New-York tribune., 1879-04-01
SALE OF A RAILROAD.

THE NEW-JERSE1 SOUTHERN SOLD.
TRUSTEES PURCHASE IT FOR 1852, ,00O-IIsr OF
THE MORTGAGES THEREON.
lrRoM A SPECIAL CORRESPONDENT OF THE rRrBUSE.l
LONG BRANCH. March 31.-William 5. Gum
mere Master in Chancery, sold the NewJersey South
ern Railroad and branch roads day at the Pavilion
Hotel under foreclosure proceedings instituted by Ben
jamin Williamson. The property sold was the iran
chses etc. of the Long Branch and Sea shore Railroad
and .6l9 shares OF the capital stock OF the same
owned by tue New-Jersey Southern Railroad, aud
also the property franchises of the PembertOn and
New-York Railroad. Inc uding the following railroads
the railroad from Port Monmouth to Atsion. the rail
road from EaOntOwn TO Long Branch the railroad from
Toms River to Manchester, the railroad from Atco to
Atsion on the Camden Atlantic Railroad and the
railroad from Long Branch 10 Sandy Hook, together
with the East-End Hotel and thirteen acres OF ground
the boats and bdrges rOlng-stock and piers at Sandy
Hook The lease OF Pier No. Hudson River was also
included in the sale.
Before the sale Mr.. Gummere said the follow
ing mortgages were on the property: $4,000 on
the Toms River Railroad, which with interest would
amount to-day $4,000; 1875 900 on the Pemberton
and New-York Railroad; $500 900 the Long Branch
and Sea saOre Railroad. and $4,000 on the East
End Hotel and property II was also announced that
there were $3.50 600 worth of unpaid coupons on the
Pembert0n and New York Railroad. The terms Of the
sale 10 per cent Of the amount IN cash. the remain
der paid with interest from day of sale on the
Isl July, 1879, when the deed would be delivered
The property then put up for sale In one parcel
Mr. Gummere the interest Of Benjamin Will
iamson the mort gagec, started the sale, bidding
$500 OOO Henry Day then bid $525 900, advancing
bids being made by each gentleman urtl it reached
S7o2 900, n which figure It wac Knocked down to
Mr. Day When the auctiOneer asked the name OF
the purchaser, william Walter Phelps said that
it was bought by Henry Day. William Walter Phelps.
Samuel W. Bates John W. Sterling. trustees acting I'M
der a certain agreement dated September 80, 1875, be-
tween certain first mortgage bOndhOlders OF the New
Jersey Southern Railroad and Jay Gould. The old
wharf at Sandy Hook was then sold and Vas purchased
by A. p. BerthOnd Co. Tor $500. Inc NewrfOTk ana
Pcmberton Railroad, from Whitney's to Pemberton
Junction. formerly leased. next sold by Receiver
Buckeew aud purchased by Ed I. Green, trustee. In
the interest OF the Pennsylvania Railroad Company.
special train Of the Jersey Central brought Receiver
LatufOp and various magnates OF that railway who
watched the proceedings with great Interest, and
hesitate to express the belief that they sure ulti
mately obtain possession OF the southern Road by
Tbc present holders They believed they had already
accomplished this result on Tuesday through Mr.
of these Southern bonds to enter into an agreement
With him. by the terms Of which they agreed to accept
60 be gwen IN exchange for the old, but
TO TO wcn lesye t6Iy nS wcSd be equally Entitled " the
reorganization scheme, TO the Central. The Central
I9HsR Ss M Ie tSJs oi the foreclosure In
this way the Central would, by owning ma
o OF the rsS Sc %Ro S
tbe Downcr agreement, had also signed the original
agreement Of reorganization Mr.. Gould claimed that
the Downer agreement In conflict with the reOrgan-
ization agreement, and IN pressing thls cal got ms
Injunction against any further proceedings by Mr.
DOwner or the bondhOders who had joined In obedl-
cucc to this Injunction order Mr. DOwner stayed away
and the road bought in under tue original
agreement John +. Bingham, who represented Mr
Gouds interests at the sale today, informed lhE
TRIBUNE correspondent that the trustees Of the
first mortgage bOndhOlders had been Instructed
TO huv in the road, even II 1t cost S2,OOO,OOO
This agreement" said Mr. Bingham, " is as follows:
Ou the 30lh OF September 1879, Nr. GOulC anu some
OF the bondholdcrs OF the NewJersey Southern Rall
cpOItrd by which they agreed to purchase and
rcorgauze the road, bonds and preferred stock
and form new corporation which was 10
control the following lines: the Nineland Rail-
road (Which Is the continuation OF the New-Jersey
southern Railroad to Bay side on the East
end of Delaware Bay, also the Smyrna and Delaware
Raw Railroad AT eide of Delaware Bay running
across Maryland and the Kent County Railroad which
/. continuation OF the Smyrna Railroad to Chesapeake
Bay The parties to this agreement were to deposit
To the credit OF the trustees named. Frederick
W DOwner of the first mortgage bond
holders and executors OF this agreement, continued
Mr. bingham, "is soliciting the bondhoders 10
enter into a agreement, making hlln trustee, ms
object being 10 lease the NewJPrsey Southern, without
tbe Vneaud extension, to the bondhOtes OF the Long
Branch Division Of the Central Railroad Of New-Jersey
on the other Land, Mr. DOwncr claims that proper
construction this agreement requires the rs-
tes IA bly the southern Road alone, nOt TO Dut
den the bOndholders with roads III two Other Stes In
whch tLey have no interest lie says this agreement he
purposes out but that he also purposes 10 sell
ihe bonds stock that he gets IN exchange for his
Southern bonds. and sees no reason why he may not
sell 60 the Central as lawfully as 10 any other pur-
chaser