The Indianapolis journal., 1899-12-22


ANALYSIS OF THE REPORT.
The net earnings include $4,000 received
from the one-ffth interest in the Indian
apolis Union Railway Company, and s45,64O
received as two per cent dividends on the
preferred stock of the st. Louis, Vandalia
& Terre Haute. The last-named sum was
used to partly pay the rent due the st. L.,
v. & T. H. up to the beginning of the re-
ceivership, leaving a balance of 349.15
still due.
At the close of the last fiscal year there
was shown an apparent profit to the re-
ceiver of the lessee of s., 5,S04S1 from oper-
ating the T. III. & L. Railroad, after pay
ing the rental due the lessor company ur-
der the lease. The T. Fl. & l.. Railroad was
operated for the lessee only one month
during the fiscal year covered by this re-
port. All settlements of the receivers out
standing obligations were included in that
month, and resulted in absorbing the profit
named, and In some additional loss be-
sides The receiver is reimbursed from the
rental fund for the actual loss incurred by
him after the payment of rental, but as the
s., ,S04 81 has been heretofore shown as
profit to the lessee. it is shown as a charge
against the net income of the fiscal year,
although not actually accruing from the
operations for the year The loss shown as
having accrued from operating the 1. & l..
NJ Railway arose. in part, from including
in accounts OF the receivership all settle
ments made in closing the accounts. There
is in the rental fund the sum of S34. .0S0S5.
which, Ii is expected. may be made avail
able to reimburse the receiver of the lessee
company in part for the losses incurred in
operation; but until that question is def
nitely determined the result of operations
for four months of the fiscal year, and the
settlements Of outstanding obligations are
shown as a charge against the income of
| the lessee company for the fiscal year.
During the fiscal year the receiver out
| Of the net income, reduced the ante-receiv-
ership obligations as follows:
Accounts payable ............. 1927, ,74s Is
Settlement of sundry old claims
and interest on T. III. & L. Rail-
road Company's notes ............. 17,025. 90
Payment on balance of rent due
| st. L.. V. & I. II. Railroad Com
| pany up to Nov IA. 1896. 96.......... 45650. 90
Total ....................$1 $3.50 42i 05
| In addition to the interest paid on the
coInpany's notes, there had accrued. Oct.
| 81 1899, as interest on the notes outstanding
/ aggregating $14S.000 the sum of S13 46S. .75 of
/ which S13,191 was paid in November but
the transaction not being made in the fiscal
year is not in the figures above given
| At the beginning of the receivership there
| were notes aggregating S215522 outstanding
| given by the company in payment for loco
| motives purchased. These notes in sums OF
| 5000, matured monthly. and bore interest
| at the rate of per cent. per annum Moth
| ing has been paid on them. Up to Oct 81
| 1899, the amount of principal and interest
| which there is claim on the co-lessee of
the ST. L.. V. & T. Fl. Railroad as its pro-
| portion of the cost of locomotives for that
| road, for SI9,99466 leaving the net liability
| of the L. II. & /. Railroad Company on the
past due notes $l22. .4Ss.2 20. There had also
| accrued. to Oct 81, 1899. interest to the
amount OF $6.2O2.65 on the notes not then
due
INTEREST PAYMENTS.
No decision having been reached in the
litigation over the payment of the interest
on the Terre Haute & Peoria bonds. the
balance of rental was held in the special
| fund. At the close of the fiscal year seven
coupons. each Of $3.50. had been de-
faulted. which. with interest to Oct 81. 1899.
amounted to si29 275: the balance of rental
was s25o.s11-5f. leaving a deficit of rental
OF Sl1S. 1915 Since the close OF the fiscal
year decision of the Supreme Court of
Illinois makes ii necessary for the receiver
TO pay TO the Peoria & Pekin Union Rail-
way Company the difference between $I3OO
and $4,000 per annum since 1892 for rental
| OF terminals at Peoria. and thereafter pay
at the higher rate. This involves the pay
ment OF ST. % up TO Nov 80 1899
The interest on the T. III. & l. Railroad
Company's bonds has been paid as 1t ma
tured. the rental for leased lines set aside
and all obligations met except the payment
| OF the companys notes and the interest
on the Terre Haute & Peoria bonds. The
unpaid Internationally vouchers aggre-
gate $14.9So. nearly all OF which is for part
OF an old claim not yet settled.
During the fiscal year there was charged
In the expenses OF operating the T. II. q