New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-07-31
TO SELL A TELEGRAPH LINE.
TIE BANKERS AND MERCHANTS GOING.

TIE BANKERS AND MERCHANTS GOING.
RIGHTS OF CHICAGO BONDHOLDEss TO BIZ PRO-
IEcTED-pEcIsioS BY JUSTICE DAVIS.
An order staying the sale OF the property OF
the Bankers aud Merchants Telegraph Company under
the decree foreclosure OF the for $lOOOOoOO
obtained by the Farmers Loan and Trust Company was
granted by Chief Justice Noah Davis OF the Supremes
Court Wednesday. II is made upon the application
OF Joseph g. Auerbach counsel for Willard K. Powers,
of Chicago representing the holders OF $40 bonds OF
the telegraph company vino claim that they
did not receive due notice OF the foreclosure
suit. The application based upon affidavit by
Mr. Auerbach that appeal hal been taken from JUS
Donohues decision denying the motion to the
decree OF foreclosure and to the Trust Company
from the position OF trustee of the mortgage and that
irreparabe damage would suit his clients II the sale
should take place before the hearing and final Judgment
by the General Term the appeal Yesterday the stay
was vacated by the Judge. who directed that
meantime ample security should be given to the Western
and that any rights which they shall here
after lie found to have shall be protected.
Justice Davis after granting the stay made an order
tho application Of the counsel for tho Farmers Loan
and Trust Company permitting thon to move for the
correction OF certain In the decree Of foreclosure
sn na o fas Dwight r 1sssS s %g'n forth s
affidavit that there are outstanding about 100000 OF
company SI25. 900. and is doing business at loss
about 900 day that receivers certificates could
therefore, to repair tue lines could only be OBJ
tanned at ruinous rates and that II the sale OF the
property Is deferred until october the bondhodcrs sec-
ity would be wiped out. Mr. Townsend declared that
the property Of the telegraph company Tas worth less
account Of the original divisional mortgage which
was a lien prior 10 the $l0 1000 900 mortgage.
Several hours occupied in hearing argument be-
fore the decision rendered. Colonel Robert G:
Of receivers certificates. who was with him in
court, Herbert b. Turner and David Mcclure, counsel
for the Farmers Loan and Trust Company Edward
Lauterbach and William d. Guthrie, for the Rcorganiza
ton Committee OF I the Bankers ,.i ana
Of tue receiver of the Telegraph company
and Dwight Townsend. chairman OF the Bopdholders
Committee OF the same company. united in asking that
the stay lie vacated. They were opposed by Mr. Auer
bach. Mr. Powers. and L. c. OBren Mr.. Turner main
tanned that the continuance OF the stay would cause the
absolute destruction Of the property while II the sale
took place at the Reorganization Committee would
purchase H. by winch the best interests OF all Wouu pe
and o0 would anv be now PUT .S.an asa
in ' carrying on the business OF tho telegraph company
Mr. Aucrbsch insisted that the sale would be detrimen
tai to the Of his Clients ana Ss@rgee ,ns.
consprng against their Interests and that at tho
and leave these Chicago bondbolders without anything
lie cared nothing about the claim mat he company was
rights OF his client
Colonel Ingerso said that the opposing party had the
the property wa. losing $1,000 day provided thoy
did not lose anything. Mr. stokes had shown enough
confidence IN the supreno Court 10 buy the receivers
Sir AaeTbach~I don't bolicve he bought them;
III.
presented to show that ne bought them at not
less than ninety the dollar We are trying to
save few panks from the ship. They maintain that
guardian OF the court-the administrator OF the
Judiciary. This man Is standing by q, MS
clients, and faithful Is he to them
that he going sacrifice every dollar Of security that
there Il behind the bonds. ,...
After further argument. In the course OF which Everett
r. Wheeler said that representing the Third National
Bank OF the creditors his only desire was that inc
bank shoud have lien upon the proceeds OF tho
aud should have It's rights preserved Justice DAVIS
finally made order directing that the decree OF Tore
closure amended by adding tho following provision
"Nothng aimed shall construed 10 prejudice
the rghIs OF the petitioner NJ X Powers representing
30 bonds 20 question the validity OF the receivers GER
tncatss referred IN this Judgment IL was further
ordered II any OF the certificates arc used Tor the
purchase OF the mortgagcd property the rights OF the pc
tiioner be protected by the deposit with the trust
Company Of hrst mortgage bonds OF the Il nled Lines
Tce sraph Company to tho amount OF sOOOoo or AZ inc
election OF petitioner. by the deposit OF BOND
approved by The Court IN double TIE amount OF the
proportion OF the bid which the petitioner
would been entitled To IN case none or the fecclv
err. certificates had been used In the purchase and II
tho property {. bought IN by some person disconnected
with OF rcDr. anLtiOu and the Ihltci Lines
Telegraph Company the deposit 10 be made Ia cash To
the amount OF the proportion referred To. -,
order STAYING the sale vacated ana IL VIII &C
cordngly take place to-day The right reserved TO
The Chicago bOndhoiers Of entering Into the r.organlLi
ton ON the same other bondholders II they so
elect within sixty days after tue sale.