30 years ago – August 3, 1990
It may go down in the history of the Gilpin County Historical Society as its most controversial year on record. Between the ups and downs the society has experienced the past couple of years, the railroad, and the purchase of the Thomas-Billings House, another obstacle has been thrown in the way off the society. Just when the society was in a position to salvage what was left of the summer by getting the train in operation, a legal maneuver has stopped those plans. At 4:30p.m. Monday, Sheriff Rosetta Anderle was presented a warrant of restraint halting the scheduled tax sale of railroad equipment that was to be held the following morning. Anderle apologized to those who showed up for the sale, but explained that it was cancelled by law, and would be delayed for 30 days. The Black Hawk-Central City Narrow Gauge Railroad, Inc., filed Chapter 7 bankruptcy on Monday, she explained. This move on their part automatically puts the sale on a 30-day hold, with all railroad assets being taken over by the trustee of the bankruptcy court. On May 25, the society received a favorable ruling from a court of arbitration concerning the railroad. That arbitration process was the result of three years of difficulty between the society, which owns the train, and Black Hawk-Central City Narrow Gauge Railroad, Inc., the lessee who owns the track. The society repossessed the train February 3 because of non-payment by the lessee on train taxes and other non-payment problems. Also at issue for arbitration was the fact that the lease expired with the railway company on April 9. The principals of the railroad failed to notify the society that it intended to renew its lease. Arbitrator Harry Atwell ruled on May 25 that the society was due $5,111.40, which included lease charges, taxes and attorney’s fees. The significance to the society of the bankruptcy, said attorney Jerald Devitt, is the loss of time. The society was ready to immediately implement plans to operate the train. It will be up to the society’s board, Devitt said, if he is to pursue a relief from the stay. Society member Alan Granruth was disappointed by the turn of events. He met with a boiler inspector who was already scheduled for an inspection on Tuesday. “That just about takes care of our plans to run the train this summer,” said society president Bonnie Merchant. “We were prepared to bid what was owed the society on Tuesday,” she continued, plus an undisclosed amount over and above that. The train will remain where it has been sitting for months, locked and motionless, waiting for another legal decision on its fate.
The Social Register:
Support authors and subscribe to content
Subscribe to read the entire article.
