Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-10-04
SPECIAL MASTERS
REPORT ORDERS
SALE OF ROAD
TO M0RIARTY
Important Findings in New
Mexieo-c entr al Albuquer-
que Eastern Litigation ,
81, 2o0,0o0 Bonds Invalid.
DECISION PAvEs WAY TO
SETTLEMENT or AFFAIRS


bonds % tire amount Of twelve hum
dred thousand dollars issued By the
Albuquerque Eastern Reiiwns COM
pany. prior % its mcrEer with the
santa Re Central, and delivered TO q.
G.. Murray, receiver Tor the Enter
prise National bank 90 Pittsburgh,
are invalid and not "a binding opiiga-
tion against the company, That Mr..
Murray. az receiver OF the bank. re-
fuA knowledge OF their invalidlty.
that NJ W. FlournOy. receiver Of the
Dominion Construction company. and
J.. Van Ncchtcn Olcott. receiver OF
the FCrEusOn COnstructinn company.
should be declared 60 have a first
lien upon the property Of the Albu-
quorque Eastern railway owned by
the said company az the time OF its
merger with the New Mexico Central
Railroad, and that the said properly
should be sold by an officer OF the
court and that the proceeds OF said
sale. after deducting the usual costs.
TO the extent OF SlSN.3OQ should be
paid over 10 Mr. Fiournoy as receiver
Of the Dominion Construction COM
pany, any sum remaining 20 be di-
vidcd among the creditors of the New
Mexico Central Railway company.
Tho report Of the special master.
which Is regarded as a victory for the
receiver 81 the Dominion Construc-
ton company. represented hy Nciil
T.. Field Of Albuquerque, Il IA said
is an important step in paving the
way to the sale Of the New Mexico
Central and Albuquerque Eastern
property and the settlement Of the
long pending litigation over its some
what tangled affairs
Jg4ge Collins report goes into the
history Of the New Mexico Central
and Albuquerque Eastern. Il recites
the contract under ", l,h the Penn
sylvnnia Development company was
to build the latter road from Mor-
arty 60 Albuquerque for $500 cash
IN hand and stock In the railroad
company to the amount OF $i,i93,000.
together with si.g0O.0 600 ia f5-year
AZ the rate Of per cent per annum.
Al the time this contract was made.
The special master finds, the Albu-
Iucrque Eastern had no OUTSTANDING
Indebtedness This contract was
made In 1894 and the Development
prosecuted the work OF con
until June. 1895. grading a
road bed for eighteen miles westward
from Moriarty and ten miles east
ward from Albuquerque. or seventeen
miles less than the amount necessary
10 complete the line from AlbuQuer-
Tue 10 Moriarty In June. 1905. owing
.o lack Of funds. the company was
forced to discontinue ana abandon
he work.
From this date little was done to-
ward the construction of the Albu-
Iuerque Eastern until september Of
gOS. when a. l.. Richmond APP
ncared on the scene, and the work
VAS carried on by the Dominion Con-
strpction company until March rs.
9Og. when the company suspended
operations owing % the alleged fail-
are Of the New Mexico Central COM
lnny to make the payments provided
'or In the agreement.
Judge Collins concludes his report
With the following findings and con
Illusions OF law;
THAT the contract Of January G
sos. by ana between the Dominion
Construction company and the New
Mexico Central Railroad company.
ma al the facts In evidence taken
together. gave 10 the Dominion Com
'truction company the possession of
The Albuquerque Eastern Railway
company and an equitable Hen there
IN for the compensation To which
he said Dominion Construction COM
lnny was entitled"
Conclusions of law.
In summing up the CONCLUSIONS 81
aw. Special Master Collins submits
he following based upon the findings
zee out In the report:
IL That the bin of complaint OF
ne Pittsburgh Trust company plain
I'M w. the New Mexico Central Rail-
road company. 90 al. defendants. No.
i6l5, should be- dismissed for want OF
80 That the cross-compiainants
NJ. W Flournoy, receiver OF the Doe
minion Construction company, and j
Van Nechten Olcott. receiver OF the
Ferguson Contracting company bank
rupt. should bc declared Go have "a
'iTht lien upon The property owned by
Inc Albuquerque Eastern Railway
company az the time of the merger OF
the Santa Pc Central Railway COM
pany Nltn the Albuquerque Eastern
Railway company
-. That a decree OF sale Of the
Eastern Railway com
pany's right-of-way and property real.
personal and mixed, whatsoever sit-
1nte, should DO entered, and said
property should be sold Ia itH entirety
ly an officer OF this court and aften
deducung from the proceeds of said
safe the expenses Of administration
he balance remaining not, however
I'm excess of the sum of SlsNi 900, shall
De paid over 60 the receiver OF tho
Dominion Construction company for
among the creditors and
stockholders thereof That should
there be sum remaining in excess OF
said sum OF ttS6,500, said sum bd
held ln the registry of this court and
distributed among the general cred
TORS of the New Mexico Central Rail-
road company as the court may order
ANA direct in lts order OF distribution,
-. That in cuse the said sale 81
Tho Albuquerque Eastern Railway
company should not realize, after the
payment ~ Tho expenses OF admins
tratiou OF this couri. "a sum SUFFICIENT
90 make sum equal 90 tiSS.H 500 tho
Dominion Construction company,
through lts 3treiyer, shall Dee entitled
to present its claim iu behalf oi said
company on any FUNDS nor otherwise
of us general creditor oi
the New Mexico Central Railroad
company for the amount OF said de-
ncli.
"5. That iho succoasful bidder az
said sale shall Dee required 20 deposit
with the referee and special masten
ON the acceptance " his bld sum or