The comet. (Johnson City, Tenn.) 1884-1916, 1886-03-25
THE EAST TENN. RAILROAD
To Be Sold to tie Highest Bidder in
Knoxville Next May---Judge
Baxter's Decree Order
ing the Sale.

Baxters Decree Order
ing the Sale.
Judge John Baxter yesterday order
ed an important decree entered in the
United States Circuit Court, 1t was
no less than an order for the sale of
the East Tennessee, Virginia and
Georgia Railroad. The order was is
sued upon the application of the Cen
tral Trust Company, Of New York,
foreclosing a mortgage. The sale is to
take place not later than the 25th OF
may next, in front of the Custom
House in this city, after six weeks
advertising. No bid will be taken for
less than $10OO0,O00. The terms of the
sale require that 100000 in cash shall
be bald down on the day OF the sale.
The balance shall be paid either in
cash or in the mortgage bonds issued
under the mortgage being foreclosed
by the Central Trust Company, the
bonds to be taken at valuation that
would be equal to their distributive
share if the entire amount were paid
in cash.
The Indebtedness under the fore
closure amounts to about $16,000000.
Should the highest bid be this amount
the mortgage bonds would, of course,
be taken in payment at par, but
should the successful bid Lbe only
$12,000,000, the bonds would be taken
at three-fourths their value. In ef-
feet the degree provides that the
$16,0 100000 indebtedness can be paid
with the mortgage bonds in addition
to the 100000 cash.
The purchasers will take the rail-
road subject to all prior valid incum-
brances or liens. These include the
mortgages of 1S69-70, Indebtedness on
account Of the purchase of the Selma,
Rome and Dalton ro,d. The valid
liens prior to the Centr.l Trust Com
pany indebtedness amount to about
seven millions, five hundred thousand
dollars.
The property to be sold under this
1
decree includes all the lines of the
East Tennessee, Virginia and Georgia
railroad from Knoxville to Brunswick,
Ca, to Meridian, Miss, to Bristol,
Tenn, the morristown branch, the
0oltewah cut off, and all the other
branches of the East Tennessee road
and including all the property owned
by the road, rolling stock, depots Of
fees etc., and also all the stock own
ed by this road in the Knoxville and
Ohio road and in the Memphis and
Charleston road.
This decree will also be entered in
Alabama, Georgir and Mississippi
The sale will OF course take the road
out of the hands Of the Receiver as
soon as the transaction shall be con
firmed by the Federal Court. The
question of confirmation will come uT
at special term of the United States
Circuit Court in June, or at the regu
lar term in July.
OF course the public will under
stand that all this is a mere formality
of law which must be complied with
The road will douptless be purchases
by the present holders Of the $4,000,
900 mortgage bonds, as it is not likel.
anybody else can afford to bid for il
They will buy it for $10,000,0O0 AM
pay for it in these bonds at fve-eighth
OF their face value. This will in N
r way interfere with the reorganization
| scheme proposed some time ago b
E the bondholders' committee, of whic
{ Col. G. M. McGhee, Of this city,
= chairman. In fact, the success Of tn
f reorganization plan depends upo
v the sale Of the road as decreed b
K Judge Baxter The entire schem
cannot be perfected until next Noven
n Der, or possibly not until Januar,
0 1887. The change will not material
d affect the relation Of the road to I'll
public, as Receiver Fink will doub
|. less be made President of the ne
II company Knoxville Tribune.
If