New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-05-04

THE PEORIA, DECATUR AND EVANS
VILE FORECLOSURE CASE.
ATTITUDE OF THE DISSENTING SECURITY
DERS-ALLEGATIONS INVOLVING
THE CENTRAL TRUST COMPANY
Mr. JOLINES REPLY

Serious allegations involving the Central Trust
Company are made in a statement given out yes
terday at meeting of directors of the Peoria
Decatur and Evansville Railway Company for
the information of the stockholders of that cor
poration. which has been in the hands OF re-
ceiver since January. 1894 The statement is as
follows:
To the Stockholders of the Peoria Decatur and
Evansvile Railway Company:
rbe otleI Statement Is here9S submitted rsgardns
causts which have led UP to the same.
company. by alleging the death Of one Of the
mortgage nr trustees, then and low living obtained
Court for the Southern District Illinois, appoint
RECEIVERS Of the road Mir Huston resigned and
the yice-president aforesaid continued and now
The The receivers defauIted the second mortgages
petition by the Central Trust Company and WIZ
iam im A Heiman (the dead trUstee) fled, pray
road Decree of foreclosure was obtained on the
place. -'''' 'U' "' S"'e N'S ever 'aAeH
,da. In the month Of February 1899 several stock
closure FOR lack of jurisdiction in the This
ceiver were equal 10 ibe r os Ce d i th S fr
~ iHe largest earnings the road ever showed de-
the net earnings of the road having been used in
protectins inc r. p1rinanent instead OF
me central Trust Company. under the first
TaSes faS and although the principal is not due until
decree a
Inc road was sold March s 1900 for s.. $4,000
Company of New-York. which trust company was
b s is now trustee for the bondhoders under both
,t both OF these proceedings being contested by
tne independent second mortgage bondholders and
stockholders, and should unquestionabIy be passed
Upon 6y higher courts before final decision detri-
mental eh TO your stock Is allowed to stand.
i, me r6ad earned inward Of S907 ooo last year and
fiscal year, beginning January + 1890 The receivar
Iested under oath that the road always has and Is
and at the present rate OF earnings and expendi-
Lures lures VIII snow a handsome surplus over fixed
These are facts which every stockholder has a
nation of the records file in court and the re-
short, but any stockholder Of record who wishes
Iurther ton have it by addressing Her
and Evansville RAILWAY Go@pans GI SnS fDSoT DFeaa
Building. No Broad-st, New-York City.
MR. JOLINEs EXPLANATION.
Adrian H Joline was seen last night and said:
This statement is full of the grossest misrepre-
agent Of clique Of petty stock jobbeTs. Who are
trying to make ittle money out of stock selling
concerning the receivership of the road back in
whom represent IL is true that an allegation
ssd made & that one 9t the ne NOR noFgage gas trustees
all the time But Mr.; Heiman is of no I'M
than is Christopher Columbus The road defauIted
on its bonds three years in succession. and that
have sustained the boRdholders in their efforts TO
This week Judge Baker in Indianapolis decided
IN favor Of The bTndholde[s in an action Of which
blocked at any time by the people who are instru;
be easy for me 10 go ahead and close everything
up and take absolute possession of the road az
once instead of waiting until the first OF July II it
were deemed necessary to do so: DO not care 70
the case as ii would be time thrown away ire
courts have sustained the bondholders from the
beginning.
It was announced a week or so ago that an
ba os
Judge Allen of the United States Circuit Court
for the Southern District of Illinois. confirming
the foreclosure sale OF a part of the Peoria.
Decatur and Evansville to Mr. Joline as the
representative of the First Mortgage Bondhold-
ers Committee, Judge Aliens decision having
been made subject to objection and exceptions
from the second mortgage bondholders and the
shareholders.
APPEAL To BE ARGUED SOON
That appeal will be argued next month in
Chicago. before the United States Circuit Court
of Appeals for the With Circuit and reorgani-
cation proceedings Will be delayed until that
tribunal has passed upon the merits of the case
A brief has been filed by counsel for the dis
senting security holders. setting forth in detail
the history of the litigation from the outset
The mortgages are three in number and OF two
classes: A first mortgage OF 81 PSI 600 on the
Peoria division, first mortgage of S1.4TO.OO0
on the Evansville division. and second mort
gage of 81 OSS 600
II is alleged in the brief referred to above.
which relates to the Peoria division fist mort
gage foreclosure, that the original bill in behalf
of the railroad company had been filed by Mr.
Mackey, the president. without authority; that
that bill falsely alleged that William A Heilrnan
a citizen of Indiana and a necessary party was
dead; that il suppressed the fact that the COM
plainant was a consolidated corporation of ILL
nois and Indiana. merely saying that 1t was an
Illinois corporation; that the original bill was a
device to give a Federal court Jurisdiction OF the
foreclosure Of the second mortgage but by a
supplemental bill Heilman was alleged to be
living and was made party that a cross bill
for the foreclosure was then instituted by the
Central Trust Company and Heilman. its CO.
trustee: and that the trust company and He'll
prosecuted TO Judgment a foreclosure decree
OF the second mortgage. but did nothing under
it except to secure allowance OF $4,000 TO
themselves and counsel Since the entry OF this
decree on March 5. 1897. it is further alleged all
surplus earnings have been applied by the re-
oeiver to the permanent betterment OF the road
way and structures. the rolling stock being al
lowed depreciate with the result that in
stead OF meeting the interest on the first mort
cages 1t accrued. money justly applicable TO
that purpose has been devoted at the instance
with the consent Of the said Central Trust
Company. the vast improvement of the
security
In order TO use up the money earned by the
railroad company" the brief goes on 10 saw.
"and TO perpetuate the default. and thus bring
about a sale of the road in foreclosure the
trustee OF said mortgages has permitted the ap-
plication of said interest moneys 10 be expended
in unnecessarily rebuilding bridges along the line
and in unnecessarily ballasting said road with
gra its who