The herald., 1896-12-27
A DECREE OF FORECLOSURE
Filed Against the Atlantic and Pacific
Railroad
But the Management Still Has Thirty
Days to Raise Two and Half
Million Dollars.

SAN FRANCISCO, Dec. 26.-The
final decree of foreclosure and sale of the
Atlantic and Pacific railroad was filed
in the United States circuit co''rt today
This is the last Of a series of similar de-
between the same parties and for the
same action in every district in which
the Atlantic and Pacific has property.
| 1t is ordered that unless the sum of
| 81, $50, ,s43.1 .16 was paid by the railroad to
| it's debtors within thirty days, the en-
| tire property shall be sold at auction at
Gallup, Bernalillo county, NJ NJ.
The foreclosure proceedings were in
stituted by the United States Trust
company Of New York to recover the
interest on an issue of bonds. The bonds
were in two sets, aggregating the sum
| of SIG, 900, with interest at per cent,
payable annually. The issue was held in
| and was known as the mortgage on the
western division of the railroad. A Sec
ond issue, with terms similar to the
first was taken by the Boston Safe
Deposit and Trust company.
The suit came up in the United States
circuit court in this city on October s..
1895. before Judge Ross, who appointed
| the case at Los Angeles. Marion has
| filed his report, and consequent there
upon Judge Ross has filed the decree
| just mentioned.
The bonds, aggregating s12, 900, 900 and
| delivered to the Boston Safe Deposit
and Trust company, have been decided
to be subordinate to the first ISSUE
1t has been decided by the court that
aIfter the proceeds df the sale have
hppn rppaiVal
| tribute to the holders of the first mort
gage bonds the sum of $50, ,S23 so, the first
balance due. 1t is further ordered that
unless the debt of the railroad be paid
within thirty days, the sale shall take
place as above mentioned, the proceeds
to be used in the liquidation of the debts
of the corporation.
" VERY LIGT TRAFFIC
CHICAGO. Dec. 26.-The roads run
ming out of Chicago were very much dis
appointed over the amount of the holiday
| traffic. 1t was smaller than for sew
eral years past, and the general opinion
has ben that it would be heavier than
ever before. The Canadian excursion
business, over which there has been such
row, and which usually reached it's
climax at Christmas time, has panned
out not over so per cent of the usual
amount, and proves not to have been
worth all the fighting and squbbling that
the western roads have been doing with
the 500" the Canadian Pacific and the
Joint traffic lines in oredr to secure what
they ysconsidered their proportion of the
business.
WI WILL BRIG SUIT
SAN FRANCISCO, Dec. 26.-Attorney-
General Fitzgerald is preparing to bring
suit against the Market-street Railway
company on behalf of the board of rail-
road commissioners to establish the
question of the commissioners jurisdic.
ton over street railroads. AS yet the
railroad commissioners have not been
formally or officially informed of the at
torney- generals intentions 1t became
known today that the encouragement
is preparing a case against the street
railway company, and from the nature
of the proceedings it promises to develop
into a big legal fight, not exceeded in
importance by the grain rate case, which
is pending before the United States cir
cuit court.
The contemplated suit i'll determine
the right of the commission to reduce
street railway fares in this state from
fivec entS to three cents