Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1886-12-30
THE OSCEOLA ROAD.
Decree Of Foreclosure Entered In the
Federal Court.
The Entire Road 10 70 sold to the
Highest bidder Under Direction
or 10, ceiver Mason.


From the Des Moines Register
The important suit pending in the Uni
ted States Circuit Court, in reference to
the Des Moines, Osceola q Southern
Railroad, was brought to decree yester-
day by Judge Love. The Osceola road
is narrow gauge, lis miles long, ex-
tending from Des Moines to GAINESVILLE
Mo. 1t was begun in the early spring of
1882, and Mr.. b. l.. Harding was largely
instrumental in its construction. Soon
after the road was completed mortgage
bonds were issued, and from time to time
first, second and third mortgages were
placed upon the road to secure about
1920. 900 of bonds. Early in last year
trouble commenced, in the failure to
make payments, and on the LIST of July,
1885, default was made in the payment
OF interest. Claims were rapidly filed.
IL. L. Wilson & Co., claimed over 1913. 900
on mechanics lien. for work done, and
got a judgment in March, 1885. The Iowa
Grain Il Lumber Company obtained at
the same time judgment for over Sl4.-
900. Other judgments were obtained in
quick succession, until finally. upon a
claim and judgment for $751; 900 due NJ.
III. King, and on proper showing the
Circuit Court of Madison County, on
April 2, 1885. appointed w. w. Wicks as
receiver This appointment being made
in State Court while the property ex.
tended into another State, was found un-
satisfactory, and by agreement the suit
was withdrawn and Edward r. Mason
appointed receiver by the Federal Court,
April 10, 1885. Under this receivership
the road has been operated ever since.
tho tina ha Grct rapaiuar In
ted, the showing made was that the
roads debts amounted to 81 ,l99, 000 and
the property was valued at $1,000 0. Last
April, Warren f. Putnam and others, in
lerested in the bonds, filed bill Of fore
closure, asking that sale be ordered,
and upon this bill and the numerous bills
and cross bills of all the claimants the
decree was finally issued
The decree recites the different parties
to the suit and their appearance by attor-
neys, the facts of the building and opera
ton of the road, its bond issues and de-
fault of payment of interest, the appoint
ment of Putnam, Woodman and Gillett
as trustees of the mortgages, the appoint
ment Of w. w. Wick and afterward Ed
ward r. Mason as receiver, and the sew
eral amounts due the compliments from
the company. The amounts Of the sew.
eral debts, and the order in which they
stand as liens is fixed as follows: The
first lien is declared to be that of the re
ceiver's certificates, Amounting to over
$3.50, 000 The second lien is the two
claims of r. T. Wilson IL Co., of S91 ,528.-
70 and $40, 257. 40 respectively. The third
lien is the mechanics lien of the Iowa
Grain and Lumber Co., for $l5, $50 So.
The fourth lien is that of the OSceola
Foundry and Machine Co., for 81, 434. 40
The fifth lien is that of B. l.. Harding,
on account of his mechanics lien for
1913, 281.12 The sixth lien is that of the
bondhGlders for 81, 225, S2S, being secured
by three deeds of trust. 1t is decreed
that within ten days from date the Des
Moines, Osceola and Southern Railroad
Company shall pay into court for the
benefit of the bond and lien holders, the
several sums set out, with costs of suit
and interest, etc, and in case such pay
ment is not made that all of the property
of the company including the franchises
shall be sold without redemption. The
sale is fixed for the west front door of the
United States Court House in the city of
Des Moines at such time as the Com
M Toner hereafter named shall appoint,
and public notice of time and place shall
be given in The Iowa State Register.
The trustees or such committee of bond.
holders as may be designated are author.
lied to bid in the property for the bene.
fit of all bondholders on the usual con-
ditions. that they must bid sufficient
sum to pay off the receivers certificates
and mechanics liens and the costs and
expenses of suits, the payment of the lat.
ter to be in cash, and all to be made
within six months. If the payment on
this bid is not made in the time specified
then another sale is to be had in sixty
days thereafter. Z. r. Mason is appoint
ed Commissioner to execute the decree.