The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-09

given. nave the nOnOr report that,
in compliance with an act approved Jan.
q. 1897, being House bill No. S4S. L caused
notice of such bill and a demand for the
making and furnishing of the statement
required to be served upon said Terre
Haute & Richmond Railway Company,
and said Terre Haute & Indianapolis Rail-
road Company, by delivering a copy there
the Terre Haute d Richmond Railroad
Company, he being the only surviving di;
rector within the State of Indiana, and
there being no officer. agent, or employe
OF said road found in said State after dill
shereof To eorg Pe B. the sec
rotary of the Terre Haute a. indianapolis
railroad Company the president of said
road being absent from said State, and
said harrington being the highest officer
by publishing a copy of said notice for
three days successfully in The Indianapo-
lis News, newspaper of general circua-
ton, published in the city of Indianapolis,
the publications being on the 9th, 18th
and 18th days of January. and also by
publishing copy of said notice in the
Daily Express of Terre Haute, the same
being newspaper of general circulation
copy. of the notices so served upon said
parties and so published is attached here
to, designated as Exhibit A
lon the 2Sth day of January, 1897. / also
caused notice to be served on Volney T.
Malott, receiver of the Terre Hautes & In
dianapoiiS road appointed by the Circuit
the district of Indiana, in the cause OF
Mark 7: Cox ct al. vs.. the Indianapolis &
Terre Haute Railroad Company, No. 1895
chancery having first obtained leave Of the
United States Circuit Court to make such
service on the receiver To do so / was
compelled to send my deputy to Chicago
nle herewith as part of this report
copy of the notice so served upon Mr. Ma
lott. and designate the same as Exhibit b.
In making such service paid the trav
cling expenses of my deputy. amounting to
S2426. The charges for the publication in
and in fha TaSr NeM 70 Soge
total expense of such service being s5362.
Shortly after o'clock Saturday evening,
Feb. g. 1897. L received from the Terre
Haute & Indianapolis Railroad Company.
by James McCrea, its president. a state
ment copy of which is herewith submitted.
1 also received from him a statement in
tabular form of the details by years of the
above statement, copy of which submit
herewith.
the Terrc Haute & Richmond Railroad
Company. except as contained in the above
and no report whatever from the receiver
of the road.
1T appears from McCrea's statements
they are taken wholly from the public an
nual reports of the companies, and are
made wholly upon information. 1t is ex-
planned that he had not had access to the
books and papers. as they are in the pos
session of the receiver
In the limited time that has elapsed
since these statements have come into my
hands | have had no opportunity to make
any analysis of them or the figures that
they profess to give. And presume in any
event the proper course would be that they
should be printed for the information of
the joint committee for its examination, re-
port and recommendation to the General
Assembly.
NO FAITH IN THE FIGURES.
1T may not be improper for me TO add,
however. that it has not been my under
standing of the complaint against the road
that it had so made its published report
as to show a plain and distinct right in the
State or its school fund, but rather that it
had so made its books and reports as to
conceal from the public and the General
Assembly the true condition of its receipts
and expenditures in order to prevent any
legislation affecting or any enforcement of
the rights of the State and under such cir
cumstances such rights could not well be
determined by simple examination of the
statement made upon hearsay evidence-in
a second degree-by an officer who had not
been a participant in the management and
who has no access even TO the original
books and papers of the road. because of
the fact that the road is in the hands of
receiver.
| have been able to give to the statement.
| ii appears from it: (a) That the expense of
| construction ceased in 1856, with total ex-
| penditure of 81. ,45O. tb) That 1T was not
| until 1866 that the net earnings from the
operation of the road cqualed the total or
| iginal cost of the construction with interest
| thereon at the rate of 10 per cent per an
num- viz. net receipts. $4.037. 443.37 con-
| structiOn expenses, with interest. S3.92S-
| 400 SO: so that the receipts were then Sl0g =
| rs in excess of the construction. and 10
| per cent. per annum. tc) That the total
| stock outstanding is claimed TO be 81 .9sS 49,
| but of this amount 1858 800 represents the
stock dividends declared in 1856 and 1864 so
| that for the purpose of the dividend de-
| scribed in Section % of it's charter only
IN q "a ed str ~,
] to receive the ID per cent. dividends per an
| mum. before payment of the excess to the
| treasurer of state for the use of common
| schools. From 1867 to the time in 1873 when
| the road accepted the general railroad laws
| of the State, the net receipts for each year
| over and above the 10 per cent dividend
| large sum, wholly Independent of what
| might appear upon the recasting Of the ac-
| count and an elimination of all the improper
| charges and credits if such should be found
| From the fact that Immediately follow
ing these two stock dividends the net re-
! ceipts appeared to have fallen OFF quite
| perceptibly, IL Is not unreasonable TO infer
! that these stock dividends were declared
and the earnings reported in order TO post.
| pone or prevent the State from regulating
| the tolls as TO produce a revenue for the
| school fund.
| Il submit the statements with the recon.
mendation that they be printed for the in
| formation Of the General Assembly and re-
ferred TO the joint committee for the pur.
| pose of examination. and such further ac.
| ton as il may recommend.
President McCrea < statement. referred tC
by the attorney general as Exhibit c." wa:
| made under oath at Pittsburg. Pa Feb
| 3. The affidavit recites that the state.
ment shows the amount of expendi
, lures and receipts, profits and disposition
of profits of the T. III. * l. road from Jan
| 26 1s47. TO Jan. IL, 1873. IL is also said
| that the statement was made up from pub
! lished reports. as the affiant did not hav,
| access to the original books of the com
pany. now in the hands of receiver APP.
pointed by the Federal Court. Following /:
| the statement:
Statement made uD from annual report.
| of the Terre Haute * indianapolis Rail
| read Company. as published. showing tn,
| amount of expenditures in construction and
operation of that comDany's railroad from
| the 26th day of January 1s47 10 the l7tl
| day of January. 1913. inclusive. the profit,
| from operation. with details of the expendi
lures for construction and oDSra ton. ans
| the Iii SDosition made of the profits durins
the period named above. forty-eight days
from Dec. l, 1872 to Jan. Il. 1873. being es
timated:
]. Expenditures in construction
and operation ..........-........Sl 81 933. sos. :
| . Receipts from transportation
and investments ............... I5343. 1893
g. Profits from operation ......... 5253 1Sg .
Add amount of expenditures
for construction which was
charged TO operating eX-
penses. and for which amount a
stock dividend was declared In
1854 ........................... 37s.7OOO
Total profits ............,.......... 5.bzs.s~.-
4 Details of expenditures
n. CONSTRUCTION ....-.-..-.,-.-... 1.NiS.,iofl
b. Operation ..--.................. 10.0ss, 95i Z
Total expenditures .....-..-... 81. sss. sos 5