The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-04-25
THE ERIE RAILWAY SOLD.
MIR. EDWIN ID. MORGAN BUYING 1T FOR
SIX MILLION DOLLARS.
The Thropg that Gathered ut the saIe-A mia
OF Five Million Raised "a Cool 100000
Then Going That Hair - Million Better.

=
patten OF the Supreme Court denied the appll-
cation OF John II. Brown. n preferred stock
holder Of the Erie Railway, 10 have the fore
closure sale postponed. but az tho first stroke
OF twelve sounded from Trinity Church steeple
Auctloneer Bernard Smyth mounted his ros-
trum in the Real Estate Exchange and began to
read the terms OF sale Aroundhim were gath
cred some representative lawyers. capitalists
and business men. and the part OF the room his
stand occupies was densely crowded. At q
table in front OF the rostrum sat Judge Com
stock. Courtlandt Parker. and Mr. Mcfarland.
counsel for the receiver; Referee George Tick
nor Curtis under whose order the sale was
made; II. @. Rolston, President Of the Farmers
Loan and Trust Company; William Paterson.
Master I'm Chanccry Of New Jersey; ex-Judgo
Fullerton. Ashbol Green. Charles A. Emott and
VIM. A. Beach, Of counsel for the McHenry fac
tion Herbert L. Turner of counsel for the
Farmers Loan and Trust Company. and ]. D.
Ayres. Secretary Of the Reconstruction Commit
tee. In the group surrounding the table stood
ex-Gov. Edwin y. Morgan. Samuel Sloan. Pres
idcnt o. tho Delaware. !.ackawanna and West
crn Railroad; Dorman b. Eaton. Supcrintend-
ent Camp Of the Clearing House. Frank Plat
who represented many stockholders; Henry f.
YAH. President Of the Bank Of Commerce; I. W.
Low, +. II. Wallace. and many other gentlemen
well known in banking and business circles.
The terms OF the sale were:
ccg at he pay ws s per cent in cash
II The rcsdue Of lle purchase money to be paid at
iii THE referee to receive as cash honds and coupons
Of The mortgage made by the Erie to the Farmers Loan
and Tg, cmp9n, RI 8 1874 a. such rate per cenign
d,ir'hut'n of the proceeds Of ne sale, ,,.,.
th sale he charged interest on the whole amount
N-rhe referee to pay outstanding taxes and assess
N-The purchaser to paw the auctioncers fee of $500
\ %
the property arnn rut up should the purchaser tail 70
re.noa.c Tor the dincence Il any between his lid and
that obtained At the resale.
The, whole property was put up in one lot.
thus described:
All and SINGULAR the railway Of the Eric Railway Com.
rnuy from ant intending rcrmont ON the Hudson river
Lake Enc. and the railway known as Tie Ncwhnreh
a PAL, Of the railway desi.Stci "s,ht BuaS Branch
%s s The E sns c Ssw Yor and also All olcr ra
WAYS helgnsing TO- The Erie Railway Company IN the
any Of them, together With all The and tracks, lines,
ereciion. encr. walls nSre. traici.e. priyeScs
rights Ut the said company ami also an the locomotives
uiact utcd or manufactured materials coal wood and
~ gs %, every KIM ne,9nsin3 or aprri"nins I" thS
PROFITS arising out Of the sad property sud all r2hi. %
chses r,,crcs and lights OF acan Of whaeyrr name
NE New york and Erie Railroad company. OF unto the
many. ~ the Buffalo, Ncw Nork and Erie Railroad
torsh Garo,d GSmpaSv by the RoeR anI AND
ucne,ee Valley Railroad Company. and 10y the Long
singular ihe chose. in acon stock. bonds, book &C.
mes. ieassl od r.tnt. cntr1rt. All oth.r rrn,.,ty
mcnloud ana described in NJ lists ana schedules BE-
-in,cntorv the ani personal pronerty Of
,se no, consumed or disposed Of i, the receiver IN The
e'hatsc 81 hs dg pror i2 the ale aud Including ell
receiver during his rcceivcrship with tile proceeds Of
the making u the eiu inventory ana not embraced
therein and cNcenun- hcrcrom such portions thereof
.a S' be declared excepted Al u' u' ana place Of the
The cncumbranccs wore set down at 500 3s4.-
| as in mortgages besides n large sum Tor un-
paid interest. and the purchaser was required
! 10 assume the expenses of the reccivcr-hlp. and
ia" responsibility OF all lawful contracts made
Three other long documents worc read Two
! Were from the Chan cry Count Of New Jersey.
| ean" the reading Of % long descriptive adyer-
| ns'Wcni' when was scarcely completed before
! Mr.. Frank Plat said.
