The Indianapolis journal., 1896-03-04
CREATED A SENSATION
COMPLICATIONS IN FINANCIAL AZ
FAIRS or NORTHERN PACIFIC.
The Projectors of the New Line Say
the I. a. l.. Road VIII Certainly
He BuiIt-B. a. O. History.

~.
The biggest sensation that has yet devel-
oped in the Northern Pacific receivership
was precipitated at Milwaukee yesterday
by the filing Of the pleas of the Wisconsin
Central company and the Wisconsin Cen
tral Railroad Company TO the original,
amended and supplemental bills of the
Farmers Loan and Trust Company, on
which the receivership is based. The COM
panies make the claim that the Northern
Pacific company had absolutely no author
ity whatever TO issue any OF the numerous
mortgages with which the road is encum-
bered, and that In consequence. all of the
bonds issued under the mortgages, TO the
amount of nearly s50.O00,o00, are null and
void 1t is claimed that the Northern Pa
cific was prohibited by Congress from maxi
ing or executing mortgages on its prop
critics. unless on the express consent OF
Congress. This. it is claimed. the company
has never secured except in one instance,
and in that the lien created was long since
OF the filing of the original bill by the
Farmers Loan and Trust Company the
Northern Pacific company was indebted TO
the Wisconsin Central company for more
than 100000. The organization of the
Northern Pacific company under special
act OF Congress was set forth. This act
was approved on July 2, 1864. Section 10
provides that all the people shall have the
right TO subscribe to the stock of the COM
pany, and that mo mortgage or construc-
ton bonds shall ever be-issued by said COM
pany or said road, or mortgaged in any
way, excepting by the consent of the Con-
gress of the United States" The company.
IL is said, applied to Congress for per-
mission to issue construction bonds. and on
May 81, 1870. consent was given by Con-
gress. The lien thus created. however, was
soon after satisfied. It Ia then charged that
mo other or further authority has ever
been vested in the Northern Pacific COM
pany by Congress In respect to the Great
ing OF liens on or the execution or delivery
of mortgages respecting the Northern Pa
cific company" The issuance OF the vari-
GUS mortgages which now cucumber the
ra pOad Is 5bs rons,e sn never ne ,,tbnrze5
the issuance or gave its consent to the
making of the mortgages, that they We're
violation of the charter. For this reason
1t Is claimed that the mortgages and all
the bonds issued thereunder or covered
thereby are void and of no effect whatever.
The baltimore & Ohio.
The Baltimore Il Ohio is the oldest char
tered railroad in America and the oldest
passenger railroad in the world. Ground
was broken for the enterprise July 4, 1923.
by the only then surviving signer OF the
Declaration of Independence, Charles Car
roll. of Carrollton. No one supposed that
IT would be anything but a horse railroad.
Nevertheless, II was the original intention
TO extend it's operations to the Ohio river,
and the name by which Ii Is known to-day
is the name with which IT was christened.
May 2, 1890, the road was opened for
business from Baltimore to Ellicotts Mills,
thirteen miles. The first American pas
senger ear then used was about twelve
feet long A horse was attached, and Re
was good for eight miles an hour, carry
ing twenty-five passengers.
The first American locomotive ever con-
structed was tried upon this road. being
the handiwork of Peter Cooper. 1t then
drew. on Aug. 2S 1880, the first passen-
ger car ever propelled by steam upon any
railroad in the world, Mr.. Cooper acting
as engineer. 1t is also recorded that on
this occasion Mr. Cooper severely jammed
his thumb, which may be set down as the
first railroad casualty in history. The
road was opened to Washington Aug %,
river at Wheeling. W. Va, Jan. I. 1853; to
Cincinnati and st. Louis June 4, 1851, and 10
Chicago Nov. %. 1873.
and only few years ago boasted of an
undivided surplus Of millions in its treas
ury. During the life of President John w.
were looked upon as the very best among
Investments and the common stock sold
as high 225. at times going even higher
on the market at any price, and when
blocks of any size were offered they were
eagerly snapped up by investors. Trust
& Ohio stock, which paid high as 10
per cent dividends for years. The great
Johns Hopkins estate was heavily inter-
ested at one time. and the Garrett family
efill has millions invested in the COMPANY $
securities.
Until a few years ago a good deal of The
original Baltimore x Ohio stock was held
by persons in Indiana. but most of IL was
disposed of when the securities began 10
decline. The Herons and the Morrisons, or
Connersvlle, had considerable OF the stock,
and This stoo., and some of its securities
were among the assets of James Heron,
who died at Connersville a few years ago.
The Road VIII He Built.
'.I was rather surprised, said gentle
man who is interested in the new move
ment to build the Logansport & indianapolis
railroad, "at the card of Mr.. Q. A. Myers,
secretary of an old company formed 10
build this road several years ago. He has
no connection with the new project what
ever, and his denial of facts given to the
Journal are denials OF something he knows
nothing about. The road will be built, moi
withstandng this old and apparently de-
funcu enterprise Win the tACtplion VI liic
statement that some of the old company
had sold their stock. the facts as stated by
the Journal are correct 1t was the inten-
tion TO simplify matters somewhat by the
use of what was left OF the right OF way
OF the old company, and L am told that a
majority of the Logansport stockholders
were in favor of turning this over to the
new company, but that the purpose was op-
posed by the Indianapolis stockholders. who
are all relatives of Mr.. Myers. IL was
taken as a matter of course that the o'd
company would readily dispose OF the prop
erty remaining in its possession, and II
was on this presumption that the statement
was made to the Journal that an offer mad
been accepted. 1t should nave been, as the
construction of the road will practically
make il worthless, but il has not been and
probably will not be now. t
ST Louis Terminal Association.
The annual meeting of the stockholders
OF the Terminal Railroad Association was
held at ST. Louis yesterday and the follow
ing directors were elected for the ensuing
year: julius S. Walsh, Baltimore & Ohio
southwestern: William Doddridge and c. G..
Warner Missouri Pacific-Iron Mountain;