The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-07-21
THE MIDLAND RAILWAY.
Further Important Details OF It's FL
nanctal Dtmcalties.

Further Important Details OF It's FL
nancial Difficulties.
The important announcement that application
had been made to Chancellor Theodore RunyOn, OF
New Jersey, for the appointment Of receiver to
take charge Of the Midland Railway In that State
owing to financial trouble, briefly and exclusively
made in yesterdays HERALD, proves to have been
merely 1.-THE Of the truth. Tho follow
ing additional details have since come
to the knowledge OF q HERALD representatives,
Work was commenced on the road about three
years ago, and 1t was opened for traf,c last jan
uary. The trouble which has brought the company
before the Chancell0r's Court Is not alone nom
payment Of wages to employees and indemnities
to landowners, but, as is alleged, plan to make
the people OF MOnIclair township, In Essex, whistle
In vain Tor some TWO hundred thousand dollars
they have invested In the road. 1t appears that in
the beginning Montclair assumed this amount OF the
roads bonds Of Indebtedness, the Montclar division
OF the road pledging security to the town, and
the Midland, In turn, to the Montclair. In
the event Of neither the Montclair division
nor the Midland making good It's promises the
town became responsible. This 1t seems. was the
original understanding and agreement. The work
on the road was rushed forward, and, as above
stated, 1t was opened last January for traffic
The first management Of the affairs of the
company gave great dissatisfaction. The officers
better versed in New York legislative politics than
rairoadin9. Be this as it may change took place
some time ago. The old official regime was routed
and
SYNDICATE SUBSTITUTED
at the head Of which stood and still stands ex-
estlmabie and admirable the syndicate may
Be- WITH Moascsir EVEN more apS %npopuls1
Of this is that the syndicate, as is declared, have
given the people Of MontcIalr to understand that
made by the Midland to the MOntcair division,
thus rendering the securities OF the former worth
less and throwing the burden ofsthe debt on the
latter.
THE LIABILITIES OF THE ROAD
now are set down at $7,70s,000 This includes nrst
and second mortgage bonds. debts unsecured, inte-
ly excited the matter Tor should the syndicate
really repudiate the Midland's promises Mont
her nu%oer Of too are IN
Of them, Gr: Macarthur, who built
the tunnel has long been trying to get little bill
OF his settled-a bill to the tune OF $4,000.
Another contractor is likewise anxious about
s ana noIs 81 oSs5
others 1t was who brought the matter before Chan
cellor Runyon's Court IN Newark. On Friday last
argument was had to show cause why receiver
should not be appointed to assume control of the
AFFAIRS OF the company.
THE DEFENDANTS FAILED TO SHOW ANY CAUSE,
and Chancellor Runyon took the papers and re-
served his decision until to-day or t0-mor-
row as to. whether he should appoint re-
tribuiation among the MontcIar folks is the
fact that certain persons formerly in the employ OF
the road and known to have influence with it still,
have been specially threatening that they
one penny Of their money. Contractors
and other are
too in these latter circles, that plot is Matching
to depreciate the value Of the Montcair Division
and the full control and ownership OF the entire
road be secured by the syndicate.