The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-08
THE MONON'S TROUBLES
OVER A MILLION OF IT'S SECURITIES
HELD DY PRESIDENT THOMAS.
Death of G.. II. sherman-The \. V, y.
ri. & II. to EcuiD Its Providence
Division with Electric Power.

| cussing the appointment of a receiver for
| the Louisville. New Albany & Chicago road.
| 1t alleges that an obligation to a New York
| bank which had matured had something TO
| do with the reeeiyership. although the real
cause was the suits in the Beattyvile bond
| matter. The Investor says: "Apropos of
the Louisville, New Albany & Chicago re-
Ownership. it may be said that statements
which have been made regularly have
shown the road to be in good shape finan-
cially, fully able to meet all its obligations
| and earn its interest and other fixed
| charges. It's physical condition, too, is
known to never have been better than at
| present. 1t responding remarkably
well to the money (some S. 600, 000) which
has been spent for betterments under the
| new management, when suddenly it was
| precipitated into bankruptcy. Years ago
| Mr.. Carson, who was then vice president
| and general manager, with some of his
associates, entered upon the construction
| of road in Kentucky called the Beatty
| vile road, for short.
| 1T is officially stated that Carson re-
| ceived 100000 for securing the guarantee of
| the Monon, in which he and some of his
| associate directors were Interested To ac-
complish this, he called a meeting, at which
eight out of thirteen directors We're invited
and present, and this meeting authorized
! the guarantee, although the statute of In
| diana expressly declared that any guaran-
tee of bonds by a railway must be pre-
coded by petition of majority of the
stockholders of the corporation seeking the
| guarantee. AS soon as the stockholders of
| the Monon heard of this action of Carson
and his clique, they called meeting and
| all his associates from the board. Carson
died few years ago. Under these circum-
stances the Monon company has been
claiming that the guarantee had no rea-
| tons to the Monon and the latter received
no benett or money as consideration for
its alleged guarantee. The Beattyviile road
does not come within seventy miles of the
| A1onon road. Its bonds have been worthless
! Tor several years past, no interest has been
| paid on them, and the road could not sell
| fer receivers certificates, but a bright law
| yer in Louisville found he cound get the
| which he did, and the judicial decision of
Judge Taft saddles the Monon with the
! will be taken to the United States Supreme
| Court. which convenes in October, and a
| However, this does not save the Monon
from reorganization Within a few days a
CON mittee will be appointed, representing
| the bondholders of the road, and a process
| OF foreclosure, under an existing mortgage,
will be instituted. 1t is stated there is not
| likely to be an assessment of the stock
| since the property was thoroughly recon-
structed during the past four years A
leading official of the company safes that
the floating debt of the road aggregates
about $500, 900. which is the liability referred
to in the foregoing by General Thomas
The road. he says, was assisted in carry
ing this by a prominent bank and it was
intended to bond the Lafayette shops and
Indianapolis terminals. sell the securities
and pay off the bank. But when suits We're
commenced in the Beattyville claims the
bank refused TO render further assistance.
President Samuel Thomas has personally
it is stated by a leading director, over one
ferred stock, and in excess of one million
invested in the bonds. The annual report
for the year ending June 80, 1896, has not
yet been made public, but will appear
shortly, and. | am assured. will show a
surplus over all charges of in excess of
500, Co.,
Alleged Violations of Law.
series of important Investigations of
charges against railroads throughout the
West will be made by the Interstate-com-
merce Commission, beginning at Chicago
in the United States courthouse Sept IT,
Many of these cases are of great signifi-
canoe to railroads and shipping interests
generally. One of the most important is
that of Paine Bros. & Co., of Milwaukee,
VS.. the Lehigh Valley Railroad ct al. The
hearing of this case will be on charges of
unreasonable rates on wheat corn, rye
and barley in cargo lots from Buffalo to
Philadelphia, New York and other points.
The Paine company is the lake shipper
of these cargoes. This will be heard at
Chicago Sept. II. The dates of other hear
ings follow: At Chicago Sept. Is, S. r.
Hogaboom of Crestop. Ia, VS.. the Chica-
burlington quincy railroad, 1nVOlV-
ing alleged excessive rates on hard coal
in carloads from Chicago and Streator
Ill, to Creston, Ia; Suffern, Hunt & Co,
Decatur, Ill. VS.. the Indiana, Decatur &
Western railroad, involving excessive rates
on corn between Garrett and Camargo
ILL.,, and Indianapolis Ind, and alleged
overcharges from shipping shelled corn
from Lintner, ILL.,, to Cincinnati. The COM
mission will also investigate on Sept. q
alleged unlawful rates and practices in the
transportation of grain and grain products
by the AtchiSon, Topeka & Santa Fe and
Others to be adjourned for further hear
ing at Kansas City. Mo-, Sept. "a at Kan
sas City Sept. 25. Board of Railroad Com
missioners of Kansas VS.. the Atchison
road. alleged excessive rates on corn in
carloads from central and southwestern
points in Texas and Louisiana; Wichita
Commercial Club Association of Wichita,
Kan. VS.. the Atchison road. on similar
charges; transportation charges on export
and domestic traffic by the Kansas City,
Fort Scott & Memphis road. AT St. Louis,
Sept. 2S Business Mems League of St.
Louis the Iron Mountain & Southern
railroads eft al. alleged excessive rates
various kinds of freight in less than
load quantities from St. Louis and other
points to Texas points; transportation
charges on export and domestic traffic by
Missouri Pacific and Iron Mountain roads.
and on Sept. 30 Biloxi Mississippi Milling
grain and coal alleged excessive rates from
East St. Louis and other points to Biloxi.
George B. Sherman Dead.
L. J. Baker, general agent of the White
line at this point, yesterday forenoon
ceived telegram from Buffalo stating