The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-05-26

pal and interest due on the mortgage of
June 10, 1868, and also that of Oct %,
1858; to ascertain the character and value
of the property of the road, and what por-
ton was embraced in each mortgage; to
find what amount of each series of bonds
were Cancelled under the contracts of July
and October, 1872, and how much inter
est had been paid on the Cancelled bonds.
The master was also to ascertain the
amount due to the trustee and the at
torneys for their services.
THE MASTERS REPORT.
Mr.. Bishop then gave notice to the
parties, and took the testimony of W. III
Ferry, j, P. Whitehead, NJ. D. Merrill, H.
H. Boody, and w. c. Cloudy for the
trustee. and Henry Loosely, j. n. Conger,
and j. h. Smith for the intervening bond
holders The result of his examination
was embodied in yoluminous report of
thirty-one legal cap pages. where the his
tory and character of the company and its
condition are minutely set out The
master reports that when the first mort
gage was made no part of the line was
completed, but it was intended 10 cover
the road from Rockford to point on the
Mississippi River opposite Burlington,
Iowa, including therein the whole of the
first and second grand divisions and part
of the third This mortgage was to be for
$5,000,000, but, when $4,000 of bonds
had been issued, the company concluded
to build the whole of the line through the
third grand division, and for this purpose
made new mortgage for $9,000,000, in
Guiding therein the first mortgage for So
100000, and issuing 1000 new bonds.
THE ROAD, AND IT'S VALUE.
The length of the road actually con-
structed is 275 10 miles, small part be-
ing on a right of way belonging to another
company. The road also operates several
short sections of line by lease, belonging to
other companies. The road owns nearly
all the depOts on its line of track; also, a
car shop, blacksmith shop, machine shop
and round house at Beardstown, and three
engine houses. 1t has also IA first and
second class coaches, Is way cars, bag
gage and mail cars. 39l box freight cars,
80 stock cars, 90 fiat cars, 317 coal cars,
and 30 locomotives. The real estate, be
sides that occupied as a right OF way, CON
sists of some mining land, the whole be-
ing valued at $27 ,200 and the total value
of the property, including the equipments
and franchises, is estimated at $1,0O0,O00
In the masters opinion, however, it must
be sold in one parcel to realize the
most from it, OF the whole line the first
mortgage covers 120 $40 miles of track, ,ol
less than one-half, but includes fve-sixths
of the real estate and a small amount OF
right of way on which no track has beer
laid.
SALE OF THE BONDS.
Up to Oct. %, 1868, there were sold by
Fl. Ii. B0ody, OF the $5,C00,000 of bonds
secured by the first mortgage and mum
bered from to 5000, 273 bonds for 81 ,O0C
each.
On Oct. %, 1868, a second mortgage
was executed to secure bonds for $4,000,
900, these being numbered from 5,OOl t.
] 5000, inclusive, and this second mort
: gage was also for the further security 0
the first issue Of bonds from | To 5000 in
elusive.
From Oct. 90, 1868, to Aug, 4, 1862 80
bonds all of first issue except |, numbere,
|, S,50l, were sold by III. H. Boody, tn
. treasurer.
On March Is, 1869, a contract was mad
between Morritz Bulge, OF Frankfort-o or
the Main, Germany, for the negotiatio
100000 of bonds. Under this and SUP
+ Elemental contract there were delivered
e Bulge, Shift 4 Co, the New York CORE
il spondents of Morritz Bulge, up to Angus
q 6,1S69, all but 80 of the first series of th
bonds.
u The first delivery of the bonds of th
= second series was August Is, 1869, whe
:, 700 bonds, numbered from 5O0l to $40
+ were delivered to Bulge, Shift Il Co. o
. August 10, 300 more were delivered I
It them. Then they got the remaining 35 {
). the first series. The remainder OF tE
d bonds not sold under the contracts wit
d Morritz Bulge were disposed of by BoOd,
j. the treasurer, $4,000 of which were Ell
ls ployed by him in securing influence In NJ
lie gotiating the general sale of the bond
of BOOdy swcars that the bonds of the tN
n series were negotiated and sold as fir
of mortgage bonds without reference to the
ly numbers of series. OF them 800, nun
c. bered from COOL to 1900, inclusive, we,
" retained by Boody. and representati'
bonds for $500 and 800 were issued al
sold in their place. Some of these ha'
been exchanged for the larger ones. The
are l,399, 900 of these smaller bonds ou
the holders of which are entitled at al
time to exchange.
Default having been made in the inte
est due August l, 1871, and Feb. l, 1877
y provisional and supplemental contrac
were enlered into July and Oct 9, lS7
=, by which the holders Of bonds aggregati
}. $S,O24.30O consented to the provision
'rt scaling down of their bonds and coupons
- become due after August, 1872, to OF
i halt their face value. They also receiv
u certificates of preferred stock for the 9th
|, half, and to fund their over due coupe
at four per cent. The various defau
which have since taken place, howev
have upset all these arrangements, and t
holders of the scaled bonds and fund
- coupons are now entitled to stand in tn
j. original position as creditors to their
r amount.
= FIRST MORTGAGE BONDS.
r Of the first series. from to 5000, tn
D are $4,999,OO0 outstanding, Of which
33S,000 were scaled down, aad $66l,(
2 were not. There is now due on all t
first issue, including principal and intert
$6,2S6,0692S. This includes $3l $50 b
E to by Max and Henry Bulge, Jacob Sc
ee- re- and Geo. Lehman which are disputed.
ect- SECOND MORTGAGE BONDS.
Ius- Of the second series, from 5,0Ol to
900, all were issued. OF these $3,6S6,
, iwere scaled down, and 1913, 100 were l