New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-09-02
FORECLOSURE ASKED For.
ACTION AGAINST THE TOLEDO Ann ARBDR
AND NORTH MI HIGAN
THE FARMERS LOAN AND Trust COMPANY
ASKS TO BIZ PUT ~ POSSESSION, or THAT
ANOTHER RECEIVER BF APPOINTED
IBY TELEGRAPH TO IHk IRlbUNEI

ASKS 10 BIZ prr IN POSSESSION. OR THAT
ANOTHER RECEIVER RE APPOINTED.
lBY TELEGRAPH TO THE TRIBUNkl
Toledo Ohio. Sept l-After having WITH
stood the vissitudes of prolonged and un-
usually hitter fight with the Brotherhood OF Loco
motive Engineers last spring. and having the
satisfaction Of seeing their road reorganiZed under
the administration OF receiver. James VI. Ashley
and his three sons may ace the railroad propeiF
which they have built up slip from their hahnS
4 bill Of foreclosure under mortgage o' NoV"'-
cao was filed to-day in the United states Circuit
Court by the Farmers Loan and Trust COMPANY
Of New-york against The Toledo. Ann Arbor and
North MICHIGAN Railroad Company The craig
Shipbuildiug Company. and John Craig OF Toledo
are made parties To the action II was Ui"uS"
the efforts Of The Crags that Wellington X Burt
OF Saginaw. Mich. appointed receiver M
Crsias have "A claim through the transports used by
the road in ferryrg across Lake Michigan from the
terminus al Frankfort The bill Of complaint asks
for A receiver and an accounting ~ the road $
property prior 20 4 -sle and IT Is understooh
that An effort VIII b" made - d"pose Receiver huf
The bill fled IL in substance a. follows. on
January T. 1890 the Roard Of Directors of the Ann
Arbor road issued 1000 bonds - 5000 each se-
cured bv a mortgage deed upon m" ontr" lin" 10
the complainant company Of those bonds, 'V'
were to be exchanged f1r existing bonds covering
tho different divisions OF the road as folio"
81 2OO0D dated October ID lssp on the Sorth Lyons
branch: xl2uDp September IA. 1885. on the 81.
Louis and Michigan branch: 10000, September l..
1895 on the Nj Pleasant branch. ana SLAe"p.
Iuno lo 1876 on the Cadillac branch. Tho balance
of the. bonds were to be used IA construction and
additional terminals. Nonc Of the bonds lsSu"o
To refund outstanding obligations has been eN-
changed for the divisional bonds. ana they are
in the hands Of the complainant. OF IN others
the Trust Company has negotiated bonds ass''b"-
ing Si3iI.p)p ,..l, 90, ,,ss.
bonds to the amount Of N19'' uloi "hisn i, M .,'e
hsve co-opnratcd with the complainant ana hlrd
their petitions for tn" sale Of IN" roai III "tli't
r,seod condition Of the road. tn" complainant -
trustee cannot execute its trust Ia The manner pro
yded In the mortgage without the aid oi the cout
II Therefore ASKS TO p" pHt II l", ,,r M ,ra
have the road placed in tho hands oi receiver ana
ing the railroad company or MS at'nls 'oi' , ~.
any way. interfering with the possession OF me
property
J. NJ Ashley jr vicc-prcsidont Of the Toledo
Ann Arbor and North Michigan Railroad 'omIan;.
when the di~patch shown To him AT thc L"tos
club last night said, This Is the first have heard
Of any such action and II the dispatch is tru" the
rnovo is ridiculous for it would be quickly con
tested and as quickly defeated. Under AN agree
mont in thc mortgage. proceedings for for"closui
can onl, begin siN months after deiauit mas r''i,
declared 40 such action has been authoil%e'
in responsc to question as to what WAS hcne
done 10y the hOndholders ana Sto'kh'''''S
Of the road. Mr. Ashley said.
"A reorganization committee. which wil con
clude its labors about the middl" OF pct"pct' hhs
been planning a new organization which Will h'
acceptable 10 all parties ana 10 All interests ms
committee is practically IN ch1rgc q" an
Stockholders and will make friendly arrange-
ucnts with III" creditors 'he cause oi dclloh
and by that time thu organization viii prob
ably be arranged