The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-08-27
THE MONON LITIGATION
L.. ". a. & G. COMPELLED TO PRO-
TECT ITSELF BY RECEIyERsHIP.
The r. & e n Burden ON d Big
dle-Forefgn Railway Magnatcs-

Samuel Thomas. president OF the Louis
vile. New Albany & Chicago. has made
the following statement to one of the New
York papers: The tactics of the litigants
in the Beattyville bond suit have compelled
the officers of the Monon company TO ask
the protection of the court by the appoint
ment of "A receiver. Attachments were be-
ing served upon its money and its equip
ment in various states. which threatened
TO prevent the operation of the road.
This action is taken in the interest of
the present security holders, and will
maintain the property intact until such
time as a reorganization can be arranged.
Mr.. McDoel. the receiver. has been the
general manager OF the company and is
well fitted TO care for the property. The
present receivership. forced upon the Mo-
non, is an extraordinary example in view
Of the fact that the company has been
~abundantly able to pay all OF its debts and
TO earn the interest upon all OF its obliga-
tons. Its solvency has never been ques-
toned until the judicial decision of Judge
Taft opened the way TO saddle the Aonon
company with the debts of another road.
1t is to-day in better condition physically
than ever before and its capacity for earn
ing money is better. The sole embarrass-
ment of the company arises from the fact
that il has been called upon. not TO pay its
own debts, but to pay the debts of an
other corporation. for which this company
is said TO be liable. The step which has
been taken for a receivership will put an
end to this and all similar causes of an
noyance inherited from past arrangements.
A majority of the mortgage bonds OF the
company are in the hands OF friends OF the
company. and it will be easy to arrange
for a foreclosure which will extlngulsh the
alleged claims In connection with the beat
tyviile suit and will enable the property 10
be restored to those at present interested
in ii. without the sacrifice of any part CT
their existing values.
THE company has only a trifiing amount
of bills payable, which were created for
the purpose of building the indianapolis
terminals and the Lafayette shops, both of
which are vested in separate corporations
and secure the debt in the interest of the
Monon company. Full values exist in the
property to cover the face OF every bond
which the Monon owes. and leave a large
surplus of value and of earning capacity
TO be ultimately made available for the
stockholders. Under these circumstance
there is no occasion for any owners of the
securities TO sacrifice their holding at pres
ent prices. which are far below reor9an-
iZatiOn igures.' ~
The European Railway M~nEnatcs.
Train IL over the Decline division of the
Big Four yesterday brought to the city the
officials of the London q northwestern
road. who are making a tour over thC
American railways. The party consists OF
Fredric Harrison, general manager of the
London & Northwestern. wife and maid
Robert Turnbull. general superintendent
and wife, and c. a. Barttoni, genera
freight and passenger agent of the road
j. @. Van Wrinkle, general superintendent
of the Big Four. accompanied the party
over the Big -Four, the train arriving al
St. Louis at 8 p. m. last evening. This
evening at S:45 the party will leave st
Louis over the Chicago, Burlington 6
Quincy for Denver. and from there con
tinue the trip to San Francisco. The party
travels in the Pullman car Hasiemere. anc
expects to be absent two months, or unit
Oct. 10. During the trip the party vii
travel 1851 miles. and of that mileage
10. 0S1 is on American railways. passins
through portions of twenty-five States anC
Territories while in the United States. anC
through five of the British possessions OF
the return.