The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1908-09-10
THE STEAM PLANT.
Exceptions Dismissed and Sale Confirmed
by the Court.

In all opinion filed on Monday
Judge Evans dismissed the excep-
tions filed by bondnolders of the
Steam Heating Plant to the confir-
nation of the sale made by the re-
ceiver. The opinion gives all the
facts, and it is printed in full.
The Judge says:
"On June 80, 1890, the Blooms
burg Steam and Electric Light
Company caused to be executed
and recorded a first mortgage
against its property to 1. w. Nc
Kelvy and VIM. Neal, as Trustees
to secure a series of bonds aggre-
eating $40, 900. The exceptants
are holders of some of these bouds.
November ~, 1907, the receiver
was authorized by decree of the
Court to borrow the sum of $500
and issue certificates therefor which
should be first lien upon the prop
erty of the said company and should
re first paid out OF the proceeds of
any sale of the property of the COM
pany. July 80, 1908, upon the Pc
tition of the receiver rule was grant
ed upon 1. w. McKelvy, the sur
viving trustee, for the bondholders
named in said mortgage, to show
cause why the property of the said
company should not be sold freed
and discharged from the lien of the
said mortgage returnable August 3,
1908. By paper In writing bearing
date July 2S, 1908, w. McKelvy,
the surviving trustee named in said
mortgage, agreed that the real es-
tate of the said company should be
sold by the receiver freed and di-
vested from the lien of said mort
gage. The question as to whether
the surviving trustee had any right
or power to make such agreement
we will not pass upon at this time;
neither is it material to the matter
before the Court.
Subsequent to the return of the
rule on August 6, 1908, the Court
ordered and decreed that the receiv-
er, John M. Clark, make public
sale of the real estate and franchise
of the said company freed and dis
charged from all liens and incum-
brances. Pursuant to said order
and decree the receiver OH the 24th
OF August, 1908, made return that
alter having given due notice as di.
rected by the Courts order that he
sold the real estate of the company
free of all liens and membranes
ON August 22, 1908, to John I.
Tracy and Arthur w. Sharpless for
the sum of $1,000; that they were
the highest and best bidders and
that tie highest and best price bid
den for same. The return of sale
was confirmed nisi on the same
day. August 2S, 1908, the follow
Ing exceptions were filed to the re-
turn of the sale: The undersigned,
Paul +. Writ, c. M. Creveling and
William Masters, holders of bonds
secured by first lien mortgage on
the real estate and franchise of the
Bloomsbury Steam and Electric
Light Company, hereby file excep-
lions to the confirmation absolute
OF the return of said sale because
the receiver making said sale ex-
posed and sold the same free of all
liens and membranes. Whereas
IN point of fact the mortgage exc
Suted by the said company to l. w.
McKelvy and William Neal, trus-
tees, bearing date the goth day OF
June, 1890, recorded in mortgage
book III, page 255, given to secure
series of bonds of $4,000, OF
which the undersigned are holders
OF bonds, was the first lien upon
SAID premises the lien of which
mortgage was not, and could not
nave been discharged by said sale,
Perhaps 1. w. McKelvy, the
surviving trustee for the holders OF