The Montgomery advertiser., 1908-08-21
rniled to Nfeet Tnterest.

Chicago, Aug. 2o-FederaI jurisdic- tf0n now extends over ths Southern Indiana Railway Company through the appointment of a receiver in the United States Circuit Court for the road. which was long regarded as the R Walsh railroads.
 On a petition presented by counsel for the. First Trust and Savings Bank Of Chicago, the report of the Chicago Clearing House Association, Judge Christian c, Kol1isaat. late last night appointed M J. Carpenter, formerly President of the Chicago and Eastern illinois Railroad Company. receiver Of the Southern Indiana Railway. Com
 Failute to meet the Interest on the bonded indebtedness of the road was the approximate, cause Of the petition for court action X
 The receiverships. which now covers the southern Indiana Road alone. wilI probably be extended to take, fin, the Chicago Southern Railway Company. which was designed to connect the Southern Indiana Road with Chicago. A motion asking for the extension of the receivership has. been presented to the Federal Court and will be heard bfore Judge Kohlsaat tomorrow.
 The Southern Indiana troubles recall to those who have watched tho Walshi enterprises the qpectacular closing o1 the Chicago National Bank in Deceua- ber. 1905, after "a long session of the directors Of the Chicago CleeSing f1cuse who had been notified by National Bank Examiner Bosworth that excessive loans had been made from the bank of which Mir. Walsh was President to the railroads in which he was largely in-
 Millions Were Loaned.
 The aggregate of the loans amounted into the fmiIlions. The three railroads principally named in the court pro- cesdings which followed were the Southern Indiana, the Illinois South ern anu the wisconsin and Michigan Railway. companies. Through the roads and the feeders proposed for them it was festified at the trial of Mfr. Walsh for ;nisapplication that he designed to become a power in theJ railroad wrld. Tn the adjustment which followed the long days of investigation proceeding a number of notes of the Southern h. diana Road was given to the Clearing House Association and on these the petition for appointment of receiver is based.
 According to the Last oficial state ment the company had assets of $ss,' 3sO. 4eO. included in which was one item of SI2,ss4, ,s32 credited as cost of cons sfruction of the road. The equipment wass placed a valuation of $s.593,77l-s
 The following liabilities were shown:
 Common stock s1l. 100000; first mort gage bonds &T,52s.0o0; general. mort eage bonds of May 1. 1908, e2.S1O,000; eouipment notes $ss6.0t1; bills payable xs45' sO7: contingent bills payable $26,- sss. due Southern Indiana Coal com pany S34, ,2S5: due I. R. Walsh and com nanv SIS, 900; current accounts $i5s,s62; hond interest S56,5o0; dividends re- cefved S30; Chicago Southern, contin- 1ant account S223,124; earnings July i to February 2s. $l,os4.o5l; profit and loss ss9,12s.
 Attorneys James E. Hutchins, orvid D. Jameson. Indianapolis. and Lassing Rosenthal. appeared with E. K. Boisot hsfnre united states Circuit Judge KohIsaat at a late hour last night on behalf of the First Trust and Savings hank the representative of the Asso- ciated Clearing House banks. of Cht- caRo to apply for a receiver for the southern Indiana Railway company.
 Three similar bills were filed by the First Trust, and Savings bank, one in the Northern district of Illinois at Chi- cago one in the Eastern district at Danviile. Illinois. and one in the dis trict of Indiana at Indianapolis. James Rosenthal appeared on behalf of the railroad companies. Judge Kohlsaat entered orders in all the cases
 This reeeivershlp, it is said. does not affect in any unfaRorable way John R. walsh, of the firm Of J. R. walsh and company. The receiver ship was made necessary by the in dustrial depression which has exist ed or was asked for the purpose of conserving the credit and resources of fba cnn1nany. -.+