The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-09-24
Taking ont the Water.


The old New York, Pennsylvania & Ohio
railroad Company will soon to cease to ex-
list. At the recent meeting of bondholders,
held in London, the voting trustees were
authorized to commence foreclosure proceed
ings in order to turn the road over to the
new consolidated company. which is to
take the place of the Erie and its subsidiary
lines The trustees have published the scale
OF exchange by which the new company's
securities take the place of the old. The re-
duction in the securities is from $50. 900
10 100000, or just one fourth, which is
certainly as striking an example of thor
ough boiling down of watered capital as
was ever noted in this or any other country
Fer a single track road 43e miles in leng h,
The amount of its securities was very large.
IN commenting on this matter the Railroad
Gazette says: The Erie plan Of reorgani-
zation is one of the most severe which have
been put through successfully, but that part
IF 1t which deals with the New York. Penn
sylvania & Ohio is now seen TO be the Sc
verest feature of the whole. Never was
here a more vigorous boiling down OF cap
Ohio is ludlcrous example for overcapi-
falzation, and has been disastrous to the
foreign investors, who hold nearly all the
securities. The company emerged from the
foreclosure of its parent company the At
,antc & Great western, which had had a
picturesque and wholly disastrous history
Ital and their burden has been steadily in
ereased by the specious practice of capital
zing unpaid interest The increase from
his scheme has been peculiarly rapid, be-
,ause practically little interest has been
ever paid on any of the three mort cages
IN fact the charges on the small sum of
sS.0oe.cc0 prior lien bonds. which come in
ahead of the three other classes, used up
about all the net earnings each year, and
left nothing to be paid as interest on the
worthless mass of paper of various kinds
nd f0li0Wpd
The Traffic Agreement.
In railroad circles much interest is shown
as 10 the report of the committee of eight
appointed by the presidents to raise the
proposed traffic agreement. The fact that
oscar Murray, of the Big Four. and VIII
liam Duncan. of the Baltimore & Ohio
Southwestern. are. on the committe, and
Charles NJ. Hays. of the Wabash, is taken
as evidence that the original agreement viii
be modified TO conform TO the views OF Wes-
tern railroad officials. 1t is stated that this
committee, will be in session for several
days. and from a high official source is
learned that there Is very marked and
strong desire on the part of the presidents
to have the agreement adopted without de-
lay. To this end IL was said the special
subcommittee was appointed for the pur-
pose of Fastening the final passage OF the
compact and the assurance of the existence
or the L mon lTdlIlc ASSOCIATION, ana IL was
decided 10 begin the work of revision at
once. The statement was made that the ex-
ceptions taken to the measure were relative
70 the abolition of joint agencies, the re-
duction of fast freight lines and the manip-
ulation of the penalty fund. The idea or
one great central body invested with abso-
lutte power to fix rates vas praised, but
certain lines objected TO the manner in
which the details were to be conducted.
There is 10 be penalty fund to which each
system shall contribute stipulated sum.
a I'm Qra~
for violations OF the agreement, and just
how this fund will be handled has not yet
been agreed upon. Each of the principal
systems is to have representative on the
hoard OF control and there will be. besides,
three commissioners. When the special
subcommittee finishes its labors another
meeting of the presidents will be held TO
finally consider the revised agreement
The Freight-Rate situations.
The interview with one of the city's larg-
est grain shippers. published in the Journal
yesterday. was a subject of considerable
comment on the part of freight officials
ard shippers. The statement that Indian
apolis had been ruined as grain market
by the interstate-commerce act was very
generally conceded by freight officials. but
the statement that through the operations
of the interstate-commerce act the farmers
were losers to the extent of twenty dollars
ing enabled the roads 10 make higher rates
freight officials deny. taking the position
that the farmer at a way station gets his
proportion OF the through rate and this
avoids paying a local rate on a shipment
to some prominent grain center. where the
same grain Is given through rate. The
freight officials further say that the al
legged statement OF Albert :. White, some
years ago. TO the effect hat IL cost the
roads just ten and two-fifths cents per hum
dred pounds to haul one hundred pounds of
freight from Indianapolis to New York
cannot be borne out when .arefully figured
AS TO the matter OF advancing grain rates.
or. in fact, any other rate on east or west
bound business above the present basis.
almost without exception the freight OFF,
Gals said there was no probability of there
being any advance. With rates we'll main
tanned the roads We're now doing a very
fair business. with prospects of large in
crease later in the fall. and for that reason
II would be folly for the roads TO disturb
the harmonious conditions now existine
and which seem to satisfy the majority of
the shippers.
The Northern Pacific Case.
All doubts OF the intention OF Judge
Jenkins 10 maintain jurisdiction over the
Northern Pacific receIvership and OF the
receivers acknowledging his jurisdiction
and disregardfng the order of the Seattle