Crawford avalanche. (Grayling, Mich.) 1879-19??, 1889-05-23
THE WABASH ROAD SOLD
THE SYSTEM EAST OF THE MISSIs-
sIPPI RIVER DISPOSED OF.
Bought In by the Purchasing Committee
for S15,55O, ,OOO-Plans for the Reorgani-
zation of the System-Finanoial Prospects
of the Property i'm the Future.
Oh

for rS16,6BO,OOO-Plans for the HoOrRant-
zation of the System-Finanoial Prospects
of the Property i'm the Future.
lChicago dispatch.I
The Wabash Railway east OF the Missis-
sippi River has been sold at foreclosure salI
at Chicago for $15,550. 900. This Is probably
the most important railway foreclosure sale
which ever took place In this country. It
was expected that thore would be hitch in
the sale or account OF the fact that on four
Of the nine divisions an upset price. equal
to the amount OF the first and second mort
gage bonds. was fixed by the decree OF the
sale. No trouble was experienced. however.
and the road was sold to the purchasing
committee OF the Wabash bondholders.
composed of James +. JOY. o. ID. Ashley.
General Thomas II. Hubbard. and Edgar 4.
Welles.
The sale was conducted by Major Bluford
Wilson. OF Springfield. ILL.,. and A. j. Kicks.
OF indianapolis, the special masters ap-
pointed by Judges Gresham and Jackson.
Alter Mr.. Kicks read the notice Of sale Major
Bluford Wilson announced that the sale
would first take place by divisions, on four
OF which the court had fixed an upset or
minimum price equal to the amount OF tho
first and second mortgages. The sale
would be- without appraisement or redemp-
tion, according to the decision OF the Su-
preme Court OF the United States. which
held that there was no redemption in fore
closure sales OF railroad property as the
franchise OF the railroad company was also
sold. Major Wilson also announced that
the terminal properties would go with the
adjacent divisions, and that each division
sold would carry with it it's proportion OF
the rolling stock and equipments in the
exact proportion that its mileage bore to
the total mileage of the whole 900 miles OF
mileage Of the Wabash Hallway east OF the
Mississippi.
The first division put up for sale was the
Toledo and Illinois Railroad. known as the
Ohio Division, running from Toledo to tho
Indiana State line. "a distance of seventy
five miles. On this division tho upset price
was $3.50. .595.69. There were no bidders,
and the division was passed.
The Indiana Division. known as the Lake
ErIe, WuuHsiI anu Gt. Lvui1 RssiirOui,
next called. This division runs through
Indiana distance Of 166 miles. and the up
set price was 80, .919.S9. Here the John
son and Peppers dissenting committee
showed its hand and bid $3.659. 10000. The
division was declared sold to s. Fisher
Johnson on behalf OF this committee.
The third division put up for sale was the
Great Western Railroad Company Of 1859.
running distance Of 180 miles from the
Indiana State line to the Illinois River at
Meredosia and Naples. The upset price was
So. .4S1 ,919.09. and il was also knocked down
to s. Fisher Johnson on behalf of the John
son and Pepper committee for $3,65O.OOO.
The next division put up for sale was tho
Decatur and East st. Louis Railroad. run
ming from Decatur to East st. Louis. u dis
tance OF 108 miles. The upset price was
$2.Sl6.12S.31. The Johnson and Pepper COM
mittec also got this line on its sole bid OF
S4,0J0,000.
The remaining divisions had no upset
price fixed by the decree OF sale. The first
put up for sale was the Quincy and Toledo
Railroad. extending from Clayton. ILL.,. to
point opposite Meredosia. on tho Illinois
River, a distance of thirty-four miles. Hero
Mr.. James +. Joy, representing the pur-
chasing committee of the Wabash bond
holders. came to tho front and bought tho
property for S5OO.OOl The mortgage debt
was S664. 900.
