The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-07-27
THE ROCKFORD ROAD IN THE HANDS OF
RECEIVERS.
Judge Ly nds and r. r. Gable Appointed Re-
ceivers.

Learning, on Saturday evening, that the
Rockford railroad was in the hands of Re
%ceivers, a reporter for THE ARGUS called
on President Gable to get the facts in re-
gard to the matter.
1t seems that the suit commenced by
Osterberg, in the name ofthe Union Trust
Co., before Judge Blodgett, in the U. ).
Court, in Chicago, was merely an attempt
to get immediate possession of the road
under pretence of wishing a foreclosure OF
the mortgage, and that Osterberg had
made arrangements with certain parties to
manage the property if he succeeded in
getting a Receiver appointed, and there
is, to say the least, a strong proba-
bility that if he had got possession he
would not have been in a great hurry to
have a final foreclosure. Though his suit
was dismissed, it alarmed the holders
of the floating debt, along the line of the
road, so as to bring down upon the com
pany numerous suits which threatened to
sweep away the whole property, and Mr..
Cable did not think it safe to make further
advances of money for the road while any
portion of the bondholders were threaten
ing instant foreclosure.
In dismissing the Osterberg bill, in Chi
cago, the Court announced that any bond
holder who had not accepted the compro-
mise made some time ago, had the right to
file a bill to foreclose at once, and that the
other bond holders, who had accepted the
compromise, could do so after the lst Of
next August, provided the interest due
last February should not previously be
paid. 1t was therefore evident that there
was to be continued litigation, and that, in
the meantime, the floating debt due to peo-
pie along the line for labor, material, etc,
would ruin the property by suits and exc
c~utiOns.
In this state of affairs Mr.. Samuel NJ,
Nickerson, Of Chicago, the owner of a
number OF bonds on which he had
not assented to the compromise,
employed Judge Lawrence, of Chi
cago, and Hon. Charles Durham, of
Henry county, to prepare and file a bill in
the Henry County Circuit Court at Cam
bridge, in behalf of himself and all the
bondholders Of the class his bonds came
under, for a foreclosure OF the mortgage
and for the appointment OF Receivers to
manage the road in the meantime, and
Mr.. Cable did not deem it advisable to
contest the application for Receivers, so that
the property could be preserved and the
local debts be paid. And the parties Rep
rescnting the bonds in this Henry county
suit being satisfied that the management
of Mr.. Gable was for the benefit of the road,
Mr.. Gable, and at his suggestion, Judge
Lynde, OF this city, were appointed joint
Receivers, and have filed the necessary
bonds aud are in possession.
The road will now probably be contin-
| uDI uuutI tIlC Nduic management u ~
| foreclosure finally takes place. This could
not be done under the Chicago bill for sew
eral reasons, among which may be named
the fact that the foreclosure under that
bill would be void, the proceedings not hay
ing been legally commenced. Another
reason is that by that bill a portion Of the
bondholders sought to get an advantage OF
the others. Another is that that bill was
filed in the interest of persons who
would have ruined the road if
they had the opportunity. Mr..
Body, the man who is sued for taking
$4,000 of the funds of the road, was par
ticularly busy in the Osterberg matter and
wrote letters to people for information to
aid him and Ostcrbcrg in ousting Mr.. Ca
ble-which he did not get, as no facts ex-
list warranting it. 1t is our opinion that
Mr.. Body had best prepare himself to
settle up the swiDdle he perpetrated on
the corporation as the Receivers will not
be very likely to give him any peace until
he does.
c. NJ Osborn, Esqr, appeared at Henry
County Court, for the railroad company,