Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1886-03-25
NEWS AND NOTES.
E, T., V. & G.. R. r.
To BE Sold 10 tho. Highest Bidder nj
Knoxville Next May-Judgo
Baxter's Decree Order
Ing the Sale.

'S VIZ 'oies
The Knoxville Tribune of the Goth saws;
Judge John Baxter yesterday ordered an
important decree entered in the United
States Circuit Court. 1t was not less than
an order for the sale of the East Tennes.
see, Virginia and Georgia Railroad. The
order was issued upon the application of
the Central Trust Company, of New
York, foreclosing 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 SO,
000, GOO The terms OF the sale require
that 100000 in cash shall be paid 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 a valuation that
would be equal to their distributive share
if the entire amount were paid in cash.
The Indebtedness under the foreclosure
amounts to about $16, 900, 900. Should the
highest bid be this amount the mortgage
bonds would, of course, be taken in pay
ment at par but should the successful
bid be only $12, OO0, 900, the bonds would
be taken at three -fourths their value. In
effect the decree provides that the S16,-
10000 Indebtedness can be paid with
the mortgage bonds in addition to the
500, 900 cash.
The purchasers will take the railroad
subject TO all prior valid incumberances
or liens. These include the mortgages of
1S69-70, Indebtedness on account of the
purchase of the Selma, Rome and Dalton
road. The valid liens prior to the Central
Trust Company Indebtedness amount to
about seven millions five hundred thou
sand dollars
The property to be sold under this de-
cree includes all the lines of the East Ten
nessee, Virginia and Georgia railroad
from Knoxville to Brunswick, Ca, to
Meridian, Miss, 10 Bristol, Tenn, the
Morristown branch, the Oltewah cut of, ,
and all the other branches of the East
Tennessee road, and including all the
property owned by the road, rolling
stock, depots, offices, etc, and also all the
stock owned by this road in the Knox
vile and Ohio road and in the Memphis
and Charleston road.
This decree will also be entered in Ala
bama, Georgia and Mississippi. The sale
will of course take the road out of the
hands of the Receiver as soon as the
transaction shall be confirmed by the
Federal Count. The question of confirm
alton will come up at special term Of
the United States Circuit Court in June,
or at the regular term in July.
The road will doubtless be purchased
by the present holders of the $16, 900, 900
mcr:gassc bonds, US it Is not likely anybo.
dy else can afford to bid for il. They
will buy it for $1O,0OO,OOO and pay for it
in these bonds at five-eights of their face
value. This will in no way interfere
with the reorganization scheme proposed
some time ago by the bondholders' com
mittee, of which Col. G.. NJ. McGhee is
chairman. In fact, the success of the re-
organization plan depends upon the sale
OF the road as decreed by Judge Baxter.
The entire scheme cannot be perfected
until next November, or possibly not un.
til January, 1887 The change will not
materially affect the relation of the road
to the public, as Receiver Fink Will
doubtless be made President of the new
company.