Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1886-12-11
WANTS A SETTLEMENT.
Wabash Bondholders Bring suit Against
the Purchase Committee.


Wabash Bondholders Bring suit Against
the Purchase Committee.
CHICAGO, December 10.-Henry Craw-
ford, as attorney for certain bondholders
of the Wabash, st. Louis and Pacific
Railway, il accordance with the opinion
given by Judge Gresham, has taken
preliminary action in United States
Circuit Court ut Springfield looking
to settlement for the non-assenting bond
holders. A petition has been filed ask
ing the Court for an order to COM
pei the Purchasing Committee
to perform the conditions of the
purchase. The particulars show that on
April 26, 1856, the equity of redemption
of said railway company was sold under n
decree of Court in this case, and bid
of by a purchasing committee COM
posed of James T. Joy, OSsian ID. Ashley,
Thos. II. Hubbard and Edgar T. Wells,
but in part of said decree and order of
sale it was specially ordered that the title
should subject in all things to the prior
IuOIkHdHC llCllS lCIlNCNl III lllC duN
that the petitioners are holders of por-
tion of the bonds secured by some of the
mortgages specified in the decree of fore
closure and subject to which the pur-
chasing committee acquired the rights.
The petition shows that on June Is the
Purchasing Committee procured decree
confirming their purchase, and have re-
ceivcd conveyance vesting in them the
nominal legal title Of the property, but
subject TO the rights Of the petitioners and
all other bond-holders holding mortgages
or liens upon any part of the railroad
property, but said Purchasing Committee
have not been placed in possession of any
part of the lines Of railway covered by the
petitioners bonds. The petitioners also
show that by the original decree OF fore
closure, and also in and by said order and
decree of confirmation, both of which are
of record in the Court in this case, it was
specifically ordered and decreed that any
purchasers under said decree of cOniirma-
tiOn should and would, when ordered by
the Court, pay into Court all such sums of
money as were necessary to fully liquidate
all the debts and liabilities of the receiv-
ers and all claims adjudged by any Court
having jurisdiction m parts in the nature Of
preferential liens.
The petition further alleges it has been
adiudged and declared that there exist
debts against the receivers and the property
in their charge in the nature of preferred
claims to the amount OF about 81, G00, 900.
| 1t is further shown, that though nearly six
months have expired since the confrma-
tion OF the sale, the purchasing committee
have not i'll any way paid any portion OF
receivers debts or preferential ,harSes, al
though, as admitted by the committee, they
have under control sufficient to fully pay
said obligations, and that said sum Of
money was placed with the committee for
| special purpose of making such payment;
and the said committee have wholly failed
and refused to make snch payment, and do
now give out, pretend and threaten petit
| TONERS and all other bOndhOlders that
they will not liquidate any of such prior
and preferred liabilities. Petitioners show
| that claims to the sum Of S3, GOO, 600 have
been adiudged to be receivers debts, and
| that other charges to the amount of about
So, 900, 900 are depending in the courts for
adjudication rs preferred charges. The
petitioners pray the Court in behalf of all
| in like relation to forthwith enter an order
requiring the said Joy, Ashley, Hubbard,
and all Others as such Purchasing
| Committee, to perform the conditions OF
their purchase and pay into this, or some
other court having jurisdiction, OF said pOr-
tion OF said mOrtgaged property and parts
thereof, by its receivers, the sum of $3,
GOO,OOO wherewith to pay all Of the pre-
ferential claims against said railway
property, and also compelling and requir-
ing the said purchasers TO deposit bond
of good and sufficient security, condition
ed that such purchasers shall pay into the
court from time to time all such sums as
this or any court having jurisdiction OF
parts of said railway may adiudge to be
! charges against said receivers of property
prior to the title OF said purchasers.
In conclusion, the petitioners pray for
such other and further relief rs may be
necessary to fully compel the purchasers
| to perform their bid and clear up all OF
said liabilities and fully protect the liens
and priOIitieS of the petitioners and all
Others holding elder securities upon said
railway property. The petition is attested
by Henry Crawford as solicitor for the pc
titioners. Mr. Crawford was absent in
New York yesterday. 1t is understood
that, in case ola further refusal of the
Purchasing Committee to comply with
such an order as is petitioned for, steps
will he taken in the Court at Springfield
to foreclose the mortgages of 1867 and
1879 Attorney Crawford has been anX-
ions TO aTpue tht. motion on an applicatiOn
it was necessarily delayed by the absence
of Judge Gresham at indianapolis.