The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-06-23
Railroad Passes Into Control
of Great Railroad Wizard
Following Public Sale at
Noon Today.
NO COMPETITION FOR
OWNERSHIP OF ROAD
But One Bid Received by the
Court Officer and This for
Minimum Figure Improve
ments Will Be Made.

Interests representing the Hawley
syndicate of railroads purchased the
G. C. & L. and all its holdings at pub
lie sale this afternoon at the North
End depot. the consideration being the
minimum Of $5,2OOOOO fixed by tho
federal court as covering the indebt
edness Of the old company.
Although two young attorneys from
New York. Gilbert Cannon and Carl
Remington appeared as the buyers. the
presence OF Carl Taylor of New York,
personal counsel for Mr.. Hawley and
other lawyers representing the c. &
o. group of fnanciers. gives proof that
the road is to become . part Of the
great transcontinental system that
includes q half dozen Of the most i'm.
portant trunk lines In the country.
: The sale was consummated according
to predictions, there being but the one
bid. A. large group of corporation
lawyers and capitalists were present at
IL o'clock when Noble G. Butler, OF
Indianapolis, special master in chan.
Gerry appointed by the United States
court to have charge OF the sale. an
nounced that offers would be received.
Fifty minutes afterwards the ofiicer of
the court declared the road oficially
sold.
It develops that the Chesapeake &
Ohio interests have practically owned
the road for over year. having bought
up the second mortgage refunding
bonds at that time for between 50 and
60 cents on the dollar. In January
Of this year. Receiver James P. Good.
rich issued 81, ,4OOO 900 Of receivers Ger.
tificates, and these were taken up by
the same interests. making their total
holdings worth three million at par.
Represented Bond Holders.
Attorneys representing the first
mortgage bondholders we're present.
but everything indicated that a deal
already had been framed between
their clients and the buyers. H. M.
verrill and Seth Carter. both Of Port
land, Maine, were here for the first
mortgage holders. Carl Taylor. Chas
Curtis and Norman Erb Of New York
City, all Hawley men, represented the
other interests. In addition to these
Receiver Goodrich, w. A. Bradford
president and builder of the c. c. & L.
Henry O. Starr, vice president and gen.
eral counsel. G. G. Shirley. attorney fol
the receivership, and Frank Little
ton Of Indianapolis, general counsel
for the Big Four system, were present
at the sale.
The total indebtedness Of the rail
road at the present time. including
the first and second mortgages and
the receivers certificates Is $5,154.00O
which amount is covered by the bid
It 10 divided as follows: First mort
gage bonds. Cincinnati. Richmond and
Muncie. $S04.000: Chicago and Cincin
natl. $750.000 and Cincinnati and In
diana Western. 100000. Second
mortgage refunding bonds. $1,000. 900
and receivers certificates, $1,400.000
In addition. the court will fix the
cost Of the receivership when all ne
gotiations have been closed and the
formal transfer is made.
Consultation At Capital.
Immediately following the sale the
ers left for Indianapolis. where q con
sultation was scheduled for later II
the afternoon. The receivership endi
on July I and the formal transfer o
the property probably will take place
at that time, meanwhile the work o
improvement inaugurated by the Haw
ley interests will 60 forward steadily
Under the management Of James r
Goodrich. receiver. who took charg'
of the road on February II, 1908. busi
ness has grown rapidly. The gros
revenue In 1907 amounted to 100000
This was increased under Mr.. Good
rich's management to $1.300,000 IL
1908. For the fiscal year ending Jul.
!. 1910. the gross earnings will hav'
reached $1.600.000.
The sale OF the c.. c. & L to tn,
Chesapeake and Ohio viii connec
what IL known a. the Hawley line
and give through line from Newpor
News. Va. to Chicago and from New
port News to St Louis by way Of tn,
Clover Leaf with connections q
Marion.