St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-12-11
THE WABASH LITIGATION.
Further Action Taken by the AItOr-
ney for the Protesting BOndhOld-


Further Action Taken by the AItOr-
ney for the Protesting Bond old
ers.
CHICAGO, Dec. 1O.-Henry Crawford.
as attorney for certain bondhOlderS OF the
Wabash. st. Louis & Pacific railway, in
accordance with the opinion given by
Judge Gresham, has taken preliminary ac-
ton in the United States circuit court at
Springfield. looking to settlement for the
nom asserting bOndhOlderS. A petition has
been filed, asking the court for an order to
compel the purchasing committee to per-
form the conditions of the purchase. 1t was
filed on Wednesday in the United States
district court in the Southern district of
Illinois in the consolidated case of the Cen
trail Trust company OF New York, trustees,
vs. the Wabash, st. Louis & Pacific Rail-
way company, and is the petition of
Thomas B. Atkins. Henry 4. McHOrg,
Jacob Stout and Stephen IL. Thayer, show
ing they are the
OWNERS AND HOLDERS
of large part of the bonds secured by
divers of the mortgages, which are valid
liens on portions of the railway property
of the defendant corporation east of the
Mississippi river, and the application is
made on behalf of themselves and all
other bondhOlders in like relation. The
petitioners show that on April 20. 1886, the
equity of redemption of said railway COM
pany was sold under a decree of court in
this case. and bid off by purchasing COM
mittee composed of James Z. JOY, OSSian
d. Ashley, Thomas II. Hubbard and Edgar
I. Wells; but in a part of said decree. the
order of sale, it was specifically ordered
that the title should be subject in all things
to the prior mortgage liens recited in the
decree, and that the petitioners are holders
of portion of the bonds secured by some
of the mortgages specified In the decree of
foreclosure and subject to which the pur-
chasing committee acquired its rights. The
petition shows that on June Ii the pur-
chasing committee
PROCURED A DECREE
confirming their purchase. and have re-
ceived conveyance investing in
them the nOminaIlegal title 10
the property, but subject to the
rights of the petitioners and all other
boudhOlders 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
The petitioners also show that by the org
inal decree OF foreclosure. and also in and
by said order and decree of confirmation,
both OF which are of record in the court in
this cause. it was specifically ordered and
decreed that any purchasers under said de-
cree of continuation should and would
when ordered by the court, pay into court
all such sums OF money as were necessary
to fully Gquidate all the debts and liabilities
of the receivers, and all claims adjudged
by any court having jurisdiction in parte
in the nature of preferential liens
The petition further alleges that it has
been adjudged and declared that there eX-
lists debts against the receivers and the
property in their charge in the nature of
preferred claims to the amount of about
$4,000, 600. 1t is further shown that. though
nearly six mouths have expired since the
confirmation of the sale the purchasing
committee have not in any way paid any
portion of the receivers debts or prefer
entail charges, although, 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 the special purpose of
making such payment, and the said COM
mittee have wholly failed and refused to
make such payment, and do now give out,
pretend and threaten petitioners and all
other bondhOlders that they will not
hquidate any of such prior and preferred
liabilities. Petitioners show that claims
to the sum of S.. 100000 have been ad-
judged to be the receivers debts, and that
other charges to the amount of about $780,
600 are depending in the courts for ad-
JudicatiOn as preferred charges. The petit
TONERS pray that 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 hay
ing jurisdiction of said portion of said
mortgaged property, and parts thereof by
its receivers. the sum of So. 600. 600 where
with to pay all of the preferential CLAIMS
against said railroad property and also
compelling and requiring the said mr.
chasers to deposit bond of good and suf-
ficient security, conditioned that such mr.
chaSers shall pay into court from time
to time all such sums of money as NAV ha
necessary to pay off all such sums as this or
any court having jurisdiction of parts of
said railway may adjudge to be charges
against said receivers or property, prior tn
the title of said purchasers. And the peti-
TONERS pray for such other and further re-
lief as may be necessary to fully cnmpel
4bo m Torforn, fhafr