The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-11-08
THE ERIE RAILWAY.
Decree of Sale of the Road Under
Mortgage Foreclosure.
ORDER OF JUDGE DONOHUE.
Rise and Fall Of Grea. Franchise
Overgrown Indebtedness

There was commenced on June 10 1879, as iuiy TO-
ported at the time In the HERALD, iorec'oau'e SUI
against the Erie Railway Company, the ihih'a".
effect OF which was the appointments Oh mr. nusn'
Jewett receiver OF the company Such sur Wa
brought bv the Farmers Loan and Trust Company
brustee Of the mortgages, the piaihlih ~ n'S '"'
being represented by Messrs. Turner Lee ""u
Mcclure the railroad company by Messrs shipman'
BARLOW Larooue and Macfarland ana the various
other parties defendant IN the suit by their respsoe
counsel After the fling OF the comp'uh' no''eo "
fhe pendency OF the action, with the na''eS VI a.
the parties thereto the object OF suon "s0"'
q description OF the property IN eac" oouA''
containing property affected thereby Inc aa'e Q. '"'
mortgage in question and the times and places OF re-
sording the same also died in the county cefA
,ms in This c,tv and with the OF all the coun
HOS containing property covered by the mortgage In
Der last the summons and complaint wero
amended by making new parties defendants, "ncn
complaint as thus amended was filed IN the once u
lhe Clerk of tho city aud county oil New iorH on 'he
a5th of September The Eric Railway company put
In AN answer admitting the truth Of the allegations
mado in the amended and supplemental complaint
simar answers also put IN by most OF the other
n,r,ies defendant From time the Erie Rail-
way Company has created IN the way OF mortgages
sarous hens upon lis property.
BONDS BONDS, BONDS.
When Gould and Fisk had the management OF the
road with the OF consolidating all the indebted
uess OF the road they issued on september !, io'o
ghat are known as "Frst consolidated bonds" TO the
amount OF SIG $685. 900 gold, which sum there was
aue Tor interest November l, 1871 s2573,2i5, goia
Those bonds we're secured by mortgage. On Feb
ruary L. lS74 another mortgage was delivered 10 Inc
Farmers Loan aud Trust Company as trustee 70 So
nare the payment of what is known as 'Secono con-
soldaied bonds such bonds aggregaiing $40 0oo 600
md being payable IN gold on January 10, lSoa oh
these bonds there still remained due ana UNPAID
interest on November l, 1877, $l,S9S,l2 So
On the I'd OF March following there was another
GssIe OF bonds by the company amounting 70
SIS 900 00O their last bonds beng payable IN gold
on March > 1894 On these bonds there remained
nae and unpaid interest Oh November !, ls'1
g. 3l2 so on these latter two issues = IS alleged
lhut there is now DUE including principal and interest,"
d2g $50 300 20 The prese action Is for foreclosure
oil the mortgage under winch were issued what are
acsgnated above Second consolidated bonds" TO
yccile all the minor mortgages Tor the payment OF
which the property OF tho Erie Railway Company is
held aple is unnecessary. as tney Vrtuapy are us
posed OF in the present action
Upon uiidavits setting at great length the fore
going facts with minute specification OF the conditions
IF the various mortgages Judge Donohue, yesterday,
gran ted decree sale OF the road under the iorecos
sre the mortgage OF February 1874 Tue following
as the decrcc:-
virtue the power authority therein vested, doth
adjuGge and decree that all ana singular tne inoF
Scna and mixed, mentioned II the comelnnt IN this
gagged intended to oc TO the planti The Farmeis
s Han a asa All la ay q ts59as 1874 ncaans 4
yuar that part OF the mogased pem,ses .anense, ana
,.e' 0a is sS. sssn a ad
.ns DC sold u paoe saton oy sn
nor y, law OF the city York, appointed
referee Tor that purpose aness previous 70 'aa 'e The
plaintiff the said Farmers Loan ana rust aompany o
amounts herein found actually due aud payable Tor
S.eafsa BY the SAID mortgage pian.i. dated Feo
suar 1874 with interest thereon from Tue dae hereof
lsted and the u proceedings tor sale up to tho
1t is further ordered, adjudgcd and decreed that said
. psGeFi ana STATES u Kew ssy
aud rsensyana respectively and also nenaa g. n
legations payab accounts and evidences
ycsiver, part aaa parcel o. the mortSaged prem
s a .ers ss sod in ons SUBJECT 10
Iii liens and eneulnbrances tnereou. At tho
Erie Railway Company plaintiffs February 4, 1874,
lie saia enosss IN aes.on stocks bonds securities
cations Or any part thereo! may ana shai, be sod
Bale shn give notice to the referee thar the plaintiff de.
Or any part thereof sold shall be opn
a ,sA IN me ay Of he parties no THIS
The said morgaged premises with the exception OF sad
SONS the opinion u the Court incapable Of being
srhts pad 81 The several
1t is further ordered aSjaased and decreed that the
p,anth shall be at liberty to abandon and discani ~ any
b@aesS and nsiaded N the mortgage be
oy giving sVs" o' ssS oa hs eee
shall not EXPOSE the sasshoid estates and inner.
part the murtgaged promises All leasehod estates
s .a aa 'Ia ny sa e so ie
provisions the leases and contracts under which the
pame respectively held. and 20 al fncnmbran. ex
listing thereon the date Of sale The referee snail
prepared TO give al proper congo fnns sne same
sounty New York where part Of the mortgased prem
is further ordered adudged and decreed thar the
seferee public notice Of the time ana pace q sneh
according TO law aud the rules ana practice oil TINS
IL is further ordered adudged and decreed that the said
and have at such sale for inspection
She inventory ofthe mortsaged heretofore made
Cour, and filed in tbs astion and also The more
detailed inventory thereof which the receiver has e"ue
been permitted BY the Court 70 retain IN his posses
that III confirmation 81 the sale by tns Court
aud OF tue delivery Of the deed OF Tue premises
ie said referee liver the purchaser or purchasers OF
the PREMISE herein directed TO be sold the sa'a last men
Court II amy property embraced within the said inven
tories either d them, shall have. since the ma"ng
eeo been consumed Or disposed q BY sne receive pror
nation N regard TO such property ~ tue time o. sac as
is further ordered adJudged and dccrecd any
aIproperty OF knd and description acquired ~ the
vents profits and issues Of t nrtgaged premises since
.hs maks Of me ssd las mentonea inysntorss ans not
the property and premises aud he give At
such property aforesaid emDraced within said in
of the he Ind IL practicable to
give.
ht the said referee before and at tho said sale do
perform all things that be necdnl aud proper,
take all car.iul
alteration, be judcious aud
property franchises directed herein sold
sale In such command The favorable bid
bids and the highest or best prise
AUXILIARY ACTIONS.
The said referee directed having due regard to
law the aud practice this Cours regulate
conduct the sale herein directe 70 be IN
paint may able the best OF
afforded by tn said auxary actions pend
Ing IN the said respective States OF Hew Jersey ana Penn
sylyaaia
further ordered. adudsed and decrecd that the said
referee may aud shall the request 81 the piantisn
torneys but not otherwise adjourn such safe % sales rom
time time aud such place or places within said county
he the said referee. deem necessary aud proper
Ii further ordered ajudged ana decreed that
either the parties this action Denehcircs,
of represent Trustee trustee.
become purchaser purchasers upon such sale aud
the property and franchises herein directed
be- sold, shall be sold tor casr; aud in respect
10 other matters and details herein specified
such terms Inconsistent with the provisions OF this