Jasper County Democrat, Volume 11, Number 33, Rensselaer, Jasper County, 22 August 1908 — TROUBLE FOR FOR WALSH [ARTICLE]

TROUBLE FOR FOR WALSH

Railways Fail to Pay Their Debts and One Is in a Receiver’s Hands. 7 SOUTHERN INDIANA GOES FIRST Will Probably Be Followed by the Chicago Southern “Pocket’’ Mines Continue at Work. Indianapolis. Aug. 21.—Federal jurisdiction now extends over the Southern Indiana Railway company through the appointment of a receiver in the United States circuit court, at Chicago, for the road which has long been regarded as the best of what are known as the John R. Walsh railroads. On a petition presented by counsel of the First Trust and Savings bank, of Chicago. the representatives of the Chicago Clearing House association, Judge Christian C. Kohlsaat appointed M. J. Carpenter, formerly president of the Chicago and Eastern Illinois Railroad company, receiver of the Southern Indiana Railway company. Walsh's First. Railway Venture. The Southern Indiana road was the first railroad acquired by John R. Walsh in the extending of his banking business from banking lines to a wider financial expansion, and the methods employed to develop the road and finance the other railroad enterprises formed a large part of the trial which preceded the conviction of the aged banker on a charge of misapplying the funds of the Chicago National bank, of which be had I>een president. The receivership which now covers the Southern Indiana road alone will probably be extended to take In the Chicago Southern Railroad company, which was designed to connect the Southern Indiana road with Chicago. There Are 525 Miles of Road. The Southern Indiana road was organized in May. 1897. the name of the road then being the Evrnsvllle and Richmond Railwa.v company, but later the name was changed. The total mileage of the road, together with the Chicago Southern, which it operates. Is 525 milesTTneluding main, branch and Its sidetrack lines. The claim of the First Trust and Savings bank, complainant In the receivership proceedings. amounts to $135,600 oh two promissory notes. Interest on these notes and the notes themselves are past due. and the defendant company admits Its inability to pay. Sympathy at Linton. Linton. Ind.. Aug. 21.—1 n view of the appointment of a receiver for the Walsh railway properties much sympathy is expressed here for Walsh. His •Mends here have little hope he will be able to save the remainder of his property from the hands of creditors. Walsh's mining property in this field is valued at $500,000. and his stone quarries at Bedford are worth an equal amount. There are delinquent taxes and indebtedness on all the property. ind many suit i have been brought against these corporations.