The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-07-07
Special Finding in the Federal Court Re.
quiring Ito Pay Nearly 100000.
Remarkable Story Of How Railroad Vas
Built on Wind and GObbled Up
by Queer Practices.
Crawford's MethOdsin Acquiring the Iu.
dianspolis, Delphi & Chicago Road.
Peculiar Way of Securing O FOreclosure-Find-
ings of Fact and Law by Special
Master l.. c. Walker.

Special Master in Chancery ex-Judge
Lewis &. Walker submitted to the federal
court yesterday a voluminous report of has
findings of facts and of law in the sensation
al railroad litigation lnaugurated by the
suit of Charles L. Pope, receiver of the Chi
caRo * South Atlantic Railroad Company,
against :he Chicago ~ Indianapolis AIR
Line Company. the Indianapolis. Delphi ~
Chicago Railroad Company. the Louisville.
New Albany Il Chicago Railroad Company
and Erastus Hubbard and Nor
ris Sharp. trustees. The mas
ters report covers about two
hundred and fifty typewritten pages. and
constitutes one of the most interesting
tales of railroad wreoking. sharp practices
and utter disregard of vested rights that
ever found its way into the records of the
Indiana courts The hearing of the cause
began in October LAST, and the evidence.
argument of counsel and preparation of the
report has just been completed. and the
whole constitutes several volumes of very
interesting matter.
ORIGIN OF A BIG SCHEME.
According to the facts as found by
the master in chanoery, she Indian
apoIis, Delphi d Chicago Railroad
Company was orssnized in 1868.
and about the same time the Chicago
& South Atlantic Railroad Company wa
organized at Chicago. the scheme being to
construct line of railroad from the latter
city to Charleston. s. c. Among the In
corporators were some of the best-known
capitalists both of Indiana and Illinois.
in he af fau hc ha In-
diana and illinois companies were oonsoli-
dated under the name of she Chicago Do
South Atlantic Railroad Company. Both
companies had commenced the con-
struction of their lines before the
consolidation, and according to the
agreement all the right of way. subsidies
voted by counties and cities along the
route became the property of tho consoli.
dated company. which also assumed tho
Indebtedness. William s. Raymond was
made president OF tho company, and 10 nt
once proceeded to get q charter in Ken
tucky and other States which lay in its pro-
posed route. Under the scheme of the
projectors each State would have it's own
line and be under the control of o separate
board of directors. but Raymond was con-
nected with each as director. and was
president Of the whole company.
Immediately following the signing of
the agreement. the Chicago q South At
lsntic company put its engineers into
the field and commenced the work OF con-
struction. apparently carrying out in good
faith it's contract to bring the road through
certain Indiana cities as stipulated In the
agreements. The company also secured ad-
ditionsl donations. graded the roadbed.
built bridges and culverts and contracted
for various kinds of material In 1876
the Chicago IL Atlantic issued bonds for
the further construction Of the road
and mortgaged the entire line from
Chicago TO Indianapolis TO the Chicago
Trust and Savings Bank. the directors Of
the Indianapolis, Delphi * Chicago end OF
the road being present and two of them be-
ing on the committee that negotiated the
sale of the bonds. Soon after this the dI-
rectors of the Indiana section of the road
held q meeting and resolved that the Chi
cago ~ Atlantic were unable 10 comply
with the agreement OF consolidation,
and that it was the sense or the
directors that the contract should be an
nulled, and that the interests of the COM
pany demanded that they should have
absolute management and control OF the
road.
A QUEER TRANSACTION.
contract of consolidation was snnulIed.
but was done without the concurrence or
consent of the Chicago & Atlantic. At q
subsequent or adjourned meeting. at which
w. s. Raymond. president of the Chicago
81 Atlantic. and q director in the Indian
spolis Delphi & Chicago. was present. he
was induced to sign an instruments snnul-
ling the contract of consolidation, but he
said that he was not authorized TO do so
and refused 20 do it till the directors guar
anteed the payment OF the SUM of $4,000.
which wss due him on construc-
tion. When the directors of the
Chicago cL Atlantic heard of the tra1sac-
tion, they repudiated Hsymond's action.
but the Indiana directors proceeded 60
take possession of the road In Indiana. and
catered into contracts for work upon it.
About the CLOSE of 1877 the directors of the
Indianapolis, Delphi ~ Chicago exeoutod
to Morris sharp. of Ohio. deed of trust
covering all tho property In Indiana 20 So
cure an issue of mortgage bonds aggregat-
ing 500. 600, and due in twenty years. 1oo-
man. Hegler ~ Co. were then en-
ployed in she work of construction and
took practical possession OF the roadbed
under their control. The contractors. says
the master. were aware of all the proceed
ings and fully informed OF the claims and
rights of the Chicago * Atlantic. By these
separate actions the road was under two
deeds of trust, one 20 the Chicago Trust
and Savings Bank and one TO Morris Shsrp.
and the acuion of the Indiana directors
rendered the completion of the road by the
Chicago & Atlantic I'm possible.
Yeoman. having practically gobbled up
the Indiana end of the road by his con.
tracts of construction. proceeded 20
Chicago and succeeded IN having himself
elected president OF the Chicago a. Atlantic
the representation that he would see
that it's debts were paid. He and two men
named Thompson and Walker were chosen
directors. each having secured one share
of stock IN the Chicago & Atlantic. but al
meeting of the stockholders this action
was declared illegaL AT this point an
other factor appears in the complications.
In 1880 the Chicago * AIR Line
Railroad company was organized
and was incorporated under the laws OF
the State.
WHERE CRAWFORD CAME IN.
Harry Crawford was the movins
in this new enterprise. and the articles
OF incorporation show thct he had
$500. 900 of the alleged capital stock of Sl.-
600.00l The master says that the articles
were filed at the instance of Crawford;
that nothing was ever paid upon the SUBJ
scriptions of stock. and that every incor-