New-York tribune., 1896-08-25
RECEITER FOR THE WOAON.'
vICE-PREsIDENT MDOEL APPOINTED BY
JUDGE WOODS
No RESISTANCE MADE TO THE APPLICATION TO

THE COTRT-THE ROADS INDEBTEDNESS
1nd,s,ancrs Aux 2i-william McDoel. Of Chi
cago was appolnted this afternoon by Judge Woods
receiver OF the entire "Monon" system his bonds
were placed at sir"o
sult was fled In the United States Circuit Court
to-day asking that receiver De appointed ioi 'ne
,,,,e,,lia N-Y-Ananv and Chicago Railroad. bet
ter known a. the "Monon' system. Rumors had
been nying thick aud fas, railroad circles during
The LAST week 20 the eject that the "Monon was
hing pressed and was liable 70 20 into receiver
ship bat the reports were denied by the Mohoh
officials a. rapidly they boboed mp 4his Hool"-
~ Iusre Woods came down from Chicago. and his
auuearance was the signal for fresh outbreak o.
the rumors These were confirmed "nen sho'u!
after noon receiyership suit was filed 10y John /
Mills e. OF Nw-York. b. his attorney harr!
Crawford. Of Chicago.
Af,er stating that the company operates 81 iIeso
road between Chicago ard Louisville. The complain,
sss ma, he cornpany mas lease for So years OF
The Chicago and Western Indiana under when Il
alleges the "Monon" owes $4,000 The oiner IN
- b,elness Il the road is alleged 20 be S'p"" IN
per CEN bonds ured by first mortgage on 'he
main linz. &3,o..r IN per cent bones s'-u'en -
ar. mortgage On the Western branch: s4,lJa'' IN
-a- con, consolidated bonds secured by mort
gaee upon the entire system &""vp oi per ~
pyii, - =. . r- ~ artTinr,ent bonds securel
kegsI ~. n sse and lssj ,he Board Of Directors
s,i-fo-, sn,borI,v from the stockholders and con
- - isw vlsced upon each OF s. 80" per cent
srs. mortgage bonds Endorsements signed by the
iafendart 70 guarantee 10 the bordhoiiers me pay
ment OF the principal and interest 81 s-'n uOi- -
have fsllen short ssl.,y month a. compared win
former ysars that dsnser9es ss H a.
ability % meet - obligations ana that mess ,nT
- h-oyrhf s,tacbInen;s issued the rights Of bond
holders imperilled and The earning ability OF the
Judse Woods. without a hearing signed an order
appointing william McDoel. Of chicago. Iece.frt.
Ment M Na' sssinst he road An answer was led 6y
FIELD foT iAe company HSRs Hi, o. .e mi on s
mercy Of The court
The plsc!rg os ,h- Louisville New-Aibany and
Chicago Railroad Company in tire hands OF a re-
csver was 10 surprise in railroad circles where x
Was known that the step was the result of litigation
in connection with the Beattysvle indorsed bonds.
TIE receiver " c. NcDosi i vice-presiden' ana
general manager y he road
The following statement = made hy General
Samuel Thomas president q the Louisville New
Albany and Chicago RAILWAY Company. with r.
gard 10 the receiyership
The tactics OF the liz gants in me b=attyViii7
bond suit have compelled ine officers OF the AoAon
company TO ask the protection OK the court oy 'hs
snpointraenr Of receiver. Attachments were D.
ing served upon i,s money and its equipment IN
various S,a-es which threatened 20 prevent ihe
,-a-atior of the road. This action = taken IN me
interest II The present security -ho-eerS' anu "''
maintain fhe property intact Nn'" N'~H IN
,-,,s-izs.,or car - arranged Nj McDoeL ne
-s..tv.- has been ,he' general manager OF TIE
.o-,-snv and * vel a,f-d care for th@ prop
st. TIE r-as4r- rec-ivership forced upon the
.,fonor = an extraordinary example IT, vie" OF
- ,,c, tns- The railway company has away
,aa- ahrirsar,ly able 20 pay all OF its DEUS anu
.. ss-- rhe ir-eres. ip,n all % - ooiigatohs'
r.s s,r-a-c, has never been questioned hh'h ''T
,,,si.t., decision of Judge Taft opened ne way %
saAsl. the Monon company with the a~o'7 ol
ero.hs- road Z, = TO-DAY IN bette conal'o"
-Aysi-alv than ever before. and is capacity io'
ss,rin- ronev Is better The sole emuaf'aSS'i'r-'
a.. ne cou,pauv arises from the tact Nat '' '''
been called upon not % pay its own "-''s 80
90 nav the debts % another corporation io' "''' "
.A,s oor,rarv e said 20 be liable The step "n''-
h.s been taken OF a recevershp WI pu' an an n II
,o this and all similar causes o. iii.o' -.
hs-,,aa fror, pas mana gements. \ haJoilS y
-, rrc--g4ca bonds % the company 1ir ~ -
te-4s ~ friends u the company. arc II WI W" -
Easy arrange FOR tore9IoSlrS Tor with ,he
ra--t,-,iiie siit and will enable the prop-Iy ~
a.. rssror@d 70 those al present lItrtrs-T1 n. -
,,ih,ll- th- sacrifice o. any part OF iNNi4 eN'sis
''.TSe cor,ranv has only triAing amount OF oi.ss
r.xshle which we're created for the p-ItoSe u
triliing th. Indianapolis terminals ana 'iS 10
,ave,,e shops both OF which are tes'el "a -
,e-esi OF the Monon' company u. ta.,- % 80
s- - r,~onsrfv % cover the face or every OOhH
uhich he Monon owes. and iraNe arg 81
plus OF value and ot earning capdctS 20 De -
5ar these circumstances. there = no $3.50. ~.
.~, owra-s q tr- securities 20 sacrl1'r t.rH
boidirgs A. present prices. which are ia- oeio"
r-organizat ton ngureS