New-York tribune., 1909-03-19
MET. UNDER HAMMER
JUDGE EL4COMBE'S DECREE
Road Mast Pay Within 20 Days or
BE 4uctioned off June /.

The property or the Metropolitan Street Railway
Company will be sold foreclosure on June i, &C
cording &c q decree filed yesterday by Judge La
combe in the United States Circuit Court in the
foreclosure proceedings Instituted by the Guaranty
Trust Cor1lpany- The company brought these pro-
cee6ings trustee Of the sl2.500oo9 general col
lateral trust per bonds on which the interest
was defaelted in February Of last year me de-
cree gives the Metropolitan Street Railway Com
rany twenty days within which TO pay 10 Comnls-
sioner Shields Of the court. .S1S.5Ss2I0 So
with interest per cent, in default of which pay
fnent William L Turner. special master. is directed
sell tire companys property at public auction 10
the highest bidder.
The foreclosure decree does not include the Cen
tral Park North & East River Railroad Company
the Twenty-eighth & TWenty-ninth Streets Cross
Town Railroad Company and the Fulton Street Rail
road Company. and 1hese roads VIII not be sold
The owners Of the Central Park. North & East
River Railroad Company at present operating
the road having taken It over when the receivers
Of the Metropolitan defaulted the lease The
Metropolitan receivers have also abandoned the
operation of the other roads by order Of the
federal court. Both roads in the hands OF re
ceiver<. and foreclosure suits are pending
II is generally expected that the bondholders VIII
bid IN the Metropolitan Street Railway Company
when il is offered sale bur definite plan OF
reorganization Of the property has as Yet been for
r7lIia.ed Alexander J. TFemphiIl acting president
Of the Guaranty Trust Company, who Is chairman
Of the committee Of bordholders representing the
said lest night that the committee was hu'S
collecting data but had drawn up plan Of action
Edwin 6 8arston. president Of the Farmers
loan and Trust Company. is chairman Of the com
-uittee which represents the holders OF the SiooV4
q 400 refunding mortgage per cent bones, Inc
Morton Trust Company. trustee brought SUIT 10
foreclose in November 1907. Both protective COM
rnittees ere acting unison in an attempt TO oIlng
about reorganization Of the property
Theodore p. Shonts president Of the Interhorough-
Metropolitan company. which acquired s+27fo,ooo
rf,e stock of the MefTopoiltan
street Railway Company at the time Of the traction
merger intinated recently that the Interooroush-
Metropolitan might bidder for the Metropolitan
at the foreclosure sale Mr.. Shonts spoke al the
sine ~ the nossibjlitv Of evyng a voluntary as
essnne11t on the fnteraoroug metropolitan preferred
stock holders raise the necessary funds 10 buy 1he
Metropolitan. The plan. however, Is not looked
upon likely 10 through
Judge I.acombe's memorandum, which was hed
with the decree after providing for the obtaining
Of the fullest information about the property sad
The date of sale fixed at June IN order that
one Hlio wishes to review any 81 1Ie
l. rresent the same the Circuit Court OF Ap-
n csuse seisT in the presentation hearing OF
such appeal, which viii be given preference IN
RE pTepertv hereby directed 20 be sold shall be
subject 10 all taxes assessments oI IIs ~ - 49,
of any person persons. corporation or corpora. @
herein specifically directed 10 be paid out oI me
finder tbe right reserved 10 the purchaser to re-
ftSe TO adopt any particular lease CT tranc agree
n,ent il is impossible that one or more OF liie
leased lines may be thrown on. but the coufI Is
unwilling this Of the proceedings TO peFlIt
coupefe dsintegTatiOE of the system TO 90
So would nut il in the power OF the owners OF
rosds which are now money makers for the system
TO IA Ike them 50 far the Court may
he able preserve the road as a going concern, II
shoHld do =,
of sale to pay fun the amounts herein directed
70 paid of such proceeds prior 10 me pFlh-
cipal and interest secured by the mortgage 10 the
complainant the Court reserves the right from time
10 time 10 require the payment Of the deficiency.
by the purchase under this decree In the event
Of refusal omission of any purchaser TO pay
She amount required to be paid within lhlrty
DAYS the Court reserves the right TO refake ana
resell the proDerty- sold under this decree TO such
purchaser. and u apply the net proceeds OF such
resale te- the payment OF the deficiency with
which such purchaser clargeable. rendering unto
such purchaser the surplus. IL any.