The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-19
BONDHOLDERS OBJECT
PROTEST AGAINST THE e. 4 RE.
& r. H. REORGANIZATION SCHEME.
ton Railway Company-President
Blackstone ON Tax Burdens.

The nonassenting bondholders of the
Evansville & Richmond, at meeting held
on Friday, presented much holder front
than the friends of the adjustment with the
Evansville e. Terre Haute looked for
Henry Douglass. who leads the opposition
said: From the day on which the Evans
vile & Terre Haute, first attempted TO
repudiate their guarantee, I have felt con-
WINGED that they were amply able to pay
the interest on these bonds. AS proof
OF this, ask your attention to these facts:
That previous to and on the first day of
March. 1894, the date on which the first
coupon was defaulted, the notice that the
interest would be paid, appeared in the
journal of Commerce in this city, and the
cash was actually in the hands of the
Farmers Loan and Trust Company to pay
them, so that the reason for nonpayment
then could not have been their not being
able to do SO, but suddenly the directors
discover that this guarantee is Illegal re-
fuse to pay the interest and compel the
bondholders to take proceedings through
the result OF which SO far has been that the
lower court of the State of Indiana, in the
strongest language possible. sustained the
Terre Haute under their guarantee
Mr. Douglass then quoted freely. of re-
added: according to their owl own bali bali
ance sheet they show a. sur
rerest on their bonded debt, of $l29, 427 and
by Harvey Fisk & Sons: HAD lathe the E ;ysIsa
the interest on the Evansville & Richmond
bonds, 1t would still have had a surplus
sver all = liked led clh,arges Of sssooo which
bankrupt corporation. the Evansville &
Terre Haute now ask US to believe they
Regarding threats of throwing the Evans
vile e. Terre Haute into the hands of a
receiver. MI. douglass said: Personally,
THIS does not Brighten me in the least
Should that be the consequence of a iinal
}ndgment AGAINST the, Evansville & Terre
Iautc, /, for one. will willingly take what
! get through a receiver rather than allow
the Evansville & Terre Haute to deliberate
parted with in good faith, entirely on 0 the
strength of their guarantee. I have nd
fear OF any sucn result and for the bond
noIderS announcement would quote, as
precedent, the case Of the bondhoIders Of
Cedar Falls in Minnesota against the mn
After fighting them for several Years and
being Deaten at every step. they have
sponge and are excnanging the bonds on the the
basis OF $l.20 for every 81, 900 for their own
first mortgage per cent bonds.'
Atoms Annual Report.
The thirty-second annual report of the
Chicago q Alton road was issued yester-
day. 1t shows large decrease in gross
earnings from 1885, an increase being shown
only in the matter Of express earnings. and
there it is only $216. The gross earnings
were: From passenger traffic, s204S,e l2 a
decrease of $S56.9o7; freight, s., 1881, 544 a de-
crease Of 1891, 1913; express, $1T2 SO, an in
crease of $n6; mails, $751; 79, a decrease OF
sfsS; miscellaneous. $13.171, a decrease of
Sa5,65l; total. 81. 1872 235 The decrease in gross
nearly II per cent. The operating expenses,
Including taxes, were $3,62S,6S7 decrease
of 81. OF 202. The total income of the road
was 50. 701. $50. made up of balance Dec. II.
1885. $50; interest on bonds, dividends
ss from sa tpsc rssspt FPS rssspts
ments amounted to s6,57,ai3, of which
amount 81 729, 414 was paid in dividends, leav-
ing balance Dec 81, 1894, of S. 10, 3337
In his report President Blackstone de-
clares that the decrease in earnings was due
to the miners strike, the strike of the A. r.
prevailed during the year He pays p aisiI-
ular attention to the subject of Taxation
snss for the sar s + aa so e al
cent. of all available revenue, including that
which is derived from the temporary invest
per cent. of the available revenue from the
traffic Of the road Taking into account
the income tax and the very great reduc-
ton of railroad earnings since June 80. 1893,
and especially in the calendar year 1894
in which the gross earnings of railroads
were reduced about $125 900 900, which sum
exceeds by nearly $25 900 900 the amount of
all dividends paid to shareholders for the
year ending June 80, 1893, we think Ii safe to
say that In 1894 the amount of taxes inn
posed on railroad companies is equal to at
least so per cent of the total amount of all
dividends paid in that year."
The Western agreement.
b. d. Caldwell, chairman OF the Western
trunk-lines committee, left Chicago last
night for st. Louis to confer with the Mis-
souri, Pacific and the Missouri Kansas &
Texas roads regarding the membership of
these lines in the committee The attitude
of the Rio Grande Western in declining
to become member Of the committee as
long as the Union Pacific is allowed it's side
trips. which are allowed only because the
Rio Grande Western gives stopovers at Salt
Lake City, Is likely to cause further com
plcations in the West, and it may be some
time before they are Strengthened out. Both
the Rock Island and the Burlington, which
are eastern connections of the Rio Gr1nde
Western, are disposed to take amicable
view of the situation, and the chances are
that the trouble will be adjusted within
Short time.
r., r. w. a. w. Headquarters.
The Findlay, Fort Wayne & Western will
on the LIST OF April move its headquarters
from Findlay o.. to Fort Wayne General
Thnppr AnHN NH