The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-12-24
Boston, HsRVT0RD AND ERIE RilLaoAD.
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Z III AINr.ss,chusett- Authorizing the tiornpIc.
zion Of the Road 10 WIln mantle, Conn.

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II Nr.snchusetts Authorizing the tiO,nptc.
zion Of the Road TO Wilnmamtic, Conn.
BosroN, Dec. %. 1870.
The case OF the Boston, Hartford and Erie Rail-
road, on petition for authority for the receivers
to make contract for the completion or the road to
Wiamantic. Conn. came up in the Supreme Con rt
this forenoon, Judge Gray presiding. There were
half dozen couselors-at-law in the room, and a
dozen or more parties in interest. This Is the appli.
cation to the Court to authorize the receivers to
make contract with Mr.. Munson for the compile.
ton OF the road to Willamette, by consent of all
parties as projected in The arrangement made in
the United States Court Judge Shcpley presiding
some weeks ago.
Judge Curtis, representing the Adams Express
Company, Burdell bondholders ana Others, showed
that there might be objections to the proposed con-
tract The receivers, he argued, had not the power
to make such contract which lay in other hands
II anywhere. The receivers had certain defined
powers and this was not one OF them.
MIR. L. lockwood H0ar made an argument in
favor OF the Court authorizing the mortgages TO 20
with the work or completing the road through
the contract alluded to, for the purpose OF saving
from deprecat on inc property already constructed
and make II productive for the benefit OF all parties
Several parali cl cases were cen, that OF an unl.
shed house. which needed stating TO save 1t from
ruin. an unfinished railroad bridge, liable TO be
destroyed by hood, &c. No new mortgage was
required when In the execution OF existing mort
gage could be found all necessary power. The pro-
perry OF the corporation was utterly Inadequate to
satisfy the Burdell mortgage, and the consent OF the
corporation seemed OF little consequence. The
other parties IN interest agreed ana the Court
had undoubtedly the power to authorize the re-
celvers to incur obligations for future present sec
ucment, the payment to be made OF the property
before the property Is returned, aud paid as the
expenses or the proper management OF their
trust, first expendlture-a DICTIONARY bond,
AZ IL were-to secure and mako available
the assets for the benefit or all. II the Court can
order the sale OF property under foreclosure OF mort
gage IL can also order the application OF funds TO
useful and necessary purposes, the payment of The
same 10 be made charge upon the property The
required expenditure would only be about two per
cent OF the amount OF the debt The case might be
closed In less than three years; much the better
for all partes and, II adversely, theCour could stIll
order the sale transfer OF some property to satisfy
the claim incurred.
Judge Gray expressed the general principles upon
which tomorrow he should issue the decree author
ling the receivers to make the contrast: That
the preservation Of the property and the
interests OF all parties required 1t; that
the contract should be deemed 70 be n para.
mount lien on the properties; that certificates
Of Indebtedness be issued by the receivers to Mr.
Munson, not negotiable notes. but vouchers to Sc
cure subsequent payment OF claims; that instru-
ment collateral may be issued TO the trustee to
provide for his action when he shall take possession
or the property In the future, under certain circum-
stances; and that these general PRINCIPLES being
sc tled the parties must agree on the details to be
en- bodied in the decree. Judge Gray announced
that he would be IN court tomorrow morning for
the purpose of issuing the decree &c Is proposea 10
and secure from the United States Court the neces.
sary approval and provisions so far rs the case Is
affected by any possible contingencies likely TO arise
hereafter under the proceeding in that court.