News of the year 1922 of the Midland Pennsylvania Railroad is presented here as reported in area newspapers.
For all previous articles on this doomed project, see: Midland Pennsylvania Railroad.
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From the Harrisburg Daily Independent, 30 January 1922:
Judges Reserve Decision In Midland R. R. Appeal
After the windup of the affairs of the old Midland Pennsylvania Railroad Company, which abandoned its plan to bring a railroad between Millersburg and Ashland, approximately $21, 760.80 remained to pay off holders of $906,700 worth of bonds issued by the company, it was said in court this morning.
Persons holding about $203,000 worth of bonds failed to file claims, so the court recently ordered the money distributed among these stockholders who did put in claims. Under that order each $1000 bond would be worth about $24.
The Commonwealth Title Insurance and Trust Company, of Philadelphia, is the bondholders trustee, and as such is settling up the railroad’s affairs, but it objected to paying the claimants and ignoring the persons who have equally valuable claims, but did not press them. Brief arguments were made by lawyers this morning for and against the distribution plan. The judges reserved decision. All lawyers agreed that the non-claimants are unknown and cannot be located, and if money is not set aside now to pay them later on, there is danger that this reserve fund escheating to the state for want of ownership.
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From the Harrisburg Telegraph, 30 January 1922:
FILE EXCEPTIONS TO DISTRIBUTION
Trustees in Midland Pennsylvania Railroad Company Raise Question
Exceptions to the court’s approval of the plan of distribution of proceeds derived from the foreclosure sale of property of the Midland Pennsylvania Railroad Company were discussed in court this morning by Frederick C. Newbourg Jr., counsel for the trustee, and Charles H. Bergner, representing the railroad company.
The court decide in favor of distribution only to holders of first mortgage bonds amounting to $704,000, who had presented them, ruling that others, who are unknown, and who hold bonds amounting to $203,000 should not be entitled later to any funds which were derived from the sale and settlement.
The Commonwealth Title, Insurance and Trust Company, Philadelphia, through its attorney, objected to this disposition and said that distribution should be made on the entire amount of first mortgage bonds, totaling, $906,7000, and that as trustee it should receive and hold the amount allotted to be paid to persons holding $203,000 worth , who are unknown at present. It was suggested to the court, however, that in case the proportionate amount for these holders is given to the company in trust, in case no claim is made for it, the funds will escheat to the State.
Should the court dismiss the exceptions distribution will be made of all the funds on hand, to the holders of $704,000 worth of the bonds, who are known, and who will receive about $24 for each $1000 bond. Decision was reserved.
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From the Harrisburg Telegraph, 31 January 1922:
In an opinion today the court dismissed exceptions which were filed by the Commonwealth Title, Insurance and Trust Company, Philadelphia, trustee in connection with foreclosure proceedings against the Midland Pennsylvania Railroad Company. Distribution of funds to bondholders as originally approved, was directed. About $24 will be paid for each $1000 bond, and $704,000 of the 906,000 issued have been located.
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From the Harrisburg Evening News, 31 January 1922:
Dismiss Exceptions to R. R. Fund Distribution
Judge Fox decided today a case that was argued yesterday, in which he dismissed exceptions filed against the plan for distributing the money realized through the sale of the Midland Pennsylvania railroad Company. The judge directed that holders of $703,000 worth of the railroad company’s bonds, who had filed claims, shall share in the distribution, and that persons who hold $203,000 worth of bonds, and who failed to present claims, shall not have the right to share. Each holder of a $1000 bond will get about $24.
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From the Harrisburg Patriot, 31 January 1922:
DISCUSS SETTLEMENT
Settlement of the affairs of the old Midland Pennsylvania Railroad Company, which abandoned its plans to build a line between Millersburg and Ashland, was discussed in court yesterday, brief arguments being presented by lawyers for and against the Commonwealth Title, Insurance and Trust Company, Philadelphia, who is settling the railroad’s affairs. Owners of $1000 bonds in the old company would receive about $24 on a settlement ordered by court and objected to the trust company, which contends that it is unfair to pay only the claims of those bondholders asking for settlement and ignore the claims of those who have not put in claim.
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From the West Schuylkill Herald, 10 February 1922:
BONDHOLDERS RECEIVE VERY LITTLE
The bondholders of the Midland Pennsylvania Railroad Company who tried claims with the bonding Company will share in the distribution and will received about $24 on each $1000 bond according to the decision of Judge John E. Fox of Harrisburg.
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News stories from Newspapers.com and from on-line resources of the Free Library of Philadelphia.
Corrections and additional information should be added as comments to this post.