The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-10-09
OPTIONS ON RAILROADS.
A 1RICT TO MAKE MONEY OUT OF
4 'REoRGANrzED COMPANY.

Pians--A Lease Had Been Msdo 70 the
g., II. sad D.-Mow's this. Col. Bricss
Tho Reorganization Committee Of the Gin
cinnati. Jackson and Mackinaw Railroad cx-
pected that the affairs Of the company would
be entirely adjusted by this time. The fore
closure sale came of on Tuesday In Ohio and
| 1t thought, as matter OF course. that therc
would be no other bidders besides the COM
| mittee and that IL would bid 10 in for nominal
figure. But they are surprised lot OF gentle
men. Some outsiders came up and got away
from the committee the Cincinnati. Van Vert
and Michigan division by outbiddinn them
after the representative OF the committee had
bought In the northern division.
The ridiculous part OF the transaction was
that tho Cincinnati. Hamilton and Dayton
had agreed to lease the Cincinnati. jackson
and Mackinaw. guaranteeing tho principal and
interest of $%,90o.O0 four por cent bonds. The
Reorganization Committee has now lost tho
title to the middle and more valuable division
OF the Jackson and Macklnnw road. without
which the northern part would be OF no con-
ceivable use to the Cincinnati. Hamilton and
Dayton road
Nearly oil the securities of the Cincinnati.
Jackson and Mackinaw road were deposited
with the Central Trust Company under the re-
organization plan. and tho ownors Of tho GER
tilcates issued against them may. perhaps.
hold the committee responsible for the plan.
Including tho guarantee Of tho bonds by the
Cincinnati. Hamilton and Dayton road. The
Reorganization Committee was much put out
about the trick whom Mr.. Fred Brown. who
represented tho committee at tho sale. first
informed II what had happened. but the men,
bcrs think they SEQ u way out Of II.
MIR. Brown explained yesterday that the par
ties who bought In the middle division wore
ostcnsibly the income bondholders. who had
refused to participate in tho plan Of reorsani-
zation Thoy took this action simply as o
blum. Mr. Brown said that the committee had
offered to sell the property to the income
bondholdcrs for S1.387,OO0. which was tho
amount Of the bonds with accrued interest
Whom he saw his opponents at the sale
he suspected something wrong. he said.
The income bondholders were represented
by Gen. ]. A. Rice and Attorney Mar
bic. son Of the former President.
They seemed to think that Mr.. Brown was
youth: but they made mistake. They let
him have the northern division on bid OF
So.5o0.OOO without opposition: and then when
he bid 100000 for the central division they
raised him to $1.042. 900. He lot them have It.
Perhaps they expected he would demand that
tho road DO afterward sold as whole so that
he might got It by bidding more than the sum
did nothing The SnS but Rs eSv as them
shancs to t their deposit Of $4,000 for
We shall now see very SOON" said Mr..
Brown. whether this is bona fde offer. II
g IN committee NIT Nv will be very glad 70 accept
line which It can do cheaper and better, But
the bid Is absurd; for. as said. we offered the
ssa SEEMS stEsnse that fRe f bonds
OF the road ere selling at Is when people. ap-
bar and i1tsrest On te one ~ tb %eTS 5nan
t. bat FL S.a road b t. 0ho viii DO the first
sent $500 out Of the entire $4,000 81 In
proved the reorsanizatien plan: fhsse bondRs
the equivalent in stock in the new organlza-
=, haye no doubt that the parties that bid in
/ be central division thouEhtthat an option on
%is$t thns out q fna f fRss tssy
d de IMAGINED that the COMMITTEES would
dSjay q dsSs But in this sHs9 VIII
Mr.. brown would not say whether it was
COL nf sas SaS f
or to %h az ona sys
But he would neither affirm nor deny It yester::
It Is that The should
Tie q story is that Col: Brloo was exceedingly
Mackinaw road as an outlet for the Lake Erie
and Western to the Northwest. At any rate |
and Dayton from getting II. This has been
known Tor months past The Cincinnati. Jack
'unities for flnanciering. and 1t might be made
: paying Investment for tho managers. II not
ior the stockholders.
But the scheme, whatever it was has failed |
he REORGANIZATION Committee says, and 1t is |
'nly aqueston OF time before the road is placed
On its feet again |