St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-03-22
WABASH REORGANIZATION.
Opening of the Great Suit in
United States Court at Chi

United States Court at Chi
cagO.
CHICAGO, March 21.-The United
States court room was crowded to-day
with distinguished gathering of rail-
way attorneys, representing various in
terests in the Wabash railway. This
case was before Judges Gresham and
jackson (the latter the United States
circuit judge for the Ohio and Ken
lucky circuiD for the hearing of the
masters reports and exceptions thereto
on the application for a decree of sale
upon the plan of Reorganization adopted
by the purchasing committee APP
pointed in 1856. The purchasing COM
mittee, which bought the Wabash. st.
Louis & Pacific railway under the fore
closure of the general mortgage, con-
sisted of James +. Joy, of Detroit, Gen.
o. III. Hubbard, o. ID. Ashley and Ed
gar Il. Wells. of New York,
all of whom were present. Gen.
Hubbard and Rush Taggart, of New
York, represented the committee as
counsel. "All but 81, OO0, 600 of the $685.
100000 outstanding has come in," said
Mr.. Ashley, of the committee, land the
committees plan of reorganization is
tiOn." The morning session was con-
sumed by the argument of James ThOm-
son. of Foster 81 Thomson, of New
York, representing the Central Trust
company, the holders or the CONSOLE
dated rs of 1867, to whom the bond
holders asserting to the plan of reor-
ganization, bring their complaint.
Gov. Chamberlain. of New York.
Tor the Johnson-Pepper committee
of bondholders, representing the
first mortgage and funding debt.
izaton plan. followed Mr.. Thomson.
but court adjourned for the noon re-
cess shortly after the beginning of his
argument. John w. Butler, of Indian
apolis, ex-senator Joe McDonald'S law
partner, is attending the hearing in the
interests of the stockholders of the In
dianapOliS division, running from In
dianapOliS to Peru, who lately prose-
cuted a successful suit against the re-
ceiverS for back rents, and now ask a
reserv alton decree to preserve their
rights. Harry Crawford will be heard
in the interests of the trustees for the
stockholders of 1879; MIR. Taussig, of
st. Louis, representing the mortgage
trustees of the Decatur 81 Fast st.
Louis railroad; T.. +. Sharb, for the
holders of the Great Western first
mortgage; John G. Milburn, of Buff
falo, and e. E. Doyle. of Toledo. for
he equipment bondholders, whose
holdings are involved in the competent
suit" and Herbert Turner, of New
York. for the Farmers Loan and Trust
company, trustees of the second mort
gage.
At conference of the opposing dele
gates this afternoon decree of sale
satisfactory to all parties was virtually
agreed upon. Judge Gresham suggested
that counsel retire for conference. and
following out this suggestion meeting
was held in Mr.. Thomson's room at the
Grand Pacific. The result was that the
representatives of the various interests
agreed on the terms of decree settling
some points of difference. so that sale
can take place without interfering
with their rights in the property
which can be settled after the SALE Mr..
Thomson made the following state
ment as to the agreement: SIT looks
now as though there would be no eX-
tended contest as was anticipated, and
that the decree will be entered. It has
been under discussion this afternoon,
and with some modific tions has been
substantially agreed upon, all excep-
tons being overruled. The property
will probably be sold first in parcels or
divisions, subject to resale as an en-
tirety. and if it brings more as unit
the sale as unit will be firm, if less,
the sales in parcels will be carried out.
There are nine divisions. The agree
ment will be presented in court to-
morrow