The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-11-14
INDICTED OFFICIALS
Railway Men Accused officiating
the Interstate Commerce Act.
Test Case at Kansas City That May Re-
suit in Many More Indictments
Rates Cut by the c.. & L. l.

The cases charging violation of the inter-
state-commerce law against Milton Knight,
OF st Louis, general traffic manager; S.
y. knight, Of St Louis, general freight
agent, and H. 3. Mcclellan, Of New York
city, general Eastern agent of the Wabash
railroad, were taken up, yesterday, in the
United States District Court, before Judge
Phillips, at Kansas City. The Wabash off,
Gals were indicted last April by a federal
grand jury, at the instigation of Frank
K~retchmaer, Of Chicago, special agent Of
the acknowledgements Commission. The
special act for which the officials were in
dicted, as set forth in the indictment, was
charging the Doggett Dry Goods Company,
OF Kansas City, s107 less than the regular
rate on a shipment Of goods to Kansas
City from New York city. The railroad
officials deny any violation of the law and
claim that they acted as agents for the
connecting lines which originally accepted
the shipment in New York. Wells Blod-
gett, the general solicitor for the Wabash
railroad, introduced a demurrer to the in
dictments. He argued the case at length
and was followed by District Attorney
Neal, on behalf of the government. If the
demurrer is sustained the defendants will
be discharged, but if overruled, the cases
will so before a jury and be tried on their
merits. The case is a test one and should
the defendants be convicted many more
indictments will follow against the officials
Df other roads who are accused Of openly
violating the law.
Placing Their New Securities.
The Big Four and the Monon financial
managers, who have been waiting for an
opportune time to offer their new securi-
ties seem to nave come to the conclusion
that such a period has been reached.
Messrs. Drexel, Morgan & Co. offer for
subscription at S715 and accrued interest
from June 1, 1893. $~5.OOO.0OO o~ne-hundred-
year general mortgage 4 per cent. gold
bonds of the Cleveland, Cincinnati, Chicago
& St Louis Railroad Company, being part
Of an issue limited to S5O,0O0,000, created for
the purpose of consolidating all the debts
Of the company secured by mortgages on
the various properties nov forming part OF
the consolidated company, and for provid-
ing additional terminal facilities, equip
ment, construction, etc., as may be required
by the growing necessities of the company.
No further issue Of these bonds can be
made until after July l, 1894, and then only
az the rate OF $1,000, 900 per annum for con-
struction purposes or for the acquisition of
property. a simultaneous offer Will be
made in London, England.
The management of the Louisville. New
Albany & Chicago Railroad Company, act
ing under authority conferred by the stock
holders, last April, has decided to sell fif-
teen thousand shares of the companys pre-
ferred stock at $40 per share. This issue
Is offered to the holders of both the COM
mon and preferred stock of record on Nov.
10. Each holder is entitled to subscribe on
or before Nov. 80 for the new preferred
stock TO the extent of one-eighth or his
h. hlings, and must make payment for the
same on or before Dec. 10, when the certit-
rates will be ready for delivery. The pro-
reeds of this sale will be used to pay for
equipment which was bought some months
ago, partly to supply q deficiency from
which the road has suffered. 1t is esti-
mated that the normal earnings hereafter,
owing to the improvement in the physical
condition of the property and the additions
10 eouipment, will be sufficient to maintain
dividend payments upon the preferred
stock. These payments Will be made semi
annually, in January and July. and 1t is
understood that the first one Will De LOT the
current six months.
East-Bound Shipments from Chicago.
The east-bound shipments from Chicago
last week amounted to 54.9S2 tons, against
57,S55 tons for the preceding week and IA
66e tons for the corresponding week of last
year. The roads carried tonnage as fol-
lows: Michigan Central. 1853: Wabash, g.
$40; Lake Shore, 9,9S1; Fort Wayne, ssh;
Panhandle, 6,991; Baltimore & Ohio, $3.50;
Grand Trunk, 2,6S2; Nickel-plate, 4,613; Chi
cago & Erie, 6,5l5; Big Four, 2,Rl. Ship
ments were made up of the following ar
ticles: Flour, 1,940 tons; grain and mill
stuffs, n ,357; provisions, lard, ETC., 1884;
dressed beef. II. 913; fiaXseed, 1858; butter,
I.113; hides, 2.56S: lumber, 1862; miscellane-