Amador ledger., 1908-08-28
LONE AND EASTERN r. q.
CHANGES HANDS.
Bought in for the BondhoIders for
S225,00O.


S225,000.
Last Saturday sheriff Gregory,
according to published announcement
sold The lone and Eastern Railroad,
to satisfy a judgment obtained in the
superior court of Amador county for
the sum of S423, 217.40 in favor of the
Union Trust Company OF San Fran
cisco. At the sale there we're present
from the outside Charles Erickson,
q. Peterson, the contractors of the
road, also G. Fessier, John RaggIo,
the receiver, under whose manage
ment the road has been operated for
the past year, and Frank j.. Solinsky,
the attorney of the judgment creditor.
There was but one bid, and that was
made by attorney Solinsky for the
sum Of S225, 900. as trustees of the
bondholders. The property was sold
for that bid.
AS we are informed the property
sold represents the entire holdings of
the lone and Eastern railroad, IN
cluding franchises, right of way, real
estate, rolling stock, stages, wagons,
horses, etc, everything except a GER
tain electric pole line between Mar
tells and lone, which is the subject
OF a separate judgment by Fred Rabb
against the company, which judgment
it is understood the purchasers will
pay off.
The only exception is a contract
with the American River Electric
Company, which 1t is presumed the
purchasers were not anxious to buy.
The difference between the amount
bid for the road and the amount of
the Judgment is Sl99,2l7.4O. The ex-
it, is that the parties interested in
the Judgment held 1856 bonds of the
corporation out of total issue of
800 bonds at $1,000, representing $500,
600; the difference between the face
of the bonds and the judgment being
represented by default in interest
payments. So that practically the
bondbolders take the road in salts
faction of their claims. The holders
of $4,000 of bonds outside the judg-
mRDt will have to take per rata, the
same as the judgment creditors in eX-
tinguishment of their claims.
The sale is an out and out one. and
the purchasers take possession as
soon as the receipt for the purchase
price is given, and the sheriH's deed
is issued thereon.
If is not like the foreclosure of an
ordinary mortgage, which allows one
year to the debtor in which to re-
deem. In this case the Union Trust
Company forecloses a trust deed, in
behalf of the bondholders.
Under the receivership it is said
the road has been operated at a small
profit. Previously it had been a
losing proposition from the start, and
with a bonded Indebtedness of $500,
O0) there was no possibility of pull
ing out, making improvements and
extensions which are deemed abso
lutely necessary to put the road in
position to pay.
With all the Indebtedness wiped
out, the new owners will be in posi-
tion to issue new bonds tor improve
ments and extensions and will not
be handicapped with heavy liability
under the original issue of bonds.
Altogether the change ought to
prove benefit to the county in
general, the travelling public and
shippers. Rumor has it that arrange
ments will be made to extend the line
to the timber region, as this step is
considered necessary to making 1t
renum erative investment. The eX
tensive filings upon the timber land
in the mountains indicates some
thing of this kind. In the practical
management of the road there is not
likely to be any change. The officials
under the receivership have managed
it efficiently and economically, and
given the utmost satisfaction to all
concerned.
What is Best for IndigeStion?