Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1905-05-18
Republican Central Committee
Blue Mountain Iron and Steel
Company.

On Thursday last Referee E. Y. Goldsbor.
ough heard argument in the U. 8. Court
Room in Baltimore, relative to the sale of
the Furnace property. The trustees having
by order of U. S District Court Judge
Morris) sent out and had published, notices
warning all creditors to show cause, If any
they had why the sale should not be made by
the trustees in bankruptcy, said sale to he
made free, clear and discharged of all liens
The defunct corporation soon after the &C.
QUESTION of the Furnace plant, set to work
to capitalize the plant at an enormous figure
They issued Tor was supposed to issue) $500,
600 worth of stock and 100000 worth Of
first mortgage bonds. The mortgage was
given on all the lands and on all the personal
property to secure the bond issue. $4,000
worth of the whole issue Of bonds are held
by the estate Of VIM. r. Rainey, deceased,
the balance is scattered among number Of
small banking institutions in Pennsylvania,
New York and elsewhere. 1t Is conteuded
by the unsecured creditors that the whole
issue Of 100000 worth of be nds is spurious,
aud that the same were issued without any
consideration whatever. A small number
of these bondholders. contend that the Bowl.
ing Green Trust Co., of New York, trustee
under the mortgage should sell under fore
closure proceedings, instead of the trustees
IN bankruptcy. and it was tins argument
that referee Goldsborough was hearing on
last Thursday. the hearing Of which was
concluded on Monday.
Allied with few of the bond holders, con
tending against the trustees was; Henry e.
Terry, of Philadelphia, who has, for the past
two wears, been the principal obstructlonist
fighting against the sale OF the furnace, and
who, is now fighting for delay, and thus
helping to further cripple and destroy the
early usefulness Of Catoctn. This same
Henry &. Terry was responsible for the case
of Wircman, Portner Ct al Us. Blue Mount.
ain Iron and Steel Co., being carried to the
Supreme Court OF the L. S. where he met
reversal ofjudgment.
day last that his object in fighting the sale
of the furnace by the trustees in bankruptcy,
was for the purpose of securing II delay in
the sale.
1t Is confidently hoped that referee Colds
borough, who will report the findings to
Judge Morris, will order sale by the trustees
and that Judge Morris will sustain these
findings. Terry, from past tactics will
doubtless again appeal, and the sale of Ca.
toctn may, in that event, be delayed as
much as q year.
1t is too bad that such aggrayating itiga
ton must 5e tolerated. 1t is "dog in the
mangcr" tactics, and If it is at all possible 1t
should not be allowed. Catoctn is q valua-
bic property and what we want to see, is a
modern furnace erected there and run, as
other furnaces are. Money can be made
there, and with the Wabash railroad, coal
and coke can be gotten here cheaper than
ever before. Raw material is on this prop
erty in abundance, and we earnestly hope
that this litigation may soon end, so that
this community may receive benefits from
the operation of a furnace plant, which will
give employment to several hundred persons.
This with additional railroad facilities will
make Thurmont flourish as never before,
but, we must wait and see what Henry G.
Terry, of Philadelphia Is going to do before
we grow optimistic.