"WiIi you plouse give me an inventory of the
! property tN b. sold p
Thooqruonccr made no reply; hut Mr. Cur
| dll not want 10 hid to inll back and make room
| l'r those who did. There WIS NO movement in
| ulu crowd. but Mr. Plat managed To- -quce2e
himself into place ON tho right Of the ro-trum.
! and Cov Morgan moved TO within "a foot or two
Slr Curtis explained that schedules ~ certain
l'as' holds, piers water fronts. ~, were in the
po-eessi9n OF the receiver. cA.c"piing a paper
| Gr'at Western Railroad Company o. the Erie
! Railway, There being NO evidence of the vaiidi-
nude between he Erie Hallway. /. q Wo6di,
! man. AMI the Grun~re Valley Railroad Mr..
curtis explanation was long, and Of vital in
trr"~t only o. pros ecilNe purchasers.
MIR. Plat tll Il said: A. % stockhoider Of the
Erie kp WAY phJco, 10 Tins sale. No one out
| side of q. E"'ou-tru'uon Commute" can make
| un Intelligent or bona nde bid, for NJ one else
has seen tlr inventory.
Hr was informed that the inventory was In the
fiffl fnWf "A CODY OF n Nln i'm the
| County Clerks ofllre. This inventory nl-
clent"rn volumes. and cost the Erie about
Thrn the sale began For about two minutes
there WIS no bid. hut nj length Gov. Morgan
quietly said, Five millions
Al this n tremor passed through the throng
! for IN" impression prevailed that the rohd would
| most railroad auctions being that everything is
| cui and dried in advance. n the auctionecf
began the usual repetition OF the bid there was
| a perccpthe tremor In his voice rs though he
| were awed 10y the Yastness % the amount. After
his third repstition Of " Five millionsl DO
hall. and the auctioneer, looking directly AT
Coy. Morgan asked whether he heard the Six
The Governor nodded with as cool an air ms
| though he had been buying cooking stove
and in exactly four minutes from the beginning
| Of the bidding the property WAS knocked down
! to Gov. Morgan for six million dollars.
The Governor acted with Messrs. David A.
| Reconstruction Committee. While the rcfercc
WIS drawing MP tho necessary papers Gov
| Morgan ilcl UP check on the Bank Of Com
MERGE for t720OOo. twelve per cont. ~ the price
of the road. and in a few minutes It ramc hack
from the bank duly certified. Most of the thronu
waited 10 see the transaction compl ntpi.
The news that Judge Potter hid refused r.
| POSTPONE the sale had a favorable effect on Eric
stock in Wall street. an advance Of two percent
for the day being recorded. The sale WIS ra-
garled ds insurng 4 complete rcorgan iIatiou
81 the rond. the funding Of past due coupons
an assessment OF the stOrk, and u canccluti on
of certain Improbable leases.
Mr. S. l.. H. lnrlow said last evening thai
the sule of the Fro Railway WIS a comulot,
chookmatc to the MrlIenry faction. McHenr,
and h,e adhcrruts mad Instituted mo- less thar
thirty suits against Receiver Jcweu within m,
pnst four months. M"Hcnry's design being T,
for the luuor 10 compromise with him. Mr.
JnWctt say~ that VI Henry owes the Eric Rail
WAY f4.UOuuun. ana his desire was To to hari-'
the management that they would release HIN
FROM this inlclt lurss to get rii ul him.
" .tl regard to the future action Of the Com
mntoao of Reconstruction. Mr.. Barlow said tina
within % fcw weeks the roud ought Ia bee in ful
working order. The committee r. present iG.
0ul -hnr'- of the capital stock NJ th" eompan,
| I-f. unu ~hurr~I, and on this amount the u~-n-s
| mruts - a share on the common ana 50 d
/ ehnr' ol, the prrurrrd. have been paid iu ull
/ The 'owWlttro expect that the remainder of Che
/ -lIrk nollrr, Will also pay their pro rata. Tia,
/ denomination wipes ont no class of ciniWs
/ IouHhuIdrr- having been invited To- loln in th.
o. J.. 80