The Illinois and Southern Iowa Railroad,
extending from Clayton to Carthage. ILL.,. a
distance Of twenty miles. was sold to
james +. JOY for the Wabash Purchasing
Committee tor S3O0,0O0. The MOI tgage debt
was S39S. .0C0.
The Hannibal and Naples Railroad. ex-
tending from Hannibal to Naples. ILL.,, u
distance of fifty miles, was also knocked
down TO Mr.. James L. Joy for his purchas-
ing committee for $500,0OO The mortgage
debt was $599,OOJ.
six miles ext ending from Clayton to Camp
Point Mr.. james +. Joy and his commit
tee got 1t for $5O.0OO
The branch roal Of six miles from Car
thage, Ill. to Elvaston, Ill.,. was sold TO Mr..
James +. Joy and his purchasing commit
tee for $4,000.
All but the Ohio division had been sold.
and the failure to sell it would have neces-
STATED an adjournment to Judge Gresham's
court room for a modification OF a decree
as to the upset price liked. Major Wilson.
however. said tnat he would expose this
division for sale again. This time Mr..
James +. JOY bid $3.50. 595.68. the upset
price. and the road was knocked down TO
h m and his purchasing committee.
The aggregate bid for all the nine divis-
fn,s ~ Mafnr
Wilson here announced that under the
terms OF the decree of sale the masters
would now put up the whole nine divisions.
including, under their direction. the Han
nibal and Naples Road. for sale. In case
the bid now made exceeded tho aggregate
OF the bids for the various divisions the
whole Wabash Road east of the Mississippi
River would be knocked down to the high
est bidder
Mr.. James F. Joy. for the purchasing
committee OF Wabash bondholders, bid
SIS, $50, 900, which was .405 more than the
aggregate of the sale by divisions, and the
road was knocked down to the purchasing
committee. The amount of deposit required
was 100000 or 500 600 on each OF the nine
divisions Tho deposit is in bonds. but the
Court will call upon the purchasers to pay
in any cash required to pay of the S4.OOO.0OO
Of dis senting bondholders and any neces-
sary expenses. By this sale every obstacle
to the consolidation of the Wabash road
east anu WeSL Oh INC ImlSSlbblppl hlNoE mas
been removed. BY July 1 it is expected that
the divisions in the various States OF Michi-
gan, Ohio, Indiana, and Illinois will have
been organized. and the great trunk line
from Detroit and Toledo to Kansas City will
have been formed by consolidation Of the
various divisions. The name of the con-
solidation will be the Wabash Railroad
Company, and IL Is expected that Mr.. o. ID.
Ashley will be its President.
First and second mortgage bonds cover
ing the whole line will be issued The first
mortgage will provide for new bonds to the
first and second bondholders OF the old
road aud for the payment OF the $4.0O0.O00
to the first mortgage bondholders who re-
fused to come into the reorganization
scheme. The second mortga9e will also
cover the whole consolidated line. and will
provide for an issue OF debenturo bonds to
cover about $27 600. 900 of bonds secured by
the mortgage OF June, 1880. en- which
SIC. 10000 OF bonds were Issued. as well
as for the collateral trust mortgage OF
$10.000,0OO.
Five yoars ago. on May 2s. the whole of
the Wabash system, east and west Of the
Mississippi River, went into the hands OF
Humphreys and Tut as receivers. 1t owed
seven or eight million dollars OF floating in
debtedness, and coull not pay & the interest t
on its general mortgage OF 1880 or on Its
collateral trust mortgage. The lines west
OF the Mississippi have since been roorgan-
ized, and are now under the control OF the
purchasing committee. and since the re-
ceivorship as to them terminated by the
sale OF March. 1886. they are said TO have
done remarkably well. and to be now earn
ing their fixed charges aud a surplus.
With the amalgamation OF the lines east
and west OF the Mississippi. the former
OF which were acquired by the pur-
chasing committee at this sale. the
reorgnnized system will find itself re-
lieved OF its non-paying branches. tho In
terest on it's entire funded debt reduced
from to per cent. Also. its former fixed