New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-24
READING RAILROAD SOLD.
PURCHASED BY c. II. COsTER FOR THE
REORGANIZATION COMMITTEE
THE SALE MADE UNDER FORECLOSURE IN PHiLA-
OBSERVATION-DISCLOSURES FILED on BEHALF
or MRS. HETTY GREEN.

DELPHfA-PROTEsTs FILED on BEHALF
or MRS HETTY GREEN.
Philadelphia Sept 2S-Thc auction sale OF prop.
critics OF the Philadelphia and Reading Railroad anu
Coal and Iron Companies. under the foreclosure II
the general mortgage. as directed by the Cniten
States Circuit Court. took place to-day. Inc saie
was conducted In the old Reading passenger sun
ton at Thirteenth and Calowhill SITS. There "ers
about 200 persons in attendance al 10 a. m VIE"
the assets in the hands Of the receivers when are
not covered by the general mortgage bonds
were offered 10 the highest bidder Among those
present were President and Receiver Joseph > mar
ris and Receiver John Lowber Welsh. OF the keau-
ing companies: Directors George +. Baer, OF kean-
ing. and Colonel James Boyd of Philadelphia T.
w Whtridge OF New York counsel for the Read
ing Reorganization Committee. &. II. Coster. OF
Ncw-York a member OF the banking firm Of J. p.
Morgan & CO.; Francis l. Stetson. CT New-York.
counsel for j. Pierpont Morgan; ex-Judge Campbell
general solicitor for the Reading Railroad. and
Samuel Dickson and Thomas Hart. jr, solicitors
for the company George l. Crawford. special mas
ter in the Reading receiversh!p. and William X.
Taylor secretary Of the company
The assets were offered in three separate parcels.
The only bidder was G. II. Coster. representing j.
p. Morgan & CO. the heads OF the Reading Reor-
ganization Committee. and he the purchaser ~
the three lots for $4,000 Mr. Coster deposited
$4,000 10 bind the purchase-$lOOG0 on each lot
The first lot embraced the right title and interest
of the Philadelphia and Reading Company in secur-
tiles the par value Of which is <lj5sf.5o These So
curties pledged collateral security for the
payment Of issue OF ti00J0e0 collateral trust
bonds. The sale included the interest Of tho re-
ceivers in the collateral trust bonds we'll as in
the shares and bonds pledged 20 secure the pay
ment thereof Mr.. Whtridge. on behalf Of Mr.. Cos
ter bid 5000 900. and the assets were knocked down
70 him conditonally
The second parcel included stocks and bonds
owned by the railroad and coal and iron companies
the total par value Of SCI 25723 The stocks and
bonds subject to various pledges. Mr.. Coster
secured this lot for 81 cD)co0 cOnditionaily.
The third lot comprised the right. t,ie and inter-
est Of the railroad company in and 20 TWO certain
bonds Of the Coal and Iron Company. and also in
certain claims against the Coal and Iron Company.
amounting In the aggregate 10 s6ss79.;35. Mr. Cos
ter also secured this lot condltionally for 100000
The condition upon which the separate sales were
made was that they were 10 be finally put up as
unit When this was done Mr.. Costcr. although
unopposed bid $3.50 900 for the total increase OF
500 COO and the lots knocked down TO him
the larger figure.
During the progress Of the sale Rober: L. Luce.
OF Neu-York on behalf Of Mrs. Hetty Green. Of
Ncw-York large holder Of Reading securities.
formally protested against the sale on the ground
that IL was illegal Mr. Luce filed bill In the
United States Circuit Court to-day TO this effect
The property Of the railroad and coal and iron
companies that is covered by the general mortgage
was sold foreclosure sale this afternoon 10 MI.
Coster. of New-York for slG.O00Vo Mr. Costor.
through J. T. Morgan Co. represents the Read
ing REORGANIZATION Committee. This sale was also
conducted at the old Reading station. and when u
began at noon. the number OF spectators had ma
terSlly increased The property was divided into
three lots and they brought respectively S,5o"oOO.
s. 800 900 and 81 OOo 200 As the this MORN
ing Mr. Coster's bids opposed
The first lot embraced railroad lines. and the
leasehold interest in other lines. real estate. lo0-
90 shares of coal and iron company stock 'par
value $50 EACH. and stocks and bonds Of lines
leased or controlled by the Reading Railroad and
deposited with the trustee Of the general mortgage.
The par valuation of'this lot placed at s2-
The second lot comprised coal lands. coal leases,
iron lands. furnace properties and other real
estate and stock of corporations owned by the
coal and iron company but subject 10 a prior
pledge by the railroad company.
The third lot comprised securities pledged
curity for the general mortgage by certain recon-
struction trustees Of the Philadelphia and Read
ing Company. ,.
Mrs. Hetty Green 10 the foreclosure sale on the
ground of iegaty Notice was also given on be-
entered into between the city and me Reading
Railroad for the construction Of a subway would
things and that the city Of Phadephia as trus-
tee under the will OF stephen Girard would not
which have been leased to the Reading Thomas
n Walker. trustee under a mortgage given ny the
man Meyer. Schall and Reed coal tracts. road
notice Of the priority Of this claim. Mr.. Walker
also on behalf Of William u. Fa her. trustee under
$4,000 mortgage given by the Reading for the
Eagle Hill coal 'ract. read similar notice
The afternoon sale which was the most impor-
tant part Of the proceedings. occupied only forty
minutes The total par value Of the property dis
posed OF at both sales is said 10 have been s2o0-
10000
Under the reorganization the annual charges OF
the Reading will be lessened $1l1 900 The present
fixed charges OF the railroad and coal and iron
companies aggregates Sl0.O350I3. and under the re-
organization they will be s93l7.l73