The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-25
E r | E
The Great Railway Sold at
t Public Auction.
= RICE, 100000
Ex-Governor Morgan Buys the Property
for the New Management.


Ex-Governor Morgan, DAVID Wces andJ. l. Welsh
were tho purchasers trust TOR the company,
which lsto represent IN joriy Of the stockholders
under the administration OF reform.
AT nal-past nine O'Clock in the morning another
lense crowd filled Supreme Court Chambers, listen
10 the continuation before Judge Potter Of the argu
ment on behalf OF John H. Brown and W. Isaacson,
claiming TO DO preferred sockh odcrs OF The Erie Rail-
way Company 10 prevent the sale OF the road under
The decree or foreclosure Counsel both sides
were present The argument the main an
elaboration Of tho poicts advanced tho argument
during The Two r.vious days Notwn hs,andinC, how
ever, It's rather uniform dryness and discussion oil
technical law points, except when counsel branched
Cd into ,nvec.ive, which they frequently did, the
hrong in attendance listened with unabated interest
ga4f CONTINUATION THE ARGUMENT
Ex-Judge Comstock, who mado the closing arRu-
ment on the day previous, resumed and spoke foE
oyer hour Applying Tor the receiver and trustees
OF the mortgage he explained how the sale and reor.
ganization plan was brought about He said that q
combination oil the English stockholders had been
made representing the tens OF thousands OF stock
holders IN Great Britain and on the Continent TO
save their property and that Of all other credit
prs Of the road. They had put themselves In CON-
municaIion with the Farmcrs' Loan and Trust Com.
oany. which they made their trustees, ana with Mr..
Iewet tho receiver, whom they desired TO aid their
plan In every way he possibly could. They offered
take funded bonds for their alternate coupons and
The plan was in every way beneficial every creditor
bondholder and stockholder Of the company They
woui postpone the COLLECTION of their dues and
make a sale OF the road, TO sacrifice IT, but TO
secure such reorganization would protect all in
terests. Tho preferred stockholders were asked TO
pay TOUR per cent thor holdings and receive
Their stock as before. and the holders OF common
The pressure Of s1l, oOo, 900 OF interest unpaid
But combination mad been made 10 plumber
The road ny stick jobbers and keep IN the wreck
condition which uad made II stench In the nostr
Of the c"n'snanity. TINS was done by Mchcnry, who
not only hal 10 interest whssever IN the ROAD, no
owed ~, 600 COO Oh account OF bonds held, aud who
Was only desirous oil linking to II the dead carcass Of
Western schcme Which had Jailed. In conclusion
he said that i IA contest OF nothing III interest
against the $40 900 600 first mortgage ens, against
The $25 900 900 o! second mortgage hens and against
$50 OF Stock and he could ouly nope that
God III HIS lnnuite mercy Win save tins property 70
The men aud women, the widows aud orphans, scat
tered the face OF the globe, whom belongs
t THE OTHER sIDR n8lsa
MIR. William A. Beach followed ON behalf OF the poti
TONERS HIS speech occupied the next hour, and was
largely made oil torrent OF invectIves against Mr.
haciaIla Hand, 0ac OF the opposing counsel In The
course Of his argument he stated that the holders Of
over three hundred thousand shares OF stock hal
Already expressly dsscnted IRON the proposed scheme
vi rcconstr ucoa, while the whole number oil shares
.as ony 49, 50 tnat Tue dssen Was already nearly
mat OF a majority.
Judge Coms.ock that this was not true ana the
scncme had the assent OF over majority, as was
shown Uy Their percentage contributions, and there
we're Sill SIX months III winch to hear from the re-
maindcr. shN ataH@Na.. sa7o3 Nh N4sss aGAs
rms led TO o brief interruption by Mr.. Green and
General Sckics but the Court stopped H. directing
:he argument 10 proceed and with very little further
INTERRUPTION Mr. Beach conllnued hrs argument 10
The close. ExJudge Emost spoke Tor few miputos
u lacked nnoteen minutes 70 twelve O'Clock when
he sat down. ~ aYt sHtt t N4A N iW#H
Judge Potter, VINO during the three days OF contin
uous ana necessarily stguing speeches had scarcely
stead oil taking the papers, as IL was supposed he
would have done, gave his docs,on promptly on the
have had iiltc opportunity TO givo u any thought
whatever uud only sucn AS occurred IN tue progress
Vi tho discussion II seems this decree was taken
last November aud from tnul time this there have
been sari0us applications aud now hs one made Ut
I eve ns sAe aay aSls ~ ms
sourt can relieve against think the sale should
the UNSUCCESSFUL CoUxsxL
AZ well may be imagined this prompt decision took
everybody by surprise. and whio, OF course, thcro
Jubilaton the part Of the successful COUNSEL
tho opposing COUNSEL were taken very much aDsck.
