Democratic Sentinel, Volume 13, Number 18, Rensselaer, Jasper County, 24 May 1889 — THE WABASH ROAD SOLD [ARTICLE]

THE WABASH ROAD SOLD

THE SYSTEM EAST OF THE MISSISSIPPI RIVER DISPOSED OF. Bought In by the Purchasing Committee for • 13,550,000—Plaint for the Reorganization of the System—Financial Prospects of the Property lu the Future. [Chicago dispatch.] The Wabash Railway east of the Mississippi River has been sold atforeelosure sal* at Chicago for $15,550,900. This is probably the most important railway foreclosure aale whichever took* place in this country. It was expected that there would be a hitch In the sale on account of the fact that on four of the nine divisions an upset price, equal to the amount of tho first and second mortgage bonds, was fixed by the decree of the sale. No trouble was experienced, however, and the road was sold to the purohasing committee of the Wabash bondholders, composed of James F. Joy, O. D. Ashley, General Thomas H. Hubbard, and Edgar T. Welles. Tne sale was conducted by Major Bluford Wilson, of Springfield, 111., and A. J. Ricks, of Indianapolis, the speoial masters appointed by Judges Greshum and Jackson. Alter Mr. Kicks read the notioe of sale Major Blutord Wilson announced that the sale would first take place by divisions, on *our of which tho court had fixed an upset or minimum price equal to the amount or the first and second mortgages. The sale would be without appraisement or redemption. according to the decision of the Supreme Court ot tho Untied States, whioh held that there wus no redumption in foreclosure sales of railroad property as the franchise of the railroad company was also sold. Major Wilson also announced that tho terminal properties would go with tho adjacent divisions, and that each division sold would carry with it Its proportion of tho rolling stock and equipments in the oxact proportion that its mileage bore to the total miloago of tho whole 900 miles of mileage of tho Wabash Railway cast of tho Mississippi. The first division put up for sale was the Toledo and Illinois Ilailroud, known as tho Ohio Division, running irom Tolodo to the Indiana State lino, a distance of sovontyilve miles. On this division the upset price was $2,840,595.69. There wore no biddors, and the division was passed. The Indiana Division, known ns tho Lake lirio, Wabash and Bt, Louis ltailroud, was next culled. This division runs through Indiana a distance of 166 mllos, and tlie upset price was $8,481,919.89. Hero the Johnson and l’oppors dissenting committee showed its hand and bid $3,650,000.00. The division was declared sold to 8. Fisher Johnson on behalf of this committee. The third division put up for sale was the Great Western Railroad Compuny of 1859. running a distance of 180 miles from tho Indiana Htute line to the Illinois River at Meredosia and Naples. The upset price was $8,481,919.89. and It was also knooked down to H. Fisher Johnson on behalf of the Johnson and Popper committee for $3,650,000. The next division put up for sale was tho Decatur and East Bt. Louis Railroad, running from Decatur to East St. Louis, a distance of 108 miles. The upset price was 916,128.31. Tho Johnson and Popper commuteo also got tills lino on its sole bid of $4,000,000. The remaining divisions hud no upset price fixed by the decree of sale. The first put up for sale was tho Quincy and Toledo Railroad, extending from Clayton. 111., to a point opposite Morodosla, on the Illinois River, a distance of thirty-four miles. Hero Mr. James F. Joy, representing the purchasing committee of tho Wabash bondholders, dime to tho front nnd bought tho property for $500,009. The mortgage debt was $664,009. The Illinois and Southern lowa Railroad, extending from Clayton to Carthage. 111., a distance of tWenty-nlne miles, was sold to James F. Joy for the Wabash Purchasing Committee tor $390,009. 'The mo; tguge debt was $398,090. The Hunnlbnl and Naples Ilailroud. extending from Hannibal to Naples, 111., a distance of fifty miles, whs also knocked down to Mr. Juiiiui F, Hoy for his purchasing committee lor SSOO. .09. Tho mortgage debt wus $599.90>. The next property sold was tho branch of six miles ext ndi ig from Clayton to Camp Point. Mr. James 1. Joy nnd his commit--10 ) got it f >r iiW. .0)0. The i ranch ioal«f six miles from Carthage, I i., t > 1 lv SiOa. ill,, was sold to Mr. James F. Joy and his purchasing committee for $ ;0,000. All but the Ohio division had been sold, and the failure to sell it would have necessitated an adjournment to Judge Greshum's court-room lor a modification of a decree as to the upset price fixed. Major Wilson, however, said tnat he would expose this division for sale again. This time Mr. James F. Joy bid $2,849,595.68, the upset price, and tho road was knocked down to aim and his purchasing committee. The aggregate bid for all the nine divisions now amounted to $15,540,595. Major Wilson here annonneed that under the terms of tho decree of sale the masters would now put up the whole nlno divisions. Including, under their direction, the Hannibal and Naples Road, for sale. Incase tho bid now made exceeded tho aggregate ol the bids ior the various divisions the whole Wubash Road oast of the Mississippi River would be knocked down to the highest bidder. Mr. Jumos F. Joy, for the purchasing comlnlttee of Wabash bondholders, bid $15,550,909, which was 119,405 more than the aggregate of the sale by divisions, and the rood was knocked down to the purchasing committee. Tne amount of deposit required was $900,000, or SIOO,OOO on ouch of tho nine divisions. Tho depo-it is in bonds, but the Court will call upon the purchasers to pay in any cash required to pay off the *4,000,000 of dissenting bondholders und any necessary expenses. By this sale every obstacle to the consolidation of the Wabash road east and west of the Mississippi River has been removed. By July lit is expected that the divisions in the various States of Michigan. Ohio, Indiana, and Illinois will have been organized, and the groat trunk line from Detroit and Toledo to Kansas City will have been formed by consolidation of the various divisions. The name of the consolidation will be the Wabash Railroad Company, and It is expected that Mr. O. D. Ashley will be Its President First and second mortgage bonds covering the whole line will be issued. The first mortgage will provide for new bonds to the first and second bondholders of the old road and for the payment of the $4,000,000 to the first mortgage bondholders who refused to come into the reorganization scheme. The second mortgaro will also cover the whole consolidated line, and will provide for an issue of debenture bonds to cover about $27,000,00 ) of bonds secured by the mortgage of June, 1880, on which $10,090,000 of bonds were issued, as well as for the collateral trust mortgage of $10,000,000. Five years ago, on May 28, the whole of tho Wabash system, east and west of the Mississippi River, went into the hands of Humphreys and Tutt as receivers. It owed seven or eight million dollars of floating indebtedness, and could not pay the interest on its general mortgage of 1890 or on its collateral trust mortgage. The lines west of the Mississippi have sinco been reorganized, and are now under the control ot the purchasing committee, and since the receivership as to them terminated by the sale of March, 1886, they a* e said to hove done remarkably well, and to be now darning their fixed charges and a surplus.