The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1888-05-10
HOUSTON AND TEXAS CENTRAL
Final Decree of Foreclosure in the Fed
eral Court, Involving $lS,0oo,oOO.
| Special Telegram to the Statesman.

Final Decree of Foreclosure in the Fed
eral Court, Involving $lS0oO,oOO.
Special Telegram to the Statesman.
GALVESTON, May 4.-The final decree of
foreclosure in the case of the Farmers
Loan and Trust company VS.. the Houston
and Texas Central railroad was entered
to-day in the United States circuit court
by Judges Don A. Pardee and G. B. Sabin
This eliminates one of the most extensive
li,igations ever known in the south
west. The foreclosure is to satisfy
mortgage liens, aggregating $lS,00O0O0
The original suit asking for a receiver
was brought in 1886 by James Rintarl,
Nelson S. Craston and the farmers Loan
and Trust company, as trustees for various
bondhO'ders The decree recites the
financial history of the road and covers
100 type written pages. Charles Dilling-
ham Is appointed special master and COM
missioner to make sale, which will take
place at Galveston on day to be named
by the commissioner after six weeks publi-
cation in New York and Galveston. The
commissioner is instructed TO sell the
property as follows;
FIrst-He shall first offer for sale all
lands and property and the premises of
every kind ard description covered by
the main line first mortgaged as one
parcel and as an entirety.
Second He shall next offer all lands,
property and premises of every kind GOV
cred by the western division first mort
gage.
Third-He shall next offer all lands and
property of every kind, covered by the
main line and western division CONSOLE
dated mortgage, which are not subject to
either the nam line first mortgage or the
western division first mortgage.
Fourth-He shall next offer ali property
of every kind covered by the Waco and
Northwestern first mortgage as one
parcel.
Flfth-He shall next offer all the lands
and property covered by the Waco and
Northwestern consolidated mortgage as
one parcel, which are not subject to the
Waco and Northwestern first mortgage.
SiXth-He shall next offer all lands and
property covered by the income and in
demnity mortgage which are not subject
to the main line.
The decree then sets forth at great
length how the funds realized from the
sale shall be applied. 1t Is estimated the
costs and expenses attendant upon the
sale will approximate 100000.
After STIMULATING that these expenses
and solicitors fees shall be first satisfied
the court designates the order of pay
meut of the various mortgages. Among
the first liens 20 be satisfied from the
proceeds is the loan of over 100000
due the state school fund. 1t Is estimated
that over 100000 acres of choice land
will be sold under the decree in large
parcels.
Another decree was entered in favor of
a large number of creditors, for small
judgments, against the company. to
be paid out of the current revenues in
the hands of the receivers. These sums
are due chiefly to citizens of Houston who
as sureties for the company, were COM
PEELED to satisfy the judgments. Among
those to be thus reimbursed are ]. Waldo,
W. d. Cleveland, S. X. Mcllnenny, r. NJ.
Elgin, W. B. Bolts, James A. Baker, IT,,
Z. W. Cave, Dan Ripley, John Z. Gary, O..
+. Holt, F. W. Hopkins, NJ. L. Love, H. D.
Patrick and others.