The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1889-05-23
THE WABASH ROAD SOLD
THE SYSTEM EAST OF THE MISSIS-
SIPPI RIVER DISPOSED OF.

1
OF the Property in the Future.
[Chicago dispatchl
The Wabash Railway east of the Missis-
! slppl River has been sold at foreclosure sale
at Chicago for $15,55O,0OO. This is probably
the most Important railway foreclosure sale
which ever took place in this country. II
was expected that there would be hitch in
the sale on 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,
ana the road was sold to the purchasing
| committee of the Wabash bondholders
| composed of james F. Joy. O. d. Ashley,
General Thomas II. Hubbard. and Edgar Il.
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 MI. 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 the
nrst and second mortgages. The sale
would be without apprasement or redemp-
ton. 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
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 it's mileage bore to
the total mileage of the whole 900 miles Of
mileage of the Wabash Railway 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 the
Indiana State line. distance of seventy
five miles. On this division the upset price
was $3.50. 595. 6S. There were no bidders.
and the division was passed.
The Indiana Division, known as the Lake
Erie, Wabash and ST. Louis Railroad, was
next called. This division runs through
Indiana distance Of 166 miles, and the up
set price was IS. 48l, 1889. Here the john
son and Peppers dissenting committee
showed it's hand and bid $3,650OOOO0. The
division was declared sold to S. Fisher
johnson on behalf of this committee.
Inc third division put up for sale was the
Great Western Railroad Company of 1852
running distance of $50 miles from the
Indiana State line to the Illinois River at
M M, re. and Naples. The upset price was
81, 4o1 ,919.09. and it 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, Il dis
lance of 1OS miles. The upset price was
S2.Sl6.l 1881. The Johnson and Pepper COM
mlttee also got this line on it's sole bid of
$4.OUO,O00.
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 d
point opposite Meredosia, on the Illinois
n Of r, ;,,@,-
Mr.. James f. Joy, representing the pur-
chasing committee of the Wabash bond
holders, came to the front and bought the
property for $5O0,OO0. The mortgage debt
was $664.OO0.
The Illinois and Southern Iowa Railroad,
extending from Clayton to Carthage. ILL.,, u
distance Of twenty nine miles, was sold to
James F. Joy for the Wabash Purchasing
Committee tor 100000. The MOI tgage debt
was $39S, 900.
The Hannibal and Naples Railroad. ex-
tending from Hannibal to Naples. Ill.,. a
distance of fifty miles, was also knocked
down to Mr.. James T. Joy for his purchas-
ing committee for S5O0,OO0. The mortgage
debt was S599, 900.
The next property sold was tho branch Of
six miles extending from Clayton to Camp
Point Mr.. James F. Joy and his commit
tee got it for $4,000.
The branch road Of six miles from Car
James Z. 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 modification Of d decree
as to the upset price fixed. Major Wilson,
however, said that he would expose this
division for sale again. This time Mr..
James F. JOY bid S2.S40. 5956S, the upset
price, and the road was knocked down to
him and his purchasing committee.
The aggregate bid for all the nine divis-
ions now amounted to $15.54U.cS5 Major
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. I'm case
the bid now made exceeded the 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 bondhoders. bid
$15,55O00O, which was S9405 more than the
aggregate of the sale by divisions. and the
road was knocked down to the purchasing
committee. Tae amount of deposit required
was $780, 900, or 100000 on each of the nine
divisions. The deposit is in bonds. but the
Court will call upon the purchasers to pay
in any cash required to pay off the S4,000.000
of dissenting bondhoders and any neces-
sary expenses. By this sale every obstacle
to the consolidation of the Wabash road
east and west Of the Mississippi River has
been removed. By July 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 it is expected that Mr.. o. ID.
Ashley will be it's 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 and for the payment Of the $4,000. 900
to the first mortgage bondholders who re-
fused to come into the reorganization
scheme. The second mortgage will also
cover the whole consolidated line. and will
provide for an issue of debenture bonds to
cover about $27 zoo, 900 of bonds secured by
the mortgage of June, 1880. on which
$1O00O,0OO of bonds were issued. as well
as for the collateral trust mortgage of
$40 100000.
Five years ago. on May %. the whole of
the Wabash system, east and west of the
Mississippi River, went into the hands Of
Humphreys and Tut as receivers. It@owed
seven or eight million dollars of floating in
debtedness. and could not pay the interest
on its general mortgage of 1880 or ON it's
collateral trust mortgage. The lines west
of the Mississippi have since been reorgan-
lied, and are now under the control OF the
Durch aSinp committee. and since the re-