The New York herald., 1879-12-02
SALE OF A TRUNK LINE.
THE ATLANTIC AND GREAT WESTERN RAILROAD
OF NEW YORK, PENNSYLVANIA AND OHIO TO
BE REORG ANIzED uSDRR A FORFCLOsURE

THE ATLANTIC AND GREAT WESTERN RAILROAD
OF NEW YORK. PENNSYLVANIA AND OHIO TO
BE REoRGANIzED UNDER FORECLOSURE.
AKRON Ohio. Nov. 40. 1879.
Mr.. William II. Upson. of this city, attorney Tor
the Atlantic and Great Western Railroad informs the
HERALD correspondent that on the day before
Thanksgiving he received cable message from
London indicating that at length the end of the pro-
tracted lgaton this great trunk line railroad Is
at hand. The Common Pleas Court OF this tSummit)
county in July last gave the decrees for the
sale Of the road under the foreclosure Of the mort
cages. The Pennsylvania and New York courts have
since made similar decrees. and the matter has only
been awaiting the action of the Reconstruction Com
mittee. The cable advices received by Mr.. Upson
gave information that the English trustees. of whom
Charles z. Lewis, M. p, is chairman. have per-
fected their plans to secure oil the funds
needed. the last obstacle ia now re-
moved. and the sale Of the road will take
place as soon the proper advertisements can be
made. which will have to be made at Akron and
Cleveland. in this State Meadville and Philadephia
In Pennsylvania. and New York city. On Wednes-
day. therefore. Judge Tbbsls. of the Summit County
Common Pleas. issued the hnal order of sale to Re-
ceiver J. H. Devereux. as Special Master Commis-
soner for the sale of the road. The sale will take
place at the Court House door, In this city, probably
in January next but the exact date is left for the
Taylor and Dunphy trustees to fix. The decree re-
cites in substance:-
COMPANY.
That there IS now due. i'll principal on the hrst
mortgage bonds (Flagg and SteGlnan. trusteesl,
$2.416300. and in interest. $427 627 At; total.
927 AZ. In addition there lien of S10257 "a
In favor OF Dan p. Eels. trustee next in rank also
several other coupons, called subrogated coupons.
aggregating S390927 %; also certain interest
coupons Of bonds aggreeating Ssa,Ilo 80. which
under tho first mortgage.
That on the 10th of December. 1871. the Atlantic
road executed to william II. Taylor and william A.
Dunphy, trustees, mortgage or deed Of trust TO
secure the payment of the bonds OF the said COM
aiso delivered to said trustees deed Of further as
1.-THE decree describes at length the Allan
tic Company's purchase of the Cleveland and Ma
honing and other properties. and the man
ner Of payment To raise money to pay for
these purchases the company issued its bonds to
the amount of S55U0.000 for the Mahoning road,
interest $6,06s.000: for certain oil railroads
$4,000 900. upon which there is due 900; also
the right to redeem stock of the Cleveland Column
bus. Cincinnati and Indianapolis road to the amount
of $4 790, 900.
company issued to the trustees. Taylor and Dun
ply. there s15. 500 in hrst mortgage bonds,
and the company is IN default $6,176.2S4 81 In in
That of second mortgage bonds there remains un-
paid the Of 49, 500, exclusive Of bonds to the
Banaue Franco. .Esyptienne and there is also due in
interest SAILS, COZ o5 That as q third lien bonds
aggregatng s27 ss6.5oo have been issued from time
to time. no interest being yet payable. This ex-
cudes the of $797. 500 in the hands of Bischo-
sheim < Goldschmidt.
That the receivers indebtedness Is 900, and
that the company owes for labor. supplies. &C..
$12,s67 81.
That the mortgaged premises constitute the en-
tire railroad and that 1t ought to be sold in Its
tirety.
DECREE OF SALE.
Wherefore III
in substance,
That the Fiagg and stedman mortgage is nrst lien
upon the entire railway in the State of Ohio.
That the mortgage and deed Of further assurance
constitutes second lien for the security of the
Biscnoffsheim bonds and first lien upon the re-
mainder
That Horsey and Canda. successors to Flagg and
Stedman, entitled to decree of foreclosure and
sale.
That Taylor aud punphy are entitled to decree of
foreclosure.
That the Atlantic road pay to Horsey and Canda
the sum found due, with costs, &c.
Thatin the event Of default in the above the mort
gagged premises to be sold entirety, John II.
Devereux to be Special Master for such
sale; the mortgaged premises to be sold en-.
tirety for not less than $6.O0O000
That the mortgaged premises are to be sold sub.
ject to the deed or further assurance.
That an order Of sale shall be issued by the Clerl
of the Court the sale to take place before the st
February. 1880.
That any Of the parties In the action may become
That the sale shall be by the Special Master Com
missioner subject to all lawful contracts of the re-
ceiver.
That out OF the proceeds the Special Master Com
missioner shall pay:-First, the cost second, re-
ceivers indebtedness; third, the Horsey and Canda
mortgage; fourth amount due for labor and SER
vices; NTH. the balance to plaintiffs. Taylor and
Dunphy.
PLANS FOR REORGANIZATION.
All other points Of litigation in respect to this
property have been taken out OF court by the
ment Of all the parties interested. The debts Of the
Atlantic and Great Western amount to nearly
he aul wi uot real lizpO n
secured through syndicate, composed of London.
Amsterdam and Paris banking houses, and Kuhn,
Loed II Co.. OF New York city, the American
members who place S. 900 Of hfteenyear six per
cent bonds. with the proceeds Of which they pro-
pose to pay on the preferred debts and the costs OF
the improvements on the line of the road. new
company is to be organized. which will be known
the New York. Pen nsylvania and Ohio Railroad Com
pany. The company Is to secure q through line
from New York to Chicago.