Northwestern Traction Co tries to lay tracks - Montgomery InGenWeb Project

FIGHT OVERTHE STREETS CITY OF CRAWFORDSVILLE AND TRACTION WORKMEN COLLIDE. Northwestern Company Tries to Lay Its Lines and City Interferes Bricks Hurled and Water Thrown. A suit which, it is said, grows out of a transaction of the Fort Wayne & Southwestern Traction Company In financing that road, and which was said to be objectionable to the promoter of the merger of the Union Traction Company of Indiana and the Indianapolis Northern Traction Company, and, therefore, prevented the absorption of the Fort Wayne line by the other two when the recent merger was announced, has been filed In the United States District Court. The suit Is that of the National Bank of North America, in New York, against the Fort Wayne, A Southwestern Traction Company and the State-street Trust Company of Boston. The complainants ask that their claim on a note for J100.000, discounted to them by the traction company, be made a lien on the defendant's property and bonds, and that the traction company and the trustee of Its mortgage, the 8tate-stroet Trust Company of Boston, be enjoined from the Issue and distribution of bonds of the company until the loan, now a preferred credit of the traction company, be secured with bonds amounting to the indebtedness. The complaint filed states that in May. 1908. the Fort Wayne A Southwestern Traction Company discounted a note for $100,000 to the New York bank, bearing 5 per cent interest and due Nov. 21, 1902. One stipulation of the transaction was that bonds of a par value of $100,000 Issued by the traction company were to be given the banking firm as security for the loan. The complainant states that the bonds were never delivered, and that when the note matured, on Nov. 20, it was renewed, conditioned upon the future delivery of the securities. The next date of maturity, in May of the present ar. found that the bonds had not yet been delivered, and the banking company, stating that It feared another issue of bonds by the traction company and a distribution of them to the neglect of a preferred creditor, asks that its claim on the company be made a lien on any existing bonds, and that the officers of the Fort Wayne & Southwestern and the trustee of the mortgages of the road, the State-street Trust Company of Boston, be enjoined from disposing of any bonds until a satisfaction of their claim.

FIGHT OVER THE STREETS. Crawfordsville and North-western Traction Company in Collision. Special to the Indianapolis Journal. CRAWFORDSVILLE, Ind., May 29.-The contest over the claimed rights to use the streets of this city for an electric line between the Northwestern Traction line and the Consolidated Company came to a focus to-day. About three months ago the City Council granted a franchise to the Northwestern line, building a line between here and Lebanon, and at the same meeting notice was served by a councilman who had voted for the franchise so he could do so, of his purpose to move a reconsideration. At the same meeting the road filed its acceptance of the franchise and a certified $2.500 check to fulfill its contract. Then at an adjourned meeting the reconsideration of the franchise was moved and held up, but was subsequently voted down. In the meantime the consolidated line had secured a modified franchise, guaranteeing the city an income from the passenger brought into the city, and the city granted to it the exclusive rights of the streets, requiring all other traction lines to come Into the city over the consolidated lines. The Northwestern people said that they would never do this, and that as the city had granted them the use of the streets and had accepted their bond it could not be forfeited by any action to reconsider without the company's consent, which would not be given. The Northwestern people have been sending iron, ties, etc. to this city, but have been keeping rather quiet as to their intentions, aid would say not a word except that they would come into the city. The City Council two weeks ago ordered their certified check returned but this has not been done and if It had been done they say they would have refused to accept it. This morning the Townsend-Reed people of the Northwestern line had the teams all ready, loaded with iron, ties, tools, etc. and standing Just outside the city. Mr. Harding, of Indianapolis, their attorn, v, went to the city clerk and asked for a permit to begin digging up the streets. The clerk refused to issue it. But this did not deter the company's representatives. The teams drove into the city and the rails, ties, etc. were unloaded from the courthouse corner to the Monon railroad, about five squares. The workmen began to dig up the paved street and all preparations were made to put down the track and rails as fast as possible. Then the city came In for an inning. At first the two former were arrested, but the work proceeded. Then the bright idea struck some one to run out the fire wagon and throw water on the men picking up the streets. This was done and under the direction of Finley Mount, city attorney, the workmen were drenched with water and forced to run. Then the workmen began throwing bricks at the firemen and the firemen returned the compliment. Bricks, spikes and picks were hurled back and forth until the police interfered. The foreman of the railway gang seised a pick and stuck it through the hose, which killed the force of the water from the nozzle. One resident took the part of the firemen. A workman Jumped on him but after a brief fight they were separated. Realizing that the trouble was likely to become serious the firemen withdrew and the men returned to work. The police arrested about seventy-five persons, marching them up to the mayor's office. where they were charged with unlawfully taking up the paved street without a permit. Every man was furnished ball by the American Surety Company of Lebanon, whose officers were here for that purpose. The Consolidated people have filed injunction proceedings to restrain the Northwestern people from laying their track within the city by declaring their alleged franchise void and the city will sue for damages. The men who had water thrown on them will sue the city for damages, as they claim this constituted an assault on them. The Consolidated people have filed an agreement with the city to pay all expenses resulting from the attempt of the Northwestern line to use the street.

