The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-12-13

this case by the court at ST Louis. because it
appointed without any notice to- or knowledge
If. the numerous creditors of the Wabash COM
pany, bond and floating, Scion mphreys, who
had been president of the Wabash company
while the scheme for acquiring the bankrupt
lines and putting the securities based upon the
insolvent system was being worked. At the
time of his appointment Humphreys was
director of the Wabash and was active in its
management 1t associated with him, as CO.
receiver. Thomas e. Tut of ST. Louis who was
at that time director but not active in its man.
agement although the bank of which Mr.. Tut
was president seems to have been the financial
agency OF the company in St Louis and when
the receivers or the company were appointed was
hoatlng-debt creditor of the company to the
amount of about $50 000
Here is the situation as it now exists: The
general mortgage and collateral trust mortgages
have been foreelosed at ST. Louis; the Wabash
property has been purchased by committee rep
resenting the owners of the collateral and gen.
eral mortgage bonds and the preferred and COM
mon stock. A proper title to the property of the
Wa bash company, subject to all prior mortgages,
is now possessed by the purchasing committee.
The purchasing committee. however by virtue
of the decree of sale not entitled to posses
sion until the receivers certificates and other
court NEUTRALITY-SUSPICIOUS. to 81 O00 600
are paid The committee have this amount at
their disposal, derived from assessment of the
collateral and general mortgage bonds and the
preferred and common stock The purchasing
themselves
ttude That, In addition to the court indebted
ness before stated there is over 81 600 900 Of
past-due interest unpaid upon prior mortgages
east of the Mississippi river The committee
have no funds with which to pay this interest,
and the holders of this bonded Indebtedness have
been asked by the purchasing committee to make
concessions In regard to the same by funding
their past-due coupons in lieu of receiving cash.
The amount of the prior mortgage debt is about
$27. 900, 600 Holders of $l1 900. 900 of these
wtt taa hos bad CO.
mittees plan; the holders of 81, 000 900 have OPP
posed it upon whose application the present re-
ceivers have been removed). and the other $13-
600 900 of prior bondholders have not yet been
heard from.
st seems certain that the purchasing COM
mttee can raise more money by levying as
sessments upon the holders Of any of the secur-
tiles they represent, and without assistance from
Mr.. Gould and his assistants, who were 50 po-
tent in building up the so-called Wabash sys-
tem,' that system is certain in the future to
become disintegrated and resolved to its origi-
nal elements. In the latter event the holders of
the securities represented by the purchasing
committee will find themselves possessed OF their
paper securities unsecured by any. property
which is worthy the name. Securities which
are at present Quoted on the New York Stock
Exchange at over $780, 900, 900, representing
par value of nearly $751;, 100000 were originally
sold about follows:
ST. 600 600 first mortgage bonds at .$17 900 900
3 600 600 preferred stock at about &c., l8 400 900
$2l 600 600 common stock at about 45.-. 13 900
Total ,.,.. .$47, $50, 600
Loss to public per present New York
stock quotations. ----..-.-.------ ST., $50 goo
Loss to public per the facts. AZ, $50 900
Profit to Gould and associates 47,5500 600
"And all the profit to Gould and his associates
does not appear in that table either, for
count is made of the collateral trust mortgage.
The Wabash system was worth to the Wabash
wreckers fully fifty millions"