New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-11-14
RECEIVER FOR TIE VANDALIA
ADMISSION BY THE. COMPANY THAT 1T IS
~. ~ s.. INSOLVENT.
voLNEY T. MALOTT NAMED BY THE COURT-A
RECENT ACQUISITION BY THE PENN

voLNEY T. MAIorr NAMED BY THE CoURT-A
RECENT ACQUISITION BY THE PENN
sYLvANIA SYSTEM.
Indianapolis, Nov. 13-Judge Woods Of the United
States Circuit Court this evening appointed
ceiver for the Terre Haute and Indianapolis Rail-
way Company. Familiarity known the vandalia
Line. ma ming VoIney T. Maott president OF the In
diana National Bank. receiver The receiver
was appointed upon the suit of Mark T. Cox. James
A. Blair and James w. Paul. jr.. against the com
rapy and the ground for the receiversAtp was the
Admission OF the company In court that.t is nso
vent The Vandalia has been known.as one Of the
most prosperous railroads in the country, and un-
I'll year ago, when 1t passed into the control Of
the Pennsylvania Company, which purchased a
majority of its stock II met it's dividends and all
charges with the utmost promptness. The plain
lifts In the suit we're represented by John G. Will
Jams. formerly general manager of The Vandalia
SYSTEM: George w. Wiekersham of New-York
Samuel Dickinson. OF Philadelphia. and Mr. Col
den, Of st. Louis. The defendant company was
represented by s. O. Pickens who is also attorney
for the Pennsylvania Company.
The bill says further that In 1870 the defendant
company acquired possession of the ST. Louis. Van
dala and Terre Haute Railroad and that in 1892 1t
took charge of the Terre Haute and Peoria Rail-
road entering into contract with ii for ninety
years. Prior to this latter consolidation-in 1857
the Terre Haute and Peoria had. by deed OF trust.
conveyed all its property TO the Union Trust Com
pany Of New-York to secure first mortgage gold
coupon bonds TO the amount Of s1soo,0o0 due March
J. 1927. with interest at per cent. In 1892. while
the negotiations for consolidation with the Terre
Haute and Indianapolis pending. the Terre
Haute and Peoria authorized the issue of bonds to
the amount Of 81 800 600 payable to the Union Trust
Company. for the purpose of improving the road
and for retiring the first issue of bonds. The con-
solidation effected In October. lss2, ana the
bonds were issued.
By the terms of the contract entered into between
the defendant company and the bondhoders it was
agreed that 80 per cent OF the gross earnings OF the
erre Haue and % on S e 1e oe
and Peoria bonds. taxes and rentals the remainder
to the the Terre Hauie and Peoria Railroad The
plainants that the interest has not been paid
be see s TO o. have pad
earnings since the defendant company took posses,
s s1Ss the ie''s "au's anu 0'a NAVE %
on 69 for the year ending October 81 1895 s445 4s3
October. 1885, up to September 1 1895 ESTIMATED
Appropriated by the defendant.
According to the comgan the total ;.a AMOUNT mount due
remains unpaid. is $3.50. land continues the com
81 e of said bonds secured BY the deed Of trust
Of March l. 1885, and Of 81 10000 Of said 0 bonds Sc
eurd BY the dsS Of the peps Of
sose,h sner With interest from September 1896
The bill recites that the uelenudnt company u
operating the Terre Haue and Logansport Railroad
And has agreed TO pay the interest and principal or
n 800 600 OF its bonds that 1t is operating the Terr'
Haute and Indianapolis Railroad and has agreed (
nav the interest and principal on an issue of frs
mortgage bonds to the amount Of $4,000 II is ther
shown that the Pennsylvania company owns abou
half the stock of the Vandaa. II Is set forth tha
interest 10 the amount Of s91 600 bonds OF the ST
Louis vandalia and Terre Haute VIII fa:l due or
ant that IL will not be paid. The compliments als'
aver THAT the principal and interest on the frs
mortgage bonds due January l. 1884, viii not be pal,
when due: that upon this contingency the obgation
of the Terre Haue and indianapolis and OF the Pitts
burg Cincinnati and ST. Louis will become enforce
able: that In that the Terre Haute and Indian
apolIs Will be unable TO comply and a claim will b.
created against the defendant for reimbursement o
its secured proportion"