New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-03-22
THE FATE OF THE WABASH.
COUNSEL ENDEAvoRING TO AGREE ON =
PLAN OF ACTION.


IF THE SALE IS DEcREED, TWO HEAVY MORT
CAGES WILL BE NEUTRALITY-SUSPICIOUS. GRESHAM
AMUSED BY TUE PROPOSITION THAT THE
ATTORNEYS SHOULD TRY no AGREE.
[Br TELEGRAPH TO THE rkIRusE.l
Chicago March 21.-Judges Gresham and Jackson
sat In court this morning 10 hear the arguments
which win decide tho fate of the Wabash. ST. Louis
and Pacific Railway. The case Is brought to final
hearing ON an attempt Of the Purchasing Committee,
J. F. JOY. f. II. Hubbard, o. d. Ashley and E. T.
Wells to perfect the sale Of the Chicago division, and
TO reoganize and consolidate the remaining divisions
composing the main lines Of two other divisions be-
tween Toledo and Hannibal and Decatur add St
Louis. The whole matter turns on the exceptions
ded to the masters report which declares against
sale on the grounds that the interests involved arc
commingled and united as to make 1t an mpossiblty
to sell out and do each portion of the road justice in
the matter Of division of rolling stock, equipments,
etc.
Prominent in this litigation the Central Trust
Company of New-York stands as o buIwark against
speedy adjudication John Thompson representing
the Central Trust Company made the opening speech,
In which he reviewed the history Of the Wabash ltga
ton from the time Of the assignment to the squabble
the funded debts and the extension Of 1865.
He showed the complicated nature Of the system,
running It does through three States and said the
100000 mortgages OF 1875 executed TO Alfred I.
White and the note for So 900 900 executed In 1879
to Lndley Humphreys, were the greatest difficulties
to overcome The court had gone over this ground
so often that Judge Gresham thought it unnecessary
for Mr. Thompson to continue.
Governor Chamberlain, of New-York. representing
the PopperJohnson committee of bondholders, who
took exceptions TO the masters report that
the sale cannot be made owing to the comminglng
Of interests, made q long speech. When he touched
upon the matter of settlement between the opposing
factions Of ltgants, tho coart smiled looked about.
the big fat man in the middle Of tho first row
Of Jurors shaking his sides and asked tho counsel pres
emit II this could be done.
at will shorten matters considerably and har-
monte the feelings Of the interested parties you
agree to this proposition" Judge Gresham said
Governor Chamberlain replied that he was willing
to confer and make overtures for an agreement on
the matter OF the funded debt and extension Of 1865
General Hubbard and Henry Crawford, Of the Pur-
chasing Committee Mr.. Turner, representing the
Farmers Loan and Trust Company, and Colonel
Blodgett, Of st. Louis connected with the Wabash,
agreed 10 confer II they could do so smicably.
sob you can, gentlemen said Judge Gresham. II
you desire, viii that you all coraled, and
viii keep o watch over you"
The arrangement was satisfactory. So United
statcs Marshal Marsh took possession Of the court
room, and tho counsel got down to work.
n the Judges decree the sale Of the property the
consolidated company is to execute hrstclass mort
gage, amounting to S34oo0Ooo, payable in fifty
years from November 1, 1887 The new company e
also TO execute a second mortgage all its lines and
property east OF the Mississippi River 10 the amount
OF SI4,DO0,000. Bonds amounting 10 S3,00O,OOO OF
this Issue are appropriated for the retirement OF the
New-York and Pacific Car Trust certificates, and II &C
copied by the Car Trust Company, the entire rolling
stock owned BY that company, costing originally
about So 900 900, win be covered b. the second mort
gage as q first lien. The overdue coupons OF the
second mortgages and funded debt Of the same With
interest TO November, 1897 and the overdue coupons
OF tho consolidated mortgage and its funded debt, az
well as the overdue coupons OF the Mortgage 1s OF
1872 10 DO paid in first and second mortgages, wiz Dc
about IS 900 per mile less than the hen on the old
rrsts and seconds on the lines which they cover