. The number of passen-
GERS carried during the year was 657. IA.
The total tonnage of freight carried was
]. .323, 423, an increase of 50 per cent. or So,
500 tons. The roads received in dividends
from the Chicago & Western Indiana rail-
way $4,000. and from the Chicago Belt
line 500, coo in stock. The statement also
shows the earnings and expenses in detail
Difficulties That Beset Railways.
A reporter yesterday asked Mr.. John
Greenough. New York banker, for his
views of the railway situation. There has.
think" said Mr.. Greenough, "been some
improvement of late. but it is still bad
enough for the stockholders. Many roads
have suffered serious losses through manip-
ulation of rates by irresponsible agea5s and
sometimes by general officers and other
officials engaged In depreciating the prop
critics and endeavoring to wreck them.
Many legislatures have been inimical. and
there is little show for the stockholders'
rights"
"Is there no prospect of release from such
antagOnistlc forcesY
II hope the worst point has been reached.
When the faith of capital Is shaken In en-
terprises the end cannot be far off, and that
Is the situation as lt relates to Western
roads of which Eastern money Is becoming 9
scary. On the other hand, roads of the
E0sL are coming lntO the IaNOF Oh ctplt0l-
lists This IS caused by difference in rail-
road management. that in the East being
regarded conservative and safe. while that
of the West is far from possessing those
essentials for obtaining the best-payiug re-
suits. Indeed. many of the Eastern roads
are badly managed. But while there may
be relief near. affairs must become very bad
before any genuine reform can be in
augurated. In the meantime capitalists
will show u preference for Eastern
line xvh hay l.
lent paying investments by good man.
agement. A few years ago some
of these lines were in financial straits, SO
much so they were not far from being
wrecked. Now the stockholders. as well
as the bondholders, are satitied with the
interests they have In them"
"Why Is II so difficult TO obtain money In
the East to bulld roads in the Westf
There are several reasons, hostile legis-
lation leading the list. In many cases
money is refused because the enterprises
projected are parallel roads. the
operation of which would cripple many that
are struggling to pay expenses and fixed
charges. Systems of management. too,
calling for extravagant outlays. prevent
largely the loaning of money. Then the
frequency of strikes in the West tends TO
discourage capitalists But think reforms
will be mplisLed in the next few years
chat will give the stockholders some
chance and put a check to bad railway
management"
Personal. Local and General Notes.
The Western Traffic Association will hold
avery important meeting IN Chicago this