The Indianapolis journal., 1893-05-09
NEW .oNDs AND STOCKS.
Citizens Company Files It's Mortgage for
Si,OcO,00O.

Ciuzens Company Files It's Mortgage for
S4,OcO,O0O
The Citizens company yesterday took
steps toward increasing it's stock and bond
issues to a total of 100000 as announced
in its circular last winter. At half past
O'Clock the company filed In the recorders
Office the four-miliion- dollar mortgage
npon lis property. which was formally au-
thorized at the meeting of the directors in
April. The Instrument. which IS dated
May l. recites the incorporation of the
company in April, 1883, and subsequent
purchase of the property from the Citizens
Street.rsilway Company; the mortgages
of A. G.. Porter to secure the three-hundred.
thorsand-dollsr six-per-cent. bonds due in
1901 and the mortgage to the Illinois Trust
and Savings Bank and Stoughton j.
Fletcher To secure bonds to the amount of
SSCO.O0O due IN 1896. or before. at the option
of the company. of which amount there is
still 100000 outstanding. The mortgage
flied yesterday Is to secure the payment Of
the four thousand forty-year five- per- cent.
gold bonds of $1,000 each which were de-
cided upon during the winter The mort
gage covers ell the property or the COM
paDy of every description in the city and
suburbs, and contains number of oondl.
tions and stipulstions for the management
OF the property subject TO the mortgage.
it Is prov ided that the company il t9 be in
possession and full control of the operation
OF the property until default in the pay
ment of the interest upon the cou .ons
which are made pay able in May and Novem-
ber of each year. It is not to permit or
suifer waste. 1t has power to sell or other
wise dispose of, free from lien on account
OF the mortgage. motors. cars, vehicles,
chinery or implements. which have become
old or unit for use In any way, or unneces-
sary for the operation of the road;
and by giving the mortgage.
the Solicitors Loan and Trust Com
pany. twenty days notice in writing
may. subject to specific objection by it, sell
or otherwise dispose of other property COW
cred by the mortgage. except the railroad.
with its rights and franchises. and apply
the proceeds of the sale to replacing the
property sold or to the benefit of the mort
gagged property. They also have the right,
with the written assent of the mortgaQee.
to abandon any line for which n preferable
line shall be su bstituted- In case of de-
fault IN payment of interest for period or
six months the principal and accrued in
terest shall become due at the election
of majority of the bondholders filed
with the mortgagee. Foreclosure pro-
ceediDgs may be brought by the mortgages
tor default In payment. and meetings
of the bondholders may be called
by it. and shall be called upon the petition
OF SlOO. coo of the bonds, the meeting to be
held in Philadelphia. unless otherwise
stipulated by the bondholders. The entire
issue of bonds is to be deposited with the
mortgayee. aud the first one thousand are
to be held by it to redeem the bonds issued
upon the other two mortgages formerly
executed; the disposition of the remaining
three thousand is to be with tho board of
directors of the company. The exclusive
right of tion 10 vested in the mortgage,
except upon its refusal to act. when 1t may
vest in the bondholders by the tender of
sufficient indemnity.
The instrument is signed by President
Mason and Secretary Anderson for the Citi-
zens' company. and by President Richard
w. Clay and Secretary Daniel w. Slack
for the Solicitors Loan and Trust Com
pany.
Dispute as to the Incorporation Fee.
The Citizens Street-railway Company
yesterday filed with the Secretary of State
O certificate Of increase of capital stock
from 100000 to s5.CO0.0o0. The meeting
ut which the increase of stock was
authorized was held April 26 The sub
scribers TO the certificate were Fl. Sellers
Mckee. holder of a. 995 shares, and Richard
w. Clay. William L. Elder. Murray A.
Werner. Henry Jameson and Augustus L.
Mason. each the holder of one share of
stock. The amount charged by the Score
tary of State. Captain Myers, for the in
corporation was $1,000. but the company
paid &c under protest. Its representatives
contend that the company having filed It's
articles under the old law. with the
privilege at any time of increasing the
amount to $1,000. 900, is entitled to the ad-
vantage in this instance. The company
admits Its liz oility for the excess above the
Is. 900. OC0. but holds that it ought not TO be-
required TO pay for the g. 900 OOO which
they say they had q right to include IN
81 s.l +
corporation. Captain Myers agreed TO sub
nit the question TO the Attorney general
and in the meantime to hold the checks in
his own hands. For convenience IN sur
rendering the excess charged, If need be.
the money was paid in two checks. each of
So OCO