St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-03-21
ANxIOUSLY WAITING.
Many Leading Railroad Men
in Chicago Attending q.
S. Court.
The Wabash Case Will Be
Called To-Day, and Hence
Their Presence.
It Is Believed That the Old
System Will Shortly Be
Reunited.
Present Legal Status Of the
Roads Forming the Sys-
tem--0pinions.

CHICAGO, March 20.-Bondholders
and big lawyers were plentiful in Chi
cago hotels tonight awaiting the final
proceedings in the great Wabash litiga-
ton to open here tomorrow. Nearly
five years have elapsed since the Wa
bash road went into bankruptcy.
the hands of receivers June
l. 1884. The Wabash Western,
or lines west of the Mississippi river,
emerged June 1, 1887, and the lines east
as the result of to-morrow's hearing
Will, it is asserted, probably be released
IN less than three months. The pur-
chasing committee having authority
from majority of the bondholders to
buy in both portions of the road-James
+. Joy, OF Detroit, and Thomas Hub
bard, ID. Ashley and Edgar T. Wells, of
New York-are among the swarm
of interested notables now in Chi
cage. The quartette appear conf
dent that they will now witness
the consummatfon of their labors in the
discharge from bankruptcy of every
mile of the road and the complete re-
organization of the system. The pur-
chasing committee bought in all lines
under the general mortgage in April,
1886, so that further sales east of the
river are under the underlying first and
second mortgages. These mortgages,
with accumulated interest, amounted
February l, of this year to S2S, 1868, $40,
OF which amount the purchasing COM
mlttee represented over S25,000,00O So
large were the holdings of the committee
that the minority conceded the futility of
contesting the proceedings at that time
offered but little opposition to the fore
PIOCnrn nd
third mortgage bondholders and about
two-thirds of the first mortgage bond
holders are in favor of the reorganiza-
ton. This leaves one-third of the hold
ers CT the first mortgage bonds, repre-
senting one-third of S11 100000, opposed
to the scheme. They also re here and
will now before Judges Gresham and
jackson contest the reorganization COM
mlttee' SprOgramme. The purchasingcom-
mittee's plan which, the members will
proceed tomorrow to carry out, is to
perfect the sale of the Chicago division
ana to reorganize the remaining divis-
ions, namely, the main line from Toledo
TO hannibal and from Decatur to st.
Louis. 1t is expected by the committee
that Judges Gresham and jackson, to
whom application for an order of sale is
made, will order it to take place under
the first and second mortgages. Allow
ing thirty days for advertising, this
would set the sale of the main
line for about April 81, so that
should the sales in both cases
be confirmed the entire system
east of the Mississippi river would be
in the hands of the purchasing commit
tee May 1, and under control of the
Wabash Western by June 1. This
would add to the Wabash Western 956
miles of road and reunite under one
management the big system which two
years ago was cut in twain by Judge
Gresham. Ex-Gov. Chamberlain, of
South Carolina, oneof the leading coun-
sci for the opposition to what he de-
scribes as ''the scheme of Mr.. Gould
and his associates" said to-
night: "The outstanding one
third of the first mortgage bonds
holders insist that if the Reorganization
is effected it will only be by the new
organization taking up the stock at par
and by paying per cent on the bonds.
We do not care to be in the new road, |
preferring to sell out at the figures
named The case will probably continue
through several days, and will decide
whether this one-third of the first mort |
gage bondholders can be forced to ex-
change 7per cent bonds at par for Scent |
ones, which will retain them in the