The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-08-15
AFFAIRS OF THE MONON
AUTHORITATIVE DENIAL OF EAST
II RECEIvERsHIP RUMORs.
The Lake Erie & Western VIII Not
Railway News.

Regarding rumors Of impending receiver
ship for the Louisville. New Albany & Chi
cago railroad. President Thomas. OF that
company. is of opinion that the depression
in the company's securities is traceable en-
tirely to alarm over the recent decision of
Judge Taft removing the injunction against
the BesttyviIle railroad bondholders, which
allows them 10 again sue on the alleged
guarantee OF the Kentucky company's
bonds by the Monon, although seventeen
such actions have hitherto been decided in
favor of the Monon. The effect on quota
tions of the securities. however, seems to
General Thomas excessive and indiscrim-
mate. He says the bonds Of the New AL
bany company ought not TO decrease IN
value even il the Beattyville litigants
should succeed to the full extent of their
hopes and that the stockholders would also
find means to defend themselves. but legal
defenses against the unjust claims have
not been exhausted by the New Albany
management General Thomas says: THE
lawyers of the Monon deem the defense
of the company to be impregnable, but
should the litigants attain final acknowl-
edgement in their favor the claim would
rank only as an unsecured debt, subse-
quent to all the existing mortgages, and
1t would be extinguished by an assertion
of the rights of the mortgages. Should it
ever become necessary for the mortgage
to take action to e~Xtinguish the claim there
seems no doubt that the road will be Ill
timately restored to the shareholders and
that there is no danger of their stock be-
ing wiped out. The equity in The road is
valuable and the best efforts of the man
agement Will be directed TO maintain it in
w. II. McDoei, vice president and general
manager of the road. sent u tele-
gram last evening stating that there is
not the least ground for such a report.
The company does not owe a dollar it is
not able to pay. A local railroad man who
this company says but few companies are
in better shape than the Monon fnan-
cially and physically: under the Thomas
managemen mt improvements have Deen made
which have placed il among the standard
roads of the country; little money need
be expended on roadbed or equipment of
the lines for some. years, and in depressed
times this is a very importan item. The
road, he says. is being managed econom-
ically, meets all current expenses and Is
paying its fixed charges with the greatest
promptness; not q dollar has been ex-
pended unwisely In the improvements made
70 the property. He felt sanguine that it
Will be among the last OF Indiana roads
10 so into the hands OF a receiver.
Fast Freight Lines.
Among the first announcements after the
Joint Traffic Association was in
operation was the statement that
there would be a general cutting
down Of the fast freight lines and
a saving of at least so per cent. in the
operating of the freight departments of
the trunk lines. Over a year has passed,
and there are more fast freight
ill., a. -.
Traffic Association was formed. The
older of the fast freight lines are appoint
ing agents in new fields and the trunk
lines and leading systems of railways are
paying out more money to keep fast
freight lines In operation than ever before.
A few days ago a representative Of the
Journal. was In New York city and in con-
versation with several prominent railway
officials asked the cause of this reaction
the last few months in favor of fast
freight lines. OF the number approached
on the subject was J.. d. Laying,
vice president and general manager
of the West Shore road, and
one of the best-informed railroad officials
in the coutry. He were the question
by saying that for the last twenty-five
years every few years some uneasy rail-
way Official would ~inaugurate a scheme
to do away with some of the fast freight
lines and cut them down to one line for
each of the runk lines until the matter
had gone SO far that it was thoroughly
investigated, when II was plainly shown
that TO abolish the various fast freight
lines and let teach road, through its own
men, secure business, would be more eX-
penSlVe 10 the roads and less satisfactory
TO the shippers than to have the present
number OF lines and the sharp competi-
ton which 1t e%ngenders. He thought that
tho fast fpof~hf lines uVara in a p m O. n
position than at any time in their history.
Others c0nversed with expressed much the
same views. The first fast freight line es-
tablished was the Merchants Despatch, III
1855, by the New York Central and its
Western connections; the next vas the
the Erie Despatch by the Erie. the Con-
tinental line by the Baltimore d Ohio. and
there are now in operation forty-two dis
tinct fast freight lines, twenty-eight do
ing business in Indianap polls. just now the
diferential lines are doing the most bust
ness. Trade is dull and shipments light
and merchants do not care SO much for
time as when business is good. The diff
ferential lines in this city are the Kama
wha Despatch, over the Big Four; the
vile division of the Pennsylvania lines;
the National Despatch, the Great
ilton & Dayton; the Ontario. over the
Bee-line division of the Big Four, and
the Canadian Pacific. over the Lake Erie
6 Western. The d~iTerentials these lines
get enable them to do considerable bust
ness. The twenty-eight lines which have
representatives at indianapolis are as fol.
lows: The White line, the Merchants
Despatch, the Central States Despatch
the West Shore. Canadian Pacific De-
spatch, N~ickel-plate line. Erie Despatch
Traders Despatch, Canadian Southern
line, Continental line. Commercial Elk
press. National Despatch. Great Eastern
line. Reading Despatch, Lackawanna line
Kanawha Despatch, Interstate Despatch
Blue lire, Hoosac Tunnel line. Ontario
Despatch. Empire line, Red line. r.. w
e. O. line. Union line. Lehigh & Wabash
Despatch. Lake Shore az Lehigh Valley
route. Norfolk & Western Despatch. Cum,
berland Gap Despatch.