The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-28
BONDHOLDERS UNEASY
THE FINANCIAL STANDING OF THE
It. III. & i. CRITICISED.
Another Decrease in Movement of
Dropped to 15c per 100 Pounds.

For so many years were the securities
and stock of the Terre Haute & Indianap
oils Railroad Company looked upon with
| favor and considered gilt edged that to note
any adverse criticism seems unexpected
| Local stockholders, and. in fact, Eastern
stockholders were considerably disturbed
when the company two years ago began
to pass dividends after paying from to
10 per cent. dividends for nearly forty years.
and now that the interest some of the
bonds which the Terre Haute 81 Indianap-
| oils has guaranteed is in default still great
er surprise is expressed. The current issue
of the United States Investor goes con-
siderably into detail concerning the finances
of the Terre Haute & indianapolis Railroad
Company. It says:
MANY Connecticut banks are at present
deeply interested in the affairs of the Terre
Haute q Indianapolis railroad, particularly
in the outcome of its three recent defaults.
First, its defaults in the July interest on
the Terre Haute & Logansport bonds and
later in the September coupons on the
Terre Haute & Peoria and Indiana q Lake
Michigan bonds. They are interested lest
these troubles may affect the value of their
own securities, involving the Terre Haute
& Indianapolis along with the Pennsylva-
mia, which controls it, IN unpleasant and
banks to invest in Terre Haute & Indianap>
oils bonds originally was that the road was
paying dividends and was mainly controlled
by the Pennsylvania Company, who own a
majority of its stock. They felt quite sure
the Pennsylvania would not allow the
guarantee of the Terre Haute & Indianapo-
lis to default, but in this they We're mis-
TAKEN were the minority holders of the
stock of the Terre Haute & Peoria, who
looked for regular dividends, but VINO since
February, 1884, have received none. 1t is
said to purchase control of the Terre Haute
d indianapolis road the Pennsylvania paid
as high as $50 for stock now quoted below
so and have since regretted their bargain.
1t is limited. too, that to recoup their loss
the Pennsylvania propose to squeeze the
holders of the bonds of the Terre Haute &
Peoria Terre F1aute q Logansport and In
diana d Lake Michigan roads by inducing
them to accept lower rate bond else
assume control of their own property.
Bondholders, of course, are, some of them
OF the opinion that the Pennsylvania would
not allow its holdings In these roads to be
wiped out through foreclosure, but Wall
street can see how Pennsylvani could
make good any loss from this source. Thus
far the Pennsylvania has made no offers of
settlement with the Terre Haute & Peoria
bondholderS nor with the bondholderS of
the Indiana q Lake Michigan, but in the
meantime holders of these securities are
uniting for mutual protection Among the
holders of the bonds of the Terre Haute &
Peoria is the Phoenix Insurance Company
of Hartford, Conn. which owns s25 600 also
$oO00O of the bonds of the Terre Haute &
Logansport.
THE Penn Mutual Life Insurance Com
pany also owns 900 Terre Haute & Lo-
gansport skies and the Aetna Life Insur-
The Aetna also owns $25.375 of the Terre
Haute & Peoria bonds.'n
The Investor closes the article by naming
tWenty-seVen savings and loan institutions
or the State of Connecticut that hold 81 163-
900 of these bonds which the Terre Haute
* Inalanapolis gave or guaranteed the in
tereSt thereon