The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-07-22
R MONTCLAR 1AMROAD AND IrS
FINANCIAL TROUBLES.
TO TIE Rprron or rHs HssALD:-

TO TIE EDrr0n or fHH HERALD:-'
misapprehension which confounds the comps.
niles In New Jersey with the New York and Oswegs
Midland Railroad Company Ia calculated to do
great injury to the oncers OF the last named
pany and to impair its credit and the credit OF tho
New Jersey Midland Railway. This leads me 10
make the following explanation OF the relative po-
sltion OF the three companies and the facts about
the dimcuity. The New York and Oswego Midland
Railroad Company is corporation OF the State Of
new YORK; the New Jersey Midland Railway Com
pany and the Montcair Railway Company are
companies OF the State OF New Jersey.
They were originally rival corporations.
Both OF the last named railroads begin AZ
Jersey City and run TO the New York state line by
entirely separate routes. The New Jersey Midland
strikes 1t ut Unonville in Orange county, and the
M0ntclair at Greenwood Lake. Contracts were
made in 1850 by the New York and 0swego Midland
Company with both companies for a per.
70 Ss its
lieved u would form part OF line from Middle
town to New York twenty -four miles shorter than
BY the line projected by the New Jersey Midland
Company and rs It a. believed s ss or few
The New Jersey Midland Railway was con,
tracted for on the ground OF getting rid OF rival
way At onoe--a supposition which has proved truo
nom Its 1rst years business In the course OF the
construction OF me Montclair Hallway lack q
was furnished by the New York and Oswego MID
land Railroad Company, and 1t was thereby enabled
to go on and put Its road IN order 30 as TO run
trains within about four miles OF Greenwood Lake,
and that portion was nearly finished The New York
and Oswego Midland Railroad Company furnished
aid In the way OF cash, bonds and endorsements.
amounting in the aggregate to about one million
OF dollars, and 1t also guaranteed the principal and
interest upon the bonds oil tho Montclair Com
pany, TO the extent OF So 900, az was provided
FOR In the contract. In January, 1878, the Now
York and Osweg0 Midland Company took posses
sion OF the M0ntcair road and began to run 1t 40
cording to the terms OF the contract and Its
officers began to take steps TO perfect form Of
lease and have IL executed IL was ascertained
during that time that an un0oked-or and fatal de-
iect existed in the charter OF the Montclair Com
It could lease It's road and franchise The officers
OF the New York and Oswego Midland Railroad
Company were then advised by counsel that all
contracts made In that behalf between these COM
panies void by operation OF law, and that the
officers OF the New York and Oswego Midland Com
pany had no authority to pay any money until that
power could be obtained.
were Tor debts OF the MOntClar Railway Company.
The application before tho Chancellor ls to appoint
receiver, not OF either Midland company, but OF
the Montclair Railway Company.
receiver under the New Jersey laws can make
lease OF the property, or sell II, subject 10 tne
mortgage bonds and other equities.
have no doubt but that, on q reorganization OF
the Montcair Company every creditor VIII DO
recognized, and, In lease or sale OF the property.
u. Il. CULVER,
President OF the Montcair Railway Company, and
late Vice President OF the New York and OsWeg0
Midland Railroad Company