The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-08-21
SUIT IS FILED
TOFORECLOSE
ON ST. CAR CO.
New York Bank Brings
Action in 100000
Mortgage Case.
AID TO REORGANIZATION
Way Now Open to Proceed
for Rehabilitation of
System.

Way for reorganization Of the
indianapolis street railway system
was paved today with the filing of
a suit to foreclose a $4,000, 600 mort
gage on the railway company's
property. D.
The suit, filed in circuit court
Thursday by the Central Hanover
Bank and Trust Company of New
York, is a complaint against the
indianapolis Street Railway Com
pany and more than forty other de-
PENDANTS.
1t seeks to foreclose a mortgage
executed by the Citizens Street
Railway Company on May /. 1893.
securing 100000 of forty-year 5
per cent first mortgage bonds. The
Central Hanover company is trus-
tee for these bonds.
Others Made Defendants
The complaint further makes de-
PENDANTS of all parties having any
interest in the properties of the IN
dianapolis Street Railway Com
pany or the Traction Terminal
Company defendants for the pur-
pose Of having cross complaints filed
for the establishment of all liens
upon all the properties.
The amounts of securities event.
ually to be foreclosed on the prop
erty total S18,181, 900 as follows:
Citizens Street Railway Company,
$4,000,000; Indianapolis Street Rail-
way Company, $4,T90,0OO; Indian
apolis and Traction Terminal Com
rany, $3,206,0oO; Broad Ripple Trac-
ton Company, $285,0O0: Indian
apolis and Traction Terminals
notes, 100000; Indianapolis Street
Railway collateral notes for pur-
chase of bus lines, 100000: class of
unsecured creditors approximating
100000; indianapolis Street Rail
way preferred stock, $4,000 900.
Other Stock Involved
In addition, there is 81 100000 par
value of common stock outstanding
issued by the indianapolis Street
Railway Company and $4,000 Of
substation equipment stock.
Among the defendants are: The
Indiana Trust Company as trus-
tee; George G. Forrey Jr., as re-
ceiver; TradeSmen's National bank
and Trust Company of Philadelphia
as trustee; Broad Ripple Traction
Company; Aetna Trust and Savings
Company as trustee, all interurban
lines entering Indianapolis and a
large number of judgment creditors.
All the Indianapolis Street Rail-
way Company's properties in India
napolis are to be forecloSed, sold
and reorganiZed, according to VIII
liam L. Taylor, Indianapolis attorn-
ey, who filed the suit. Other at
torneys in the suit are Larkin,
Rathbone and Perry of New York.
Reorganization plans provide for
the expenditure of approximately
100000 to rehabilitate the system.
Committees Are Named
Each class of stockholders already
have organized protective commit
tees and these have agreed on the
reorganization plan.
If the properties are foreclosed,
sold and bought, as agree to under
the reorganization plan, the Indian
apoliS Traction and Terminal prop
erty on Illinois street will pass I'M
der a separate organization of its
own.
All of the other street railway
properties in the city will be re-
organized under a separate organi-
cation.
The terminal property now is
covered by separate mortgage by
a separate corporation.
AS a part Of the street railway
property, all Of the bus lines OPP
Grated by the street railway COM
pany likewise will be sold and in
cluded in the reorganization plan.
Interurbans Are Included
All interurban lines entering the
city are made party defendants to
the complaint filed, in order that
their rights may be determined
through the litigation.
The complaint recites that the
Citizens company mortgage being
foreciosed is the first and prior lien
on all the property Of the Indian
apolis Street Railway Company. Il
charges that default was made in
the payment of interest due on May
l, 1880, Nov. l, 1880. and May /,
1881.
A receiver also is asked in the
complaint and the impounding OF
the income of the railway company
for the benefit Of the bondholders.