New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-30
THE WABASH PROPERTY.
ARGUMENT OF THE PURCHASING COMMITTEE BE
FORE JUDGE TREAT.

ARGUMENT OF THE PURCHASING COMMITTEE BE-
FORE JUDGE TREAT
ST. LOUIS, Dec. 20 (>pecial)-This morning the
Wabash Purchasing Committee, consisting OF Edgar
t. Welles o. d. Ashley. Thomas FL. Hubbard and
James F. Joy, appeared in the United States Circuit
Court to present a proposition to assume actua
possession of the Wabash road General Hubbard
appeared for the Committee and explaned its func-
tions to the Court The Committee, he said, paid
S625 600 for the paper title TO the Wabash, but did
not make appication for possession OF the property
because while they had sufficient money to pay tue re-
ceiver's Indebtedness they would not have any eit
toward the payment of the two years accrued interest
on the bonds OF the lines east OF the MssiNsppl III
was probable that the earnings OF the lines woulu
be suite ent meet these Obligations, Judging from
the earnings OF 1884 and 1850 The interest was
per cent most of these bond" and they were shortly
to expire. So il proposed TO fund the accrued
interest and reduce the future interest 10 per cent
with the option to the bondhoders 10 take new sheets
of coupons extending the bonds for forty years. vi
the S21 600 00U tonds holders OF $lO,OOOOUO con-
sented Four millions OF those not ,onsenl'ng orlgi-
mated the proceedings III chicago III "ncn Juuee
Gresham rendered his decision. General Hubbard
read extracts from Judge Greshams decision, showing
that they ped TO the belief that the Purchasing
Co nmittee was guilty of breach OF contract in not
having The accrued interest the bonds, and quoted
from the decree of sale to show that the Cominitee
mad qRY %aAs de s 4s iS5 as
of the underlying mortgages.
Judge Treat interrupted him TO ask the nature OF the
| party was in court. -.
There is DO opposite party represented here sald
| General Hubbard d" WAS proceeding to th" appli-
! cation wished to make. 1t is ths-tha' the court
will make an order directing the receivers 10 give
10 the Purchasing Committee OF all property
| purchased by it define the terms upon which such
iossession shall be gwen lie continued saying ,nao
the Committee did not expect The Court wo ia give
them possession of the lines east OF the Mssispp lor
they would in a few days be out OF the courts re-
jude Treat said Suppose you ask for possession
| I, nartv chase
| hasn't the Court authority 10 give 1t to you
| General Hubbard said the reason was IN the TACT
| that Judge Cooley would have possession on January
under Judge Gresham's order Judge Treat seemed
inclined to dispute Judge Greshaps jurisdiction over
the property, bat Judge Brewer checked him by sug-
eesting that the application the Committee be put
| in writing The Court then adjourned IN order thal
the application might be properly prepared 1t Will DE
presented in the morning c- .o,.,
The report OF the Master IN Chancery shows to'a!
deficit OF S774 O46 92 in lines east OF the MssissiP
| since thu receiver took hold The only lines showing
a surplus are the Detroit and East 81 Louis LOUIS
| S237. .5Z7 73-Indiana Division and Detroit Dutiei
and ST. Louis a total OF $36957i 49,