The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-12-03
MANAGERS STRIKE A SNAG
The Proposed RaiIway-Tonnaee Pool
Not Likely to Be Put Into Effect.
Lines West Of the Missouri Object to Dividing
Their Live Stock Traffic with Eastern
R~oads-Peoria & Eastern Speculation.

Their Live Stock Traffic with Eastern
~Roads-Peoria & Eastern Speculation.
All that has been lone toward the estab-
lishment of o tonnage pool In the territory
west of Chicago is likely TO be undone-
While all the roads agree that o division of
the competitive traffic Is the surest means
of securing a proper maintenance OF rates
they are not agreed as to how the division
should be made or as to the territory and
traffic to. be included. IL is true the COM
mittee of managers having the matter In
charge succeeded in adopting certain
portions of the proposed agree
ment covering the Southwestern. West
srn and Colorado business, but even
In those portions IL was necessary
TO pass temporarily the item OF
live stock. Roads terminating at the Mis-
souri, river, such as the Chicago q Alton,
the st. Paul ana the Chicago Great West
ern, insisted that all live stock shipments,
no matter where they originated, should
be divided at the Missouri river on the
same basis as traffic originating there.
The Atchison. the Rock Island and the
Burlington would not consent to this,
claiming that they were entitled to the
largest share of the traffic originating on
their lines in Texas, Kansas. Nebraska and
other territory west of the river. Since
they have been to the expense of building
and maintaining roads in that part OF the
country they pronounce as absurd the de-
mand of the Missouri river terminal lines
for an equal share of the business at Kan
sas City and Omaha. So the matter stands
30 far as the question of pooling live stock
Is concerned. And yet some of the
roads are determined to have no
agreement unless live stock IS
Included. Still another formidable
obstacle will confront the managers when
they come TO consider that section of the
agreement covering the Northwestern ter
rltOry. 1t trenspires that the Chicago ~
Northw estern and the Chicago, Milwaukee
include that territory in the pool, as to do
80 would be to ~rellnqUlsh some OF the ad-
vantages which they now possess over their
competitors. They will probably argue
that the refusal of the Great Northern TO
subscribe TO any agreements will make 1t
impossible for them to apply the pooling
scheme 10 that particular region. But the
North west must be inclnded, OR there Will
be 10 tonnage pool. That IS the determl-
nation of the Burlington, the Chicago
Great Western and other competitors OF
the two big systems Chicago and
st. Paul. That portion OF the managers
committee representing the Northwestern
lines will meet at Chicago next Monday.
hnOtnoA nlCCllnB VI tnO 70 .
whole will not be held until called by
Chairman Midgley, and that will not be
sarller than January. If at all
Future of the l., ID. & w.
Now that the Supreme Court of Indiana
has affirmed the decree foreclosing the
first mortgage on the Indianapolis. Decatur
e. Western, some interest will be attached
TO the of the lltlRants. Under
the decree the first-mortgage bond holders
Or their trustees can. In sixty days, adver-
tise and sell the road &C foreclosure sale,
unless. within the sixty days, the oom-
pany or the holders Of the ~second-morr-
gage bonds ask for q rehearing of the case
and it Is granted; then 1t may be tied up
for O year more. 1t is apparent that, for
the interests Of all concerned. this road
should be sold to some syndicate that can
extend it westward to some good railroad
point with which the road could form some
tratic Alliance. Its connections at Indian
apolis are good. and with something at the
western terminal to help it out the road
would ct once become o valuable property.
The question now arises, will the deal by
which the Cincinnati. Hamilton IL Dayton
was to secure control of the L., ID. ~ w.
again be agitatedi The c.. H.. & ID. is a very
natural connection for the l., ID. IL W.. but
unless the latter were extended westward
IL would be little else than a branch to the
c., II. * i. Trustee Peirce said last night
that unless O rehearing was asked and
granted sixty days from now, the road
would certainly be properly advertised
n sold under foreclosure sale. The road
extends from Indianapolis to Decatur. ILL.,.
153 miles. On April J., 1889, 1t defaulted,
q in July the road was turned over to II.
b. +. Peirce and b. A. Sands. trustees of
the Indianapolis. Decatur 81 Springfield
mortgage. In February. 1892. a decree of
foreclosure under the Indianapolis. Deca-
tur II Springfield first mortgage was con-
firmed by the general term, with right Of
appeal to the Supreme Court of the State.
a reorganization plan was offered Oct. 8.
1880. but this was not consummated. and a
new plan, dated Aug. 26. 1891, was offered
by holders OF junior securities, trust re-
ceipts under this plan for 81, 3S2, 500 second
mortgage bonds being listed on the New
York Stock Exchange In March, 1892. The
last plan of reorganization contemplates q
cantIol of the stock and guaranty of the
new hrst-mortgage bonds by the Cincin-
nati, Hamilton * Dayton. A considerable
majority of the junior securities has been
deposited, and there IS a possibility that
The plan may yet be contaminated.
The Changes oE the Msckey Lines.
The traffic alliance between the Evans
vile 81 1erre Haute and the Chicago d
Eastern Illinois. which was entered into
DCC. L, 400, CApA4co OA Leu. 4 !, 1cO-, Wultu
led to the changes heretofore announced.
To those we'll informed the change was not
so much of a surprise, as it has been known
that II. ii. Porter, largely interested in the
Chicago * Eastern Illinois. has been work.
ing for years to Dust Nr. Maokey from the
presidency of the L. * L. H., using the
same tactics he did to o ust HIM from the
presidency of the Chicago IL Eastern Hi.
nois. George Saul succeeded Mr.. Mackey
but renamed with the road but two years
when ii. ii. Porter practically became its
president. and placed NJ. j.. Carpenter in
that position. he Porter being chairman
of the board of directors. No one will
question as to Mr. Mackey having made 9
good record as president of the Evansville
& Terre Hsute, but its prosperity is doubt
less due as much to q. j. Grammer, wht
succeeds him as president. as to Mr.
Mackey. In commenting on the receni
change on the Evansville * Terre Haute
the Evansville Courier says 1.-THE road
while il passes out OF the hands of one
of the best railroad managers IN the
country, has been placed under the con
troll of Capt. e.. j. Grammer. q man whose
interests are always with Evansville. and
who Is IN every way worthy and capable
to succeed Mr. Mackey. He will also have
control of the G. X L. /. railroad, which II
q most important factor In the great line
from Chicago to the South. Since MIR
Maekey assumed control of the +. q II. IL.