The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-04-08
AIR LINE ORDERED SOLD
w. r. FIsHBACx APPOINTED SPECIAL
MASTER TO SELL THE ROAD.
VIII Be Purchased by Southern Rail-
way Company-Rights of Second
Mortgages Fully Protected.

The argument IN the Louisville, Evans
vile & st. Louis, Consolidated Railway
litigation was continued yesterday in the
Federal Court and occupied the greater
part Of the day. 1t developed during the
argument that ]. p. Morgan G. Co., the
owners of the consolidated mortgage
bonds, had become by purchase the owner
Of first mortgage bonds covering the In
diana line, so that the consolidated and
first mortgage interests yesterday united
in demanding a decree of foreclosure. 1t
was learned that the first mortgage bonds
were purchased at $1.3o on the dollar and
this placed in the hands of the Morgan in
terests about sS.OO0OOO of the securities.
The second mortgage interests represented
by w. II. II. Miller and st. John Boyle, of
Louisville, opposed the entering of a de-
cree of foreclosure unless they were pro-
tected
After long arguments from counsel the
court ordered decree of foreclosure Of all
Of the mortgages except the second mort
gage, and sale of all the properties of the
consolidated companies. To protect the
second mortgage holders the court ordered
the purchasers of the property to pay into
chancery the sum of 100000 to await the
further order of the court respecting the
contested claim as to the holders of the
second mortgage bonds. The court fur
Their ordered that the holders Of the sec
ond mortgage should have the option of
redemption or bidding at the sale of the
property covered by the first mortgage.
The court finally ordered the sale of all
properties and appointed w. =. Fishback
as special master to sell the road The
court also provided the following prices
for the various divisions of the road:
Evansville division $500, 900; Indiana division
(main line) S1,50O.OOO; Evansville and In
diana division combined, $4,000 Camel
ton branch. $4,000; Illinois division, $780,
600; general mortgage bonds, $4,000. He
also provided for the following cash de-
posits to be made by prospective bidders
on the various divisions of the road:
Evansville division, $4,000 or $500, 900 par
value of bonds: Indiana division (main
line) $4,000 or 100000 of bonds; Cannelton
branch, 5000 or $4,000 OF bonds; Illinois
division, $4,000 or 100000 of bonds; bid on
general mortgage 5000 cash deposit or
100000 of general mortgage bonds.
The court further ordered the receiver.
George Il. Jarvis, to pay the interest on
the Evansville division bonds. These
bonds as shown in the decree or order are
worth about $1.20 on the dollar. All ques-
tons presented on exceptions TO the mas
terS report involving about 81 100000 of
property, are reserved for future order.
The Belt Railroad at East st. Louis is not
ordered sold, nor is the line from Belleville
to ST. Louis included I'm the decree. All the
receivers acts, contracts and doings are
approved. The operating contract of the
railroad transfer across the Mississippi
river at st. Louis is confirmed and will be
continued. The decree has not been en-
tered, but will be after being verified in de-
tail. j. p. Morgan & Co., have purchased
the bonds and will bid in the road for the
Southern Railway Company. 1t will be-
tenn. st. John Boyle stated in argument
that the roads earnings had been so
greatly increased to Justify per cent.
dividend on $10,000,000 OF securities. The
Southern Railway Company has been
deavoring to secure the property for more
than a year.