The herald., 1893-09-19
THE RECEIVERS CERTIFICATES,
A Perplexing Question in the
Cable System Sale.
Commissioner Francis Thomas Is Be-
tween Two Brisk Fires.
The Points Upon Which He Asks Judge
Van Dyke for Special Instruc-
tions - Two Sets OF
Appeals.

Some perplexing points have been
raised in the cable road foreclosure case,
and were made the subject OF motions
yesterday in Judge Van Dykes court,
as was exclusively stated by the HERALD
would be done in Sundays issue.
At 2 O'Clock attorneys representing
different interests were present, and
Francis Thomas, commissioner for the
sale OF the cable system, presented q
lengthy document setting forth the
points upon which he desired to be in
structed.
He asked for a rule, order or supple
mental decree prescribing his duties
and powers in making a sale of the
mortgaged property, and determining
and instructing him whether or not the
appeal now pending in the supreme
court from that part of the decree of
foreclosure relating to receivers certifi-
Gates operates as a stay of proceedings.
If not, whether the sale of the road is to
ceivers' certificates to be paid by the
purchaser, or whether the certificates
ehsll be paid by the commissioner out
of the proceeds Of the sale to be made
by him.
The commissioner makes the applica-
tion on the ground that the decree of
foreclosure is uncertain and conflicting
in its provisions upon this matter, that
come of the questions are judicial and
should be passed on by the court.
1t will be remem bered that at the time
Of the decree foreclosure rendered by
Judge Van Dyke q few months ago,
there were a number of receivers certi-
ficates outstanding, which were being
contested, some on One ground, some on
another. These certificates were for
expenses incurred by the receiver in the
management of the cable system, and
were for various amounts, footing up
several thousand dollars.
The bondholders endeavcred to stop
the issuance of receivers certificates,
which were held to have a priority of
all other liens on the property. Their
efforts did not succeed in Judge Wade's
court, as he ruled against them.
At the time OF the final decree of FORE
closure was rendered appeals were
pending in the supreme court from
Judge Wade's rulings, involving some
OF the certificates and finally all.
Judge Van Dyke was asked to provide
in the decree that when the cable sys-
tenn was sold, the purchaser should as
eume any of the certificates shat would
be binding and pay them off afterwards.
This was objected to by the certificate
holders, and Judge Van Dyke ruled
favorably on the priority of the lien of
the certificates, including in the decree
that the purchaser should pay such GER
| tificstes 20 days after they should be de-
termined to be legal.
But a curious legal question arose.
The appeals that were pending were
taken before the decree was rendered,
and it has transpired that the orders
were not appealable. They were not
appeals from the decree. but from sepa-
rate orders by Judge Wade prior to that
time.
The real truth OF the business is that
the bondholders were fighting against
the piling up of this receivers indebted
ness in the shape of the certificates he
was asking to be allowed to isere. They
took the appeals for the purpose OF
showing fight and to prevent, if possi-
BILE, the issuance of any more than
could be helped.
|
the court, they contend, in taking an
they used all the weapons they pos-
sensed, intending, if the appeals were
not allowed, to appeal again from the
final decree by Judge Van Dyke if neces-
sarv. d.
They succeeded by their course in
somewhat tying up the certificate bust
ness.
After the final decree of foreclosure
was entered the bondholders took new
appeals from that portion of it which
established the prior lien OF the certlfi-
Gates.
The attorneys for Che certificate hold
ers then moved the supreme court to
dismiss the frat appeals. The supreme
court has recently held that the appeal
from the decree will lie, and has granted
the motion to dismiss the former ap-
peale.
Now the certificate holders claim that
the first appeals having been dismissed
Commissioned Thomas must pay them
their money when the road is sold, and
as soon ae it is sold.
But the bondholoers contend that the
last appeal is q gooo one and operates
as stay until it is finally determined
whether their contention is good one
or not.
1t is upon these questions that the
hearing was begun before Judge Van
Dyke Yesterday afternoon. Commits.
eioner Thomas asked for the instructions
from the court as to what to do in this
matter, and the bondholders urged their
right for stay until the supreme court
passes on their appeal.
Owing to some proof which some OF
the attorneys desired to present, the
hearing WAS continued until this morn
ing, when it will be taken up again.
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ally eold as medicines, are permanently
Injurious. Being well informed you will