The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-02-28
LOSS. AI.2G2.6O
Iiiustratins Some OF the Danger. Of Fines-irs
In Wall street.

The Chicago. Danville and Vinccnncs Rail-
road collapsed In 1875. after prccnrlous ex-
istence Of barely two years. Strenuous efforts
were made by both Eastern and Western holders
Of its bonds to avert total bankruptcy hut these
were unavailing. and the road went into the
hands Of arcccivcr Mr.. A. Anderson Of Chicago.
and on the 9TH Of February last the foreclosure
sale was held in Chicago.
At the time of the default OF the road It's d.
rcctory was largely made up Of New Workers..
most of whom held large amounts of its bonds.
Tho National Trust Company Of Broadway held
500, 900 worth Of the bonds. and it was in the
Office OF this institution that the plans for the
purchase Of the road. and its reorganization in
the interest OF bondhcldcrs IRE believed to
have originated. Before the default in the pay
mcnt Of interest the bonds were quoted nj from
So Ia 90 cents on the dollar. but ns soon IA 1t
was seen That the bankruptcy OF the roud was
u certainty, and that tho recovery of even u
small proportion Of the debts due by II was eN.
tremely dubious, many hondholdcrs were glad
to sell M low IA forty ccnts on the dollar
Among the heaviest purchasers in tins tlme 81
panic was Mr. Joseph +. Armonr. of Armour 4
Co.. pork packers. Chicago, He bought bonds
representing s25OoO0, paying 40 cents on the
dollar After his parrhasers e. had been madc NE
was by this time nj the head of a committee APP
! pointed by the hondholdcrs TO buy In and reor-
ganize thc road IMPRESSED Wish TO have Mr..
| clincd. but, ut tho same time. ntimatcd his
| Willingness 10 sell his bonds TO the coalition.
| He wanted 6j cents on the dollar. and us they
were unwilling to pay the price, and were, per-
! haps. confident that they could carry out their
! scheme without his aid. the negotiations were
broken on
Prior to the foreclosure sale in Chicago over
t2,0OO,0OO worth OF the bonds had been dcpa!s-
tied with tho National Trust Company. and MIR.
| Mangum. its President Mr. T. W. shannon. one
| of its trustees AIR. j, NJ. Denson Of Baltimore
| and Mr.. f. W. Huidekoper of Mcadvlle Pa. the
/ committee appointed 10y the bondhodcrs to buy
In the road AZ the foreclosure sale, went to Chi
cHgo on the 1th Of last month.
On the day Of the sale they found a bidder
| persistently bidding against thcm-a bidder
/ who seemed determined to own the road NJ
| whatever cost Uptoa million or SO they held
/ one million four hundred thousand dollars in
| gold they weakened. and asked an Adjournment
" for consultation" The opposing bidder hay
ing consented. the sale was temporarily post
ppncd The New York capitalists had been out
| wttcd.
The opposing bidder wns Mr.. Joseph +. Ar
mOur himself. and 10 the New Workers constcr-
nation they found his bid backed by ut least nine
millions in cash Az n last resort they offered
To- buy Mr. Armours bonds on condition that h.
would cease bidding. Then the sale was re-
Om. Had they purchased Mr.. Armour's bonds
when they were first offered they might hav'
bought the read in for s2ju.OuU Their loss Is
thus rrckoned in Wall street. where the shrt,w,
game OF cuchre played by the Western man has
provoked many "a smile:
Difference between S.SOuu and 81, thnOpo. si,atp0s
on ssjo, 10 worlh OF bonds ..'.........'... $3.50
Total VI 2N2 80