New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-01-27
SHORTER ROUTE TO BOSTON.

TIE BOSTON, HARTFORD AND ERIE RAILROAD
IN TIE CORRESPONDENT FOR ROAD TO
SAVE % MILES IN DISTANCE BETWEEN NEW
YORK AND BOSTON.
BOsTOy, Jan. 1G.-Since Gov. Claims veto
of the bill granting further State aid to the Boston,
Hartford and Erie Railroad the affairs OF that corpora
ton seem finally passed out Of the control Of
politicians and to DC in a fair way Of settlement by
judicial procedure.
In August last certain of the bondholders under the
Berde mort gage filed bill in equity In the Supreme
Judicial Court Of Massachusetts, setting forth the we'll
known facts that the convertible assets of the road had
been sqandered by it, officers in unauthorized and I'M
warrantabe specuations and that under their manage
ment there no likelihood that either the interest or
principal OF the "Berdel" bonds would be paid,
and praying that the whole control and administration
OF the corporate franchises and property or the ROAD
might be placed in the hands Of receivers decree OF
the Court was Immediately made in accordance with the
prayer OF the petitioners appointing n board OF nVc
receivers who forthwith took possession Of all the prop
erty OF the road Affairs in this condition when, on
Oct o. certain other Berde bondholders filed petition
in the United States District Court for the Dsrct OF
Massachusetts,, asking that the Hartford and Erie Cor
poration he put into bankruptcy and that an injunction
forbdding either the corporation or receivers 10
make further contracts a to the completion OF the road
or to do anything else disturbing the status quo OF the
property.
The Injunction was ut issued, asked the qes-
ton of bankruptcy being reserved. Objection TO the
Jurisdiction In the premises Of United States Court
sitting in bankruptcy was at once taken by the corpora,
ton. and the question argued az repeated heirgs me
principal objection being that the 3th section OF the
Bankrupt Act of 1907 cannot be applied to railroad cor
pOrations the words OF the section beng; me pro
visions OF this act shall apply to al moneyed Dlslness
commercial corporations and joint stock companies,
and il being conended by the corporation that railroads
public quasi public corporations, and not WITHIN
the purvCw OF the statute. This view supported by
the Hon. Il. L. Curtis in an elaborate argument
This being the first case in which IL Is sought 10 adj
Act the decision of Judge shepley upon the point
OF jurisdiction anticipated with much interest Inns
was finally rendered the 18th of December che ground
being taken that the intention OF Congress IN framing the
S7th section OF the Bankrnpt Act was 70 eDraSe la
mercia corporations - that railroads were not IN the
view OF the United States Courts such public corpora
ons exempt them from the operation of the bank
rupt act and that consequently, the Court had lu Jls-
diction OF the matter in bankruptcy An appeal nom
this decision was taken.
Thus tho matter rests at present, January Ia, in the
lion bein posponed until the question of jurisdiction
shall be decided in the United States Circuit Court before
Judge Clifford Meanwhile pending these proceedings
i'm the United states Courts the receivers appointed by
the decree OF the Massachusetts supreme Court had
entered into contract with Norman C. Munson, the we'll
known railroad contractor 10y the terms OF which Munson
was 10 complete the unfinished section % the road be-
tween Putnam and Wilimantc in Connecticut, and to
receive therefor s3OOOo in certificates OF in
debedness issued by the receiyers and secured by
lien upon the earnings Of the road all the parties IN in
tercs namely, the corporations the receivers and the
Bcre bondhoders. agreeing by counsel that the III
junction issued by the United States Court might be 50
modified rs to permit the execution OF the contract
hearingu the question or allowing inc receivers
TO make the had before the Massachusetts,
supreme Court the nth OF December and the decree
allowing il made December 49, The evidence pro-
duced ths hearing by the receivers was voluminous
and interesting IL appears that the section OF road al
ready gIaded-between Putnam and Wiliimantle-ls 20
miles in length; that, by the terms OF the contract Is
to finished by LIST day OF May 1871 and that with the
completion OF the section OF the Air Line Railroad
between Wllimantic and NewHaven, which is expected
accomplished during the early part of next sum
mera railroad line will be created between Boston
and York. saving 20 miles In distance and one hour
in tme compared with any other route now existing
between the two cities.
Prominent railroad testified that In their opinion
the earnings of the Hartford ami Erie Road would be
increased from to cent by the execution OF the
proposed contract and there to be- no doubt that
by the end of next Summer line between the two
cities OF Boston and New-fork viii be completed ana IN
full running order No questions were raised at the
hearing as TO advantage of completing this section OF
the road TO all parties concerned The only objection to
the decree the Massachusetts Court being To its rs
dcton in the premises, considering the bankruptcy pro-
ceedings pending in the District Court. But on full con-
sderaton the state Court decided that had full urs
dicton the promises and the fact that Judge Shepey
District Court has since then, JAM g. modified his
Injunction OF Oct o. to admit the performance OF
the contract, removes all difficulties which might have
arisen from conflict of authority.