The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-11-01
A BIG VANDALIA SUIT
TERRE HAUTE & PEORIA Boyr
HOLDERS WANT A SETTLEMENT.
Also Ask that a Receiver Be Appoint-
ed III Court Finds 1t Necessary
Story of Guaranteed Interest.

4
yesterday filed a bill in the United States
Circuit Court against the company asking
for an injunction TO prevent the company
using a certain per cent. of the earning of
the Terre Haute & Peoria for other purposes
than according to a contract with the
bondholders. The bill also asked that, in
case the court finds it necessary, a receiver
be appointed for all the Vandalia system OF
railroads.
Judge Woods was in Chicago when the
bill was filed, but he was called here by
wire and yesterday afternoon heard Mr..
Williams's presentation of the case at his
rooms in the Denison House. He entered
a decree ordering the defendant company
to appear on Friday, Nov. Is. and show
cause why an injunction should not issue
as demanded by the compliments. The
matter of a receivership will be an after
consideration.
The compliments in the case are Mark
T. Cox and James A. Blair, of New Jersey.
and James W. Paul, jr., of Philadelphia.
Besides Mr.. Williams, there are engaged
as attorneys for the compliments Strong
& Cadwallader and George w. Wicker
sham, of New York. The bill came in
printed form and was neatly bound. There
are thirty pages of it. with about as many
additional pages Of exhibits.
The suit is entitled, Mark T Cox, James
A. Blair and James w. Paul, jr., against
the Terre Haute & Indianapolis Railroad
Company" The bill sets forth that in
1870 the defendant company acquired pos
ession of the ST. Louis, Vandalia d Terre
Haute Railroad. and that in 1892 it took
charge of the Terre Haute & Peoria Rail-
road, entering into a contract with 1t Tor
ninety-nne years. Prior to this latter con
solidation-in 1SS7-tbe Terre Hauts & Peo>
ria had by deed of trust, conveyed all its
property to the Union Trust Company, or
New York to secure first mortgage gold
coupon bonds to the amount or Sl,SVV'oVO.
due March 1, 1927. with interest at per
cent. In 1892, while the negotiations Ior
consolidation with the Terre Haute q In
dianapolis were pending. the Terre Haute
& Peoria authorized the issue or ponds 10
the amount of s2.5O0.OO0. payable to the
Union Trust Company, for the purpose OF
improving the road and for retiring the
first issue of bonds. The consolidation was
effected in October. 1892, and the bonds
were issued.
CONTRACT WITH VANDALlA.
BY the terms of the contract entered into
between the defendant company and the
of the gross earnings of the Terre Haute
e. Peoria railroad should be devoted TO
the payment of the interest on the Terre
Haute & Peoria bonds. taxes and rentals,
the remainder Of the 80 per cent, II there
should be any, to be paid to the Terre Haute
e. Peoria railroad. The complainants aver
that the interest has not been paid, though
the 80 per cent. of the gross earnings would
have been sufficient to have paid 1t. The
gross earnings since the defendant COM
pany took possession of the Terre Haute
& Peoria have been as follows: For the
thirteen months ending Oct. 81, 1893: sag,
52O33: for the year ending oct. 81, 1884,
s4Ol Ol469: for the year ending Oct. 81, 1873,
$445 4S3; October, 1885, up to sept !, 1880 teS.
timated). 1000; all OF which money II
is alleged, has been appropriated by the
According to the complaint the total
amount due on the interest coupons sept.
255. $50 .and" continues the complaint,
your orators are the owners and holders
OF trust of March l. 1887. and of 81, 41O,o 900 of
said bonds secured by the deed of trust or
Sept. i. 1892, and as such there is due them
the principal sum OF S3o,3.o, toSether with
interest from September, 1886
The bill recites that the defendant com
pany is operating the Terre n rd t q n n.ov
the interest and principal on 81 500, coo of its
bonds; that it is operating the Terre Haute
X
nav the interest and principal on an issue
of first mortgage bonds to the amount Of
$4SO.GOO. 1t is then shown that the Penn
sylva MIA Company owns about half the
stock of the Vandalia. 1t is set forth that
interest to the amount of SCI 600 on bonds
of the St. Louis, Vandalia & Terre Haute
lief of the compliments that it will not be
paid The compartments also aver that
the principal and interest on the mist mort
gage be nds, due Jan. !, 1897, Will MT be paid
when due; that upon this contingency the
obligations of the Terre Haute & Indian
apolis and of the Pittsburg, Cincinnati x
ST Louis will become enforceable: that in
that case the Yerre Haute & Indianapolis
will be unable to comply and a cialm VIII
bursement of its secured proportion.
THE CONCLUDING PRAYER.
The bill of complaint concludes with the
following prayer:
ITO the end. therefore, that you orators
may have that relief which they can only
obtain in a court of equity, they pray that
an account may he taken by and under the
direction and decree of this honorable court,
for the purpose of ascertaininS what the
gross earnings of said Terre Haute x Pc
oria railroad property have been since the
31st day of October. 1885, and what sum de-
PENDANT has received and was appropriated
that should have been applied by defendant
to the payment of interest on said Terre
Haute s; Peoria Eailroad II, bonds Sd, due and
Company. of New York, In New York city
on the first day OF September, 1896, and that
q decree ne ellIeTtu GSdlilSl the utlellUdnt
for the principal sum of said interest. to-
gether with interest thereon from and after |
said first day of September 1885, and de- |
PENDANT be required to pay the same and |
be also required to specifically perform said |
contract of Oct. !, 1852, and be enjoined |
during the pending of this action from |
using or appropTiatinS any of the 80 per !
cent. OF gross earnings OF said Terre Haute |
& Peoria railroads property except in the |
contract of Oct. I, 1852. and also that upon |
the final hearing of this action said de- |
PENDANT be perpetually enjoined from using |
or aporoDriating said 20 per cent. of gross |
earnings, except as in said contract |
specified and that IL necessary to |
the complete enforcement and protection of |
the rights of your orators and other bond |
of the funds received by the defendant |
company arising from the operations of |
the various leased lines operated by it as |
aforesaid to the eGd that the equities of |
the various parties therein ne ascertained |
and marshaled and the prol ortion there |
of applicable under the lease of the said |
Terre Haute & Peoria Railroad Company |
or that i'm case the said Terre Haute & |
Indianapolis Railroad Company be unable |
by reason of its insolvency to comply with |
the orders and DEGREES of this court in this |
cause that receiver he appointed for said |
Terre Haute e. Indianapolis Railroad Com |
lines. and to preserve said lease in so far |
as may be possible in the interest of all /
creditors of the said Terre Haute q In |
dianapolis Railroad Company, according |
to their respective and lawful priorities |
and without undue preference of one cred, |
itor set of creditors over the other. And !
that your orators may have all such
fhav- ar,I tbor of in