The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-06-11
ONE OF MACK.EY DEALS
PROMINENT ATTORNEYS IN ARGU-
MENT ON A $500, 900 NOTE SUIT.
Arose Out of the Purchase of a Branch
by the f. 81 II. III. System to Pre-
vent Competition.

Judge Baker and a number of prominent
lawyers are engaged in the Federal Court
in trying to stratghten out the affairs of
a railroad deal that formed part of the
Mackey system Of f1nanciering. Some years
a6o Austin Corbin and his associates built
a piece of railroad in Illinois and called
it the Chicago & Ohio River Railroad. Lat
er this road was bought by Josephus Col
let of Terre Haute, who associated with
him E. o. Hopkins, then freight agent of
the Evansville & Terre Haute, who was
to be manager of the road. 1t was their
intention to build it on to Chicago and this
alarmed the Chicago & Eastern Illinois peo-
pie. They understood the close relations be-
tween Mackey and Collet and brought
pressure to bear by threatening Mackey
that if this road were extended the Chicago
e. Eastern Illinois would cancel its traffic
agreement with the Evansville & Terre
Haute and build competing line from
Terre Haute to Evansville.
The upshot Of the matter was that Mr..
Colet unloaded his property on the E. &
IT, H., then big and prosperous corpora
ton, for $1,000 The money was raised by
two loans, one for 100000, advanced by the
Continental National Bank, of New York,
and the other for 5000 advanced by the
Central Trust Company, of New York. The
notes for these loans were made by the
Peoria, Decatur & Evansville Company and
the Evansville & Terre Haute Company
jointly and Endorsed by Collet and e. o.
Hopkins The notes were made in Septem-
Der, 1892, and shortly afterwards Collet
died. In February, 1898, the notes were re-
pewed, Collects executors signing for the
Collet estate Later Mackey went to pieces
and his roads went into the hands of re-
ceivers. The bank ana trust company sued
all the makers and indorsers OF the notes
to recover the principal and interest.
In the argument yesterday the bank ana
trust company were represented by Ad-
olson G. Harris, associate counsel with Sen
ator Fairbanks in the case. The Collet es-
tate was represented by General Harrison,
Ferdinand Winter and John M. Beasley, of
Terre Haute, and the EVansville q Terre
Haute by Ilgehart & Taylor, OF Evansville.
The P, d. & Z. and Mr.. Hopkins had not
been ruled to answer and were not in court
The morning was occupied by Mr.. Harris,
who argued that the companies were en-
powered to make these notes. that the con-
tract for the purchase of this other road
did not destroy competition did not raise
rates and was in no wise contrary to pub
lie policy. The debt was just one for full
consideration, and all the signers We're re-
sponsible for their payment. In the after
noon Mr. Ilgehart argued for the Evansville
& Terre Haute. He argued that the banks
understood thoroughly the purpose OF the
loan and knew that it was for the purpose
of destroying competition and therefore in
contravention to both the common law and
the interstate-commerce law The railroad
company never handled the money, but 1t
was applied by the banks themselves to the
purchase of the securities OF the chicago
& Ohio River road Mr.. Winter talked
yesterday and General Harrison will speak
for the Collet estate this morning. Their de-
Tense follows only in part that of the rail-
road company. They will maintain further
that Collet, got no consideration for his
signature, inasmuchs as he was a seller,
not a purchaser, of the c. & o. r. Railroad
Company and they set up further claim
that the executors of his estate had no pow