The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-04-07
BONDHOLDERS DISAGREE
PETITION ASKING FOR THE SALE OF
THE L., r.. a ST. l.. CONSOLIDATED.
Several Prominent Lawyers Appear
Before Judge Woods, of the
United States Court.

An application was made to Judge Woods,
of the United States Court. yesterday after
noon. by the general bondhoiders and the
holders OF the first-mortgage bonds for
decree OF foreclosure and sale OF the Louis
vile. Evansville & st. Louis Consolidated
Railroad. The effort TO secure an order
of sale was resisted by the second-mort-
gage bondholders and by the holders of
the Evansville & Rockport branch. On this
property there are nine different mort
cages, covering different sections of the
road. The holders of the first-mortgage
bonds are represented by Judge A. p.
Humphrey. OF Louisville. The second-mort
gage bondholders are represented by w. III.
III. Miller. of Indianapolis, and St. John
Boyle. of Louisville. The mortgage bond
holders Of the Evansville division are rep
resented by Alexander Gilchrist and st.
John Boyle. Mr.. Bullitt. OF Louisville.
represents the Tell City branch, and the
consolidated mortgage is represented by
James Burn and Mr.. Morrowitz. both of
New York. Other lawyers present are Mr..
Steele and William Lynn Stetson. of New
York, representing ]. p. Morgan & Co,
the proposed purchasers of the property;
Maj Bluford Wilson, OF Springfield. ILL.,,
representing the general-mortgage bond
holders, and Messrs. Igelhart & Taylor.
representing the railroad company.
The bonded Indebtedness of the railroad
amounts to SO, 900. The first-mortgage
bonds amount to s2000,000. the second
mortgage bonds to $670, 900, the consolidated
mortgage bonds to 50, 7s7.5OO. and the gen.
eral-mortgage bonds to 81 400. $50 In Janu-
airy. 1894, Thomas Barrett, of Memphis. and
James III. Wilson. of Delaware. made an
for the road. Barrett owned s.. 000. 900 worth
OF the mortgage bonds, calling for per
cent, and 5000 shares of the common
stock. Wilson owned $50 shares OF the
common stock. z. o. Hopkins and James
III. Wilson were appointed receivers, but
they resigned in April, 1896, and George Il.
Jarvis was appointed by Judge Woods in
their place. Under the receivership of Mr..
Jarvis the road has very greatly increased
in it's earning and value. and has been
practically rebuilt. The road extends from
Louisville. KY. to East st. Louis. ILL.,, with
a belt railroad at East st. Louis and an
other at New Albany. Branches are also
run to Evansville, Rockport and Camel
ton in Indiana, besides other branches in
Illinois. When Mr.. Jarvis became receiver
of the road the first-mortgage bonds were
selling at about 40 cents and the CONSOLE
dated-mortgage bonds at about % cents.
The first-mortgage bonds are now selling
from $1.25 to $1.30, and the consolidated at
about 70 cents. Ex-Attorney General Mil
Ter vigorously opposed the sale OF the ROAD
at this time, for the reason that IL meant
to freeze OUT the second-mortgage bond
holders and for the further reason that no
decree should be entered covering the sec
ond-mortgage bonds until the court should
determine whether the 100000 of second
mortgage bonds were outstanding or
whether there were but 100000 OF second
mortgage bonds outstanding. He contended
that 81. 900 of the second-mortgage bonds
were Cancelled when consolidated bonds
were issued in their place. The point was
raised that no notice had been given of a
proposed decree, and the further hearing
of the case was postponed until this morn