s'Mhat do you think OF the decsion Z" HkaALD
reporter asked General Scklea s4s3
~ have TOO many Things 10 think about now to
about that, 4" replied The General rather tartly
What DO you think Of Z" the reporter next asked
Mr. Vauderpoc, another unsuccessful cuuDsoi.
You have got TO take things as they come,' he re-
spouded with equa, acerb,ty.
Judge Grover once said. 'All We Is either TO
appeal the casa Or else 90 TO the corner grocery aud
These were lno only three OF tho opposing counsel
who remained, the othors, together with The sue
sessiui lawyers, having quickly left the court room
on Judge Potter's announcing his decision. These
counsel SIMPLY remained to nave set down Tor Friday
she argument on tho molIon IN the SUIT brought by
Brown and lsaacson against tho same defendants,
which was done.
8f IN HASTE TO SELL.
Just before noon the time announced for tho sale
TO uegin Judge Potters decision Mr.. Thomas K
Brown. general superintendent OF the Erie ferfies,
wno. VITA an assistant. had boon in,russed
NIth the duty OF carrying the inventory Of
ine road and It's Properties 10 the auctionecr,
rushed from the room aud Jumping into u light Erie
io0t of Duane street The Inventory consisted. Of
eighteen large volumes and had kept uudsr lock
aud key In The great sale OF the oiics These books
we're hastily put into the wagon aud lns vohicie
arven at furious ratio toward The Exchauge Sales
AXE place MT. brown reached the saiesroom only
seven minutes before the sale logan. The members
81 the oppost,on were somewhat surprised al the APP
pearance oil me books anu tne announcement that
ihe sale ~ proceed, Tor the statement mad boon
VITA much confidence that it would be post
poned, II not prevented cntTely.
PENSIONS PREsEST.
Among the numerous spectators present were
Judge Fullerton, ex Governor Morgan, William Me-
Gariand. exJudge Comsloek, Dorman Is. Eaton, Cvrt-
landt Parker, Charles Frost, nj. Lanier George
ricxnor Curtis. referee bernard Smythe occupied
the auctioDeers stand and began tho proceedings by
reading several vouminous documents setting forth
The terms OF the ssla This occupied the part Of
an hour.
The conditions of tho TRANSFER substance as
iol ows.-
Twelve per Of the Of tho accepted DO
paid the At the time aud place Of sale cash.
m ees.ihea check or checks sa,isiaetory ,hs
sree for which the referees receipt will given The
purchaser purchasers. In he they
pay part of the purchase IA bonds will
Tiled back balance of the
that not be required TO the cash
which be needed 10 be made by r.ieres
lhe full execution of tho jud nent Anu the purchaser
may AZ election Of referee required pay
further cash. provided the twelve per
rent on she accepted bid snail be sufficient
10 pay ali just aud lawful charges required by
lno Judgment g be paid out Of tho or,eseus
OF The residue OF the purchase money
10 be paid TO referee at Ne eniee Of the Farmers
Loan aud Trust Company, No. 20 Exchange place. New
iyrk, on .he ist q June ISIS ~ noun ~h.n tue dee
the Erie Away COMPANY from and including
Ptrruont the Hu hiver, to nna
terminus OF the railway Lake Irie, the railway
Known Newburg branch. from Newburg the m
iue also all that part OF The railway uesig
lie Buffalo branch the Erie hallway, extending
10 Attca la the state Of New York
all other belonging 10 the rie Halfway Conpan,
In ths states Of New York. Pemasylvania New
Jersey any Of them together with MI til. lands tracks
iiuss rails BRIDGES buildings picr whnrvcs stuc
tures erecons. fences, walls fixtures. franchises
ieges rights of the said company also ~ the
rumutves engines tenders, cars. carriages tools,
supplies Of every Eind belonging 10 the
tolls income. issues and profits arising Of
property, and all ighs 10 receive or ths
all the estate right title ana Interest," terms and
remainder OF terms franchises privileges and rights OF