The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-12-13

STOCK YARDS AND UNION RAILWAY
COMPANIES ARBITRATION.
Committee Decides that Former Com
pany's Position Should he Sustained
-Relatcs to a Rental bonus.

The differences between the Belt Railway
and Stock Yards Company and the Union
Railway Company, which involved an inn
mense sum OF money ultimately, have been
settled by a board OF arbitration to which
they were submitted. These differences CON-
cerned the amounts paid by the Union Rail-
way Company 10 the stock yards peop.e.
There was a smaller matter of dispute over
a claim for water privileges at the yards,
but this claim, which has not yet been ad-
justed, was not a part OF the important
matter at issue. While the decision OF a
majority Of the board OF arbitrators means
that the Union Railway Company will pay
TO the stock yards company about 1 5000
in charges for the year. it has a more far
reaching effect, for 1t establishes the equity
OF a payment, proportionate to the extent
Of the business, each year as long as the
lease OF the Belt road to the Union Railway
Company continues, and this lease is one
OF ninety-nine years OF life. So ultimately
the sum at Issue will amout TO more than a
million.
The arbitrator selected BY President
ijams, OF the Belt Railway and Stock Yards
Company was Joseph It. Tanning. while the
Union railway chose s. NJ. FELTON,, receiver
OF the Queen & Crescent railway system.
These two gentlemen were unable. to come
TO an agreement, and, in accordance with
the provision of the lease. they chose as a
third arbitrator S. r. Galloway. president
OF the Nickei-plate road, and one of the
s~hrewdest railroad men in the country.
Messrs. Tanning and FELTON, proceeded to
argue the questions with Mr.. Galloway at
a meeting in Cincinnati. After having the
matter under Amusement for some time
Mr.. Galloway announced that he agreed
with the position taken by Mr.. Tanning.
All that yet remains is for the majority or
The board to draw up a document showing
its finding.
A short time after the Belt railroad was
built there was a misunderstanding be-
tween the company controlling IL and the
Union Railway Company. The Union Rail-
way Company threatened TO build another
road paralleling the Belt, and had this been
done the old road would have been a dead
property, for the Union Railway Company
is composed of all the railroads centering
IN this city. The Bet road company saw
the danger and agreed to a compromise by
which a commission Of three DISTINGUISHED
civil engineers. men familiar with railroad
construction, should aPpraise the property.
The Union Railway Company agreed to
lease the Belt road at an annual rental
equal to 8 per cent. on the appraised value.
Wnlcn was nXed at $ioO,OO by the commits
sion. In addition the Union Railway Com
pany agreed TO pay to the other company
a certain amount on each car delivered at
the stock yards. 1t was TO the interest OF
the Union railway to have the stock yards
people build up a big institution at West
indianapolis, for IL would bring much
traffic over the roads centering in Indian-
apolis. 1t would. OF course. be Of as much
interest for the stock yards folks 10 bring
stock to the city, not only because the
yards would profit thereby but because the
revenues from the Belt road would be
greater. Though the appraisement of the
Belt was regarded as low, the contract as
to the bonus on each car was regarded as
a fair one.
Recently a wave of economy has spread
in railway circles, and the managers have
felt that the criminal expenses should bear
the brunt OF any cut. The Union Railway
Company wanted to lower expenses in this
city, and as one measure sought TO reduce
this bonus paid the Belt Railway and Stock
Yards Company. The reduction asked
amounted TO $4,000 at the present time,
or about two-thirds OF the amount annually
paid.
The decision of Mr.. Galloway was quite a
victory for Mr.. Tanning. who looked after
the Belt Railway and Stock Yards Conn
pany's interests. 1t is said there is no APP
peal from the decision OF the arbitratOrs.