COURTS WILL SETTLE IT. W. S. Reed, secretary, and W. N. Harding, attorney for the Indianapolis V Northwestern Traction Company, returned from Crawfordsville last night after their strenuous experience trying to seize the street In that city for the traction line. Both laughed about their experience. Mr. Reed said "It was merely an incident of the business." Mr. Harding said it was a very important Incident because It gave them the standing in law they desired. "We have made an effort to proceed and were stopped." said he. Mr. Harding said litigation would surely result. Mr. Reed said the company had a legal right to the street It entered and would maintain that right without compromise. Ha said the teams were loaded at the Vandalia freight depot and marched Into the city to the poi. t where work begun. Mr. Reed laughed when he admitted that this point "happened" to be In front of A. F. Ramsey's bank. Ramsey is the head man of the Consolidated Traction Company, which is trying to keep the Indianapolis & Northwestern out Mr. Harding was not arrested. He says the workmen distributed track for about half a mile and begun digging the brick street, when the hose wagon came dashing down the street. Water was turned on the workmen, who returned this assault with their picks, with which they punctured the hose and made it ineffective. Many of them were then arrested by the police and special deputies. Mr. Harding says public sympathy was with the Northwestern, and hundreds refused to -serve as special deputies when they were being gathered from the streets. Mr. Harding said the City Council of Crawfordsville passed an ordinance on Feb. 24 giving the Northwestern rights in streets to be granted by resolution. Mayor Byron Russell signed the ordinance and the company gave the bonds required by it. On March 9 the Council passed a resolution giving the company certain streets under the agreement that the company would deposit a certified check for MJM that it would carry out the contract. The company immediately paid the check to the city treasurer. He accepted it in writing. Last week the company applied to the city clerk for a permit to enter the streets, but this was refused. At the meeting where this resolution was passed giving this street one councilman who voted for it gave notice of a motion to reconsider, and at a subsequent meeting it was reconsidered. The city had accepted the check before reconsideration, however. Mr. Harding said the attempt of the company yesterday was a legal step. The Indianapolis! & Northwestern has filed mortgages in Marion. Boone, Montgomery, Clinton and Tippecanoe counties against its property to secure the bond issue of $3.000.000 authorized four months ago, when the company was financed by Eastern capitalists. The Knickerbocker Trust Company of New York is trustee for the mortgage bondholders. A Stockholders Meeting. The directors of the Union Traction company have issued a call for a stockholders meeting in Indianapolis on June 9. Secretary J. A. Van Osdol said yesterday that a complete new issue of stock would be made through the registrar who would issue seventeen shares of the new stock for every ten shares of the old stock.