The age-herald., 1899-09-12
Rendered in ChanCery on Cross Bill
 of the MARYLAND TRUST COMPANY Original Bill Filed by Myra K. SemmeS
 and Others. WILL HELP THE REORGANIZATION But it is Claimed Will be Disastrous to the Stockholders of the Elyton
 Land Company-Cant
 Develop Property
ILL HELP THE REORGANIZATION

decree was rendered yesterday in the chancery court directing the sale of the property of the Elyton company to satisfy the dividend trust bonds of the Elyton Land company and the first mortgage bonds of the Elyton company to the amount of several millions dollars. The decree was rendered on the cross bill of the Maryland Trust company to the original bill of Mrs Myra K. Semmes. ad- ministratrix and others. asserting equal priority and right as the holder of $1 500 900 of the dividend trust bonds and the claim of a forfeiture under the terms of the mortgage, as trustee of the first mortgage bonds.
 The court finds and adjudges the amount due under the mortgage to be $2, 726, ,S02. .0S and under the dividend trust fund 1884, amounts are paid within twenty days the register shall sell all of the property of the company after four weeks notice.
 It is also provided that the property must be sold in two parcels follows:
 First-All real estate notes and real es- tate received as proceeds of such sales. which is subject to the lien of the dividend trust bonds.
 Second-The remaining real estate notes and others chosen in action and property of every description covered by the mort gage.
 The decree further directs that the sale shall be made without valuation, appraise- ment, redemption or extension, to the high est bidder or bidders at the court house door on day and at an hour fixed by the register. The terms of the sale are also set out requiring deposit of $50,000 as a bidder and a cash payment of 10 per cent. of the purchase price.
 The foreclosure is made on the claim of the petitioner that the mortgage provides for same if default in the payment of taxes was made, which it is alleged was done prior to June, 1898, and that on July 1, 1898 the company also defaulted on the payment of its semi-annual interest installment and was insolvent at that time.
 The decree is quite lengthy and sets out under the foreclosure.
 hsIory or the CHse brief history of the case can be sum- med up as follows:
 The Elyton Land company some years ago issued S2,400,G00 of 6 per cent. bonds, known as dividend trust bonds, which were secured by real estate motgage notes to that amount, and afterwards reduced to $1, ,OO0 by payments and retirement.
 When the Elyton Land company sold its property to the Elyton company, part of the consideration, the Elyton company agreed to issue it's first mortgage , per cent. bonds to retire the dividend trust bonds. All of these bonds except SIPS, 900 were exchanged and Thomas J. Semmes and Henry c. Tompkins, holders of $9,- 900 of the dividend bonds, brought suit to have preference declared in favor of the unexchanged bonds The Elyton company, the Elyton Land company and the Mary land Trust company were made defendants to the bill. Messrs Semmes and Tomp- kins both died after the commencement of the suit, which is being prosecuted by their executors.
 The Maryland Trust company as the holder of the larger part of the dividend trust bonds, and as trustee under the Ely ton cCmpany's mortgage, filed cross bill asserting equal priority and right of all of the dividend trust bonds, whether ex- changed or not, and on this cross bill Chan cellor Carmichael rendered his decree.
 While the effect of the decree will be dis astrous to the stockholders of the Elyton Land company it will materially aid in the reorganization of the Elyton company and place it in position to develop it's proper ty.