The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-05-18
"A GREAT CASE SETTLED
LITIGATION AGAINST THE CoLLETT
ESTATE COMPROMISED.
1t Involved $500, Divorce
Demands-County superintend-
ent Ousted.

An important case, involving $500, 0O0 that
has been in the United States Court in this
city for two or three years, was settled by
the parties in interest in New York yester
day. BY the terms of the settlement the
Chicago & Ohio River Railroad is sold to
the c., H. & d. and the suit of the Central
Trust Company and Continental National
Bank of New York against the estate of
Josephus Collett, of Terre Haute, will be
dismissed. The case came to trial here last
summer and resulted IN a preliminary vic
tory for General Harrison, who conducted
the defense for the estate
The litigation which was brought to an
end by the compromise settlement in New
York yesterday by which the estate of the
late Josephus Collett was freed from the
obligation created by his Endorsement of
notes issued by d. j. Maekey as president
and individually at the time he was at the
head of the Mackey system of
roads, was begun soon after Mr. Collects
death several years ago. Mr.. Collett and
Mr.. Mackey owned the Chicago & Ohio
River road, which extended from Olney to
Sidell, III. Mr.. Mackey was having trouble
with the Chicago & Eastern Illinois, which
was the northern connection of his Evans
vile d Terre Haute road, and he started to
build from Sidell into Chicago. BY a connec-
ton with the Peoria, Decatur & Evansville
on the south the Chicago & OHIO River road
would give him a through route from Chi
cago to- Evansville At about this time he
was negotiating for the Mobile & Ohio
road, which would give him system from
the lakes to the gulf The Chicago & East
ern Illinois held that the proposed Chicago
extension would be a Violation of the traffic
hn haH
Immediately began surveying for a parallel
road from Terre Haute to. Evansville. This
alarmed the holders of Evansville e. Terre
Haute securities and they put the pressure
on Mr.. Mackey to make peace with the
Chicago & Eastern Illinois, in doing which
1t became necessary for him to cause the
purchase OF the Chicago q Ohio River road
py the Mackey system. 1t bought by
the Peoria, Decatur e. EVANSVILLE which
latter road was without funds and actually
lnsolvent, making Unnecessary to borrow
the money with which, to buy the road
amount needed on the purchase price of
$4,000 the Central Trust Company Of New
YORK, loaned 100000 and the Continental
National Bank, of the same city 100000.
The p, d. 81 e. executed notes which
Messrs. Collect. Mackey and Baldwin in
doTsed; All of the ifdividual indorsers ex-
cept MI Collett became inSolvent and after
his death the holders of the notes brought
SUIT IN the United States Court at Indian
St'OAlS dSditlSL his estate Inc ATTORNEYS for
the estate set up that, executors of an es-
tate could not bind the estate by a new
cohtract, as was done when the executors
IN this case signed new notes In another
answer 1t was held that the purchase of
the chicago d. Ohio River road was against
publlc policy, inaSmlich as one road was
buying another road for the purpose of pre-
venting competition 1t was contended that
the transaction was in direct violation of
the Sherman antitrust law Judge Baker
held that these answers were good Then
began the negotiations for the compromise
settlement of the suit