The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1889-05-22
THE WABASH ROAD SOLD
THE SYSTEM EAST OF THE MIssIs-
sIPPI RIVER DISPOSED OF.
Bought I'm by the Purchasing Committee
for s15,55o.oOO-Pians for the Reorgnni-
zation of the system-Financial Prospects
of the Property iu the Futurs

The wabash Hallway east OF the Missis-
sippi River has been sold at foreclosure sais
at Chicago for Sl5.550.UOO. This is probably
the most important railway foreclosure sale
which ever took place la this country. Ii
was expected that there would be IA hitch in
the sale on account OF the fact that on four
oil the nine divisions AN upset price. equal
10 the amount oil the first and second mort
gage bonds. was fixed by the decree OF tho
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 IA. Hubbard, and Edgar ~
Welles.
Tue sale was conducted by Major BIuford
Wilson. OF Springfield. ILL.,. and A. j. Kicks,
OF indianapolis. the special masters APP
pointed by Judges Gresham and Jackson.
Alter Mr.. Kicks read the notice OF sale Major
Bluiord Wilson announced that the sale
would first take place by divisions. on tour
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 appraisement or redemp-
ton. according 10 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 IL its proportion OF
the rolling stock and equipments in tho
exact proportion that its mileage bore to
tho total mileage OF the whole 800 miles OF
mileage Of the Wabash Hallway east or the
Mississippi.
The first division put up for sale was the
Toledo and Illinois Railroad known as the
Ohio Division, running from Toledo 20 tho
Indiana State lire. "A distance OF seventy
live 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 rs the Lake
Erie, Wabash and st. Louis Railroad was
next called. This division runs through
Indiana a distance OF l66 miles. and tue up
set price was S3.4Sl. 9l9S9. Here the John
son and Peppers dissenting committee
showed its hand and bid S365O. 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 $50 miles from tho
Indiana State line TO the Illinois River mt
Meredosia and Naples. The upset price was
S3.fSl 9l9oJ. and IL was also Knocked down
10 >. Fisher Johnson on behalf of the John
son and Pepper committee for S3.65O.0 O0
The next division put up for sale was tho
Decatur and East st. Louis Railroad, run
ming from Decatur to East ST. Louis. dis
lance of 1OS miles. The upset price was
2.SlG.l2S.31. The Johnson and Ponper com
mlitee also got this line on its sole bid of
S4.0D.O00.
The remaining divisions had no upset
price fixed by the decree OF sale. The fret
put up for sale WAS the Quincy and Toledo
Railroad. extending from Clayton. ILL.,. 20 "A
point opposite Meredosia. on the Illinois
River. "a distance of thirty-four miles. Here
Mr.. James I. JOY, representing the bur-
chasing committee OF the Wabash bond
holders. came TO me front and bought tho
property for s5UO.OOJ. The mortgage debt
was SG64.000.
The Illinois and Southern Iowa Railroad.
extending from Clayton TO Carthage. H.. a
distance Of twenty nine miles. was sold to
James +. JOY for the Wabash Purchasing
Committee tor S3O0.0OO. The mo- tgage debt
was S39S,0OO.
The Hannibal and Naples Railroad. ex-
tending from Hannibal 10 Naples. ILL.,.
distance of fifty miles, was also Knocked
down 10 Mr.. James L. Joy for his purchas-
ing committee for S500OOO. The mortgage
debt was S599.00J.
The next property sold was tho branch OF
six miles extending from Clayton TO Camp
Point. Mr.. james j. Joy and his commit
tee got it for $5O0JO.
The branch road If six miles from Car
thage. H.. TO Elvaston. Ill.,. was sold TO Mr..
James +. JOY and his purchasing commit
tee for $1,000.
All but the Ohio division had been sold.
and the failure TO sell il would have neces-
STATED an adjournment To Judge Gceshams
court room Tor mobilization OF IA decree
as to the upset price fixed. Major Wilson.
however, said That he would expose this
division for sale again. This time Mr..
James +. JOY bid $3.50. 595.6S. the upset
price, and the road was knocked down 10
HIM and his purchasing committee.
The aggregate bid for all the nine dvis-
ions now amounted To S15.5ij.Js5 MAJOR
Wilson here announced that un1er tho
terms OF the decree of sale tie casters
would now put mp the whole nine divisions,
including, under their direction the Ham
nj hal AN all I'm
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 i. JOY. for the purchasing
committee OF Wabash boudhoiders. bid
$15.jJ5.OOJ, which WAS .405 more than the
aggregate OF the sale by divisions. and the
road was knocked down 10 the purchasing
committee. The amount of deposit required
was 100000. or SlU0.uUO on each Of the nine
divisions. The deposit is in bonds. but tho
Court will call upon the purchasers TO pay
in any cush required TO pay oil the Si.UO.OO0
of dissenting bondholdcrs and any neccs-
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 1 IL 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
have been formed hy consolidation of the
various divisions. The name OF the con-
solidation will be the Wabash Railroad
Company. and it IL expected that Mr.. .. 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 10 the
first and second bondholders OF the old
road and for the payment OF the S4OOOOOO
to the first mortgage bondholders who re-
fused to come into the reorganization
scheme. The second mortga will also
cover the whole consolidated line. and Will
provide for an issue Of debenture bonds TO
cover about S27 ,OOO. 900 OF bonds secured by
the mortgage OF June, 1880. on which
SfO0OO,OOO OF bonds were issued. as we'll
as for the collateral trust mortgage OF
SIC. 00O.000.
Five years ago. on May %. the whole OF
the Wabash system. east and west OF tn o
Mississippi River went into the hands OF
Humphreys and Tut az receivers. lt'owed
seven or eight million dollars of floating in
debtedness. and coull not pay the interest
on its gencta al mortgage OF 1880 or on its
collateral trust mortgage. The lines west
OF the Mississippi have since been reorgan-
lied aud are now under the control o. the
purchasing committee, and since the re-
ownership as 10 them terminated by the
sale of March. 1856. they are said 10 have
done remarkably well. aud TO be now earn
ing their fixed charges and a surplus.
With the amalgamation OF the lines east
81. tha