The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-02
CASE INVOLVED 100000
JUDGE BAKERS DECISION IN THE
COLLETT ESTATE SUIT.
Victory for General HarrisOn's Client
Central Trust Company Fails to
Collect Its Notes.

Judge Baker, of the Federal Court vas
terday rendered a decision involving some
thing over 100000. in the case of the Central
Trust Company, of New York, against the
Evansville & Terre Haute, the Peoria, De-
catur & Eastern and the Josephus Collett
estate, of Terre Haute. The decision is upon
demurrer made by the plaintiff to answers
by the defendants, but the effect of it is
that the defendants do not have to pay
two notes, one for $2OO O00 held by the Cen
trail Trust Company, and one for 100000
held by the Continental National Bank, of
New York. The decision is a triumph for
General Harrison, who was leading counsel
for the Collett estate. the only one of the
defendants now solvent and able to pay the
debt
The suit grew out of railroad deal that
formed part of the Mackey system of
financiering. Some years ago Austin Corbin
and his associates built a piece of railroad
in Illinois and called it the Chicago & Ohio
River Railroad. Later this road was bought
by Josephus Collett, 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
the close relations between Mackey and Col
lett and brought pressure to bear by threat
ening Mackey that if this road were ex-
tended the Chicago & Eastern Illinois would
cancel its traffic agreement with the Evans
vile & Terre Haute and built a competing
line from Terre Haute to Evansville
MR.. COLLETT sUNLOADED.
The upshot of the matter was that Mr..
Collett unloaded his property the E. &
T. H., then big and prosperous corpora
ton, for $500, 0O0 The money was raised by
two loans. one for 100000 advanced by the
Continental National Bank, of New York
and the other for 100000, advanced by the
Central Trust Company, of New York. The
notes for these loans were made by the
Peoria Decatur & Evansville Company and
and Evansville g. Terre Haute Company
jointly and Endorsed by Collett and 10. o.
Hopkins. The notes were made II. .5eptem-
Der, 1892, and shortly afterwards Collett
died In February, 1893, the notes were re-
newed Collects executors signing for the
Collett estate Later Mackey went to pieces
and his roads went into the hands of re-
ceivers The bank and trust company sued
all the makers and indorsers of the notes
to recover the principal and interest
The case was argued before Judge Baker
June 10. The bank and trust company were
represented by Addison G. Harris, ASSOC
ciate counsel with Senator Fairbanks in the
case. The Collett estate was represented by
General Harrison, Ferdinand Winter and
John NJ. Beasley. of Terre Haute. and the
Evansville e. Terre Haute by Ilgehart &
Taylor, of Evansville. The p, d. & E. and
Mr. Hopkins had not been ruled TO answer
and were not in court.
Mr.. Harris argued that the companies
were empowered to make these notes, that
the contract for the purchase of this other
road did not destroy competition. did not
raise rates and waG in no wise contrary to
public policy. The debt was a Just one for
full consi6era ton. and all the slgners We're
responsible for their payment. Mr.. Ilgehart:
for the Evansville & Terre Haute, argued
that the banks understood thoroughly the
purpose Of the loan and knew that 1t 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 and General Harrison spoke for the
Collett estate. Their defense followed only
in part that of the railroad company They
mainta ined further that Collett got no con-
sideration for his signature inasmuch as ne
was a seller not a purchaser. or the e. &
O. r. Railroad Company. and they set up
further claim that the executors of his es-
tate had no power to blnd the estate ny
signing these notes.