The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-09-20
MONON'S ANNUAL REPORT
STATEMENTS THAT WILL BE SUB
MITTED TO THE DIRECTORS.
I'm Grain Rates, While Those
ON Packing House Products Are
Acknowledgement Notes.

ending June 30 will be submitted to the
stockholders at their annual meeting to be
held to-day in this city. The statement
shows the company to be operating 537 miles
OF main line. twenty-eight miles being used
under contract and 500 miles owned by the
company. The gross earnings of the road
for the year were $3,501 ,121.01; operating ex-
penses, $2,354,95042, including taxes; net
earnings. 81. lag. 170.59: total surplus, 1914, 747.7S,
against a surplus of $50, 129.2 6 in the year
ending June 30, 1885. There were purchased
during the year 2,623 tons OF 75-lb-per-yard
steel rail at a cost Of s4s.276.19. During the
year ss.62 miles of track were ballasted with
gravel and cinders at a cost of s4, 1859.
There were 40 miles of new siding and
extensions laid during the year. and 455
miles of old sidings taken UP, making a net
increase during the year OF 2S miles New
joint interlocking plant has been placed at
Lafayette Junction at crossing with c., c.,
c. & st. L. and L. E. & w. Railways.
Forty-two thousand three hundred and
fifty-three dollars and forty-four cents was
expended for improvements in bridges and
culverts during the year. Three new en-
gines were purchased at a cost of s34, ZOO.
Two hundred and fifty new fiat cars and
fifty new stock cars were purchased at a
Gus " <lOS, 1JJ.CJ. L<46hl luAAoACG oAA0 u
seven cars were equipped with automatic
couplers and air brakes The reduction in
grades between State Line and Monon have
been completed, and as a result Of this ana
the purchase of heavier equipment they
have been able to increase tonnage per train
from 230.o7 in 1898 to 1854 in the present
year, an increase OF II per cent. over 1898.
and OF Is per cent. over 1897. Average ton
mage per loaded car was 14-s1, against 144s
ins ph have inc yesr; i sSi.d s7glS and nndig the train
mileage has decreased about 10 per cent,
representing a corresponding reduction IN
various operating accounts in conducting
year amounted to 1851, ~. Oh, being the
largest in the history Of the company and
exceeding those of the previous year by
$177, 49, ". while there was a decrease in
operating expenses of s.. S09.5S, and an in
crease in taxes of sS.752.2 (of which 6.S25.6 81
was for revenue tax stamps), making an in
crease in net earnings OF N7S, 507. 10.
The Indiana Stone Railroad, extending
from Clear Creek to Harrodsburg, on the
main line, a distance of about ten miles,
constructed under contract with this COM
pany. authorized by the stockholders at their
annual meeting. September, 1898. is now
operated by This company under lease. The
maximum grade of this cutoff is thirty feet,
while the maximum grade of the main line
The new line will enable us to increase our
tonnage per train between Bedford and
Bloomington about no per cent New stone
4oaAt - ONAh OPChCo dAOh NLto ltACs
which will materially increase our earnings
on this class of traffic. All of the capital
stock and bonds of the Indiana Stone Rail-
road Company are owned by this company.
In commenting on the litigation the COM
pany. has been subjected to the past year,
President MeDoel says: In the year 1885
the Louisville. New Albany & Chicago
Railway Company was under great financial
embarrassment. Its fixed charges. including
the rentals, amounted in that year to about
x99o. 900. and the amount of interest upon its
foating debts. secured by collaterals essen
more, making an aggregate annual charge
OF upwards OF 81, 100000. There was also an
imperative demand for betterments and
credit sufficient to enable IL to procure the
same. The net earnings of the company
were not sufficient TO meet and discharge
the liked charges and the interest upon its
unsecured debt.
In this condition of financial embarrass-
for something more than 81. 00o. 600 from the
holders or certain bonds issued in 1889 by
the KiHhpond: NiehoIasville Irvine 8
TO build and operate a railroad in Kentucky.
IT was represented that the payment of a
large part of these bonds had been guarans
cage Railway Company in 1889. The truth
was that the purported guaranty was made
Albany & Chicago board, holding cnly a
nominal amount of its stock, and that this
action OF the board was in violation Of the
express provisions of the statute law under
which the company was Incorporated, pro-
nipitlng guarantees without the petition of
q majority of the stockholders, stating the
facts and showing the benefits to accrue to
the company. In this case the required ac-
ton was not taken. On the contrary, the
knowledge of the stockholders. Nbut without
any consideration therefor. OF such bonds.
circulation. and it was represented that
more than $4,000 had been purchased in
good faith and for value.
Litigation over the validity of such MIR.
ported guaranty ensued and continued from
1Ss to 1896 when the validity or the guar
anty was affirmed by the United States Cir
cult Court OF Appeals. Immediate demand
for payment upon such bonds was precipI-
tated In a period of extreme financial de-
could not meet its fixed charges and the
interest upon its unsecured debt. BY way of
the New Albany Company, the holders of
some or the guaranteed bonds instituted
suits in attachment and punishment for
earnings and trafic balances of the com
pany at Louisville. KY. and like proceed
ngs were threatened in the city OF Chicago
On Aug. "a, 1886, Mr.. John T.. Mills. 1r.. a
general creditor of the company TO the
holding as collateral security a large
amount OF the junior bonds, brought his suit
IN the United States Circuit Court for the
District OF Indiana. thereby alleging the in
solvency Of the New Albany Company and
tnereupon procured the appointment of a
ascst h. OF al the railroads and property
AFTER. the company having necessarily failed
10 pay the interest on its bonds maturing
IN october and November. 1896. foreclosure
SUITS Were brought by the mortgage trus-
tees, the Farmers Loan and Trust COMPANY
and the Central Trust Company of New
York, and proceedings taken which resulted
IN a decree OF foreclosure and sale of the
property OF the New Albany Company.
After entry OF the foreclosure decree by
way OF intervention In that suit. a holder
OF some OF the guaranteed bonds charged
that the foreclosure and sale was collusiye
and sought TO vecate the decree of foreclos-
ure 10 postpone the sale. The matter COM
Ing on 70 be heard. the motion was denied
BY the Circuit Court An appeal was taken
ana the proceedings and decree We're af-
nrmed by the United States Circuit Court OF
Appeals Afterwards the case was removed
by certforarf to the United States Supreme
Court. where on May q. 1899. IL was held
that the Intervention had been filed in dine
time; that IL presented an issue which TIE
court SHOULD have tried and determined. and
nat IA refusing SO to hear and determine