Smyrna times., 1873-12-10
Down on Gould.

A corresp Indent Of the Phiadcph Press Of
Monday pitches into Jay Gould sharply for his
transactions with the New Jersey Southern Rail
roud. The gist Of the correspondence letter is this
There is now pending in the ChanceTy Court of
New Jersey, at Trenton, and TO be decided by !
Chancellor RunYon, of aspect exlraOrdi. |
nary as TO deserve special attention. The vital ,
point is, Can president of the Jay Gould type, |
who may have a scheme of his own to carry out,
plot the absorption of railroad receipts and then,
on the plea of insolvency resulting therefrOm have
first mortgage fOreclOsed and road sold thereby
70 consummate a plan Of consolidation and reorgan.
zation under general mortgage, in substitution
for first, second and third mortgages and hoatlng
debt
When the N. J. Southern was known as the
Rarilan & Delaware Bay r. R. Co. incorporated in
1854 it was sold the l4'h of September, l569,
and the purchasers the day recognized, and
also the same day executed a mortgage for two mil
lion dollars the road, its two branches, equip
ments, appurtcnances, and all other property what
soever.
The name Of the corporation was changed 10 the
New Jersey Southern Railroad Company by act Of
the Legislature passed 9th February, 1870. when
the proceedings of reorganization were affirmed
Interest on the bonds secured by the first mort.
gage for twn million dollars paid half yearly
iii November lst last, when the company defaulcd
: and of which default arose the bill in equity
now before the Chancellor, for foreclosure and sale.
r Besides the first mortgage there a second mort.
gage of date March l, 1872, for million dollars
and third mortgage, dated Aprl7, 1873, for seven
y y million dollars. OF the last, which covered roads
} additional TO the roads owned when the FIRST mort.
." gage executed but few bonds we are told have
been placed.
n In October, 1872. Jay Gould was elected Presi.
l. dent of the n J. S. r. r. Company.
d According to the annual report of this Company
h for the year 1871. To by Ashbel Green pres
r dent in February, 1872 the net receipts were in
/ pf tba inf Fpst IN he frat
lie According uso the annual report for the veal
c. 1872, TO by Jay Gould president, in February
ST 1873 the net receipts in Of the intercs
he on the first mortgage, in a considerable SUN.
sh And yeti in the bill filed in the ChBncery Court
Trenton. after recital Of the fact that the New
- Jersey Southern Railroad Company on the lst o
=, November, 1873, deeaulled for seventy Thousand
"a dollars due for interest first mortgage, the s0ci
-, tors Of cOmplainants say; " That as your orator
oJ Informed by the directors Of the company, tn
~ said Company has expectation Of paying any PAT
of the said interest in default; that the said com
~ pany not and has not been for year past
receipt Of sufficient funds from its business TO me.
~ the expenses Of repair and running the road.
- Did Jay Gould. president Of the New Jersey r al
~ road Company, for account Of Jay Gould, Of iii
~ Narragansett Steamboat Company, which latter iu
nished steamboats, (of over for the rOute TO pl
s between New York and Sandy Hook, pay such Ing
~ compensation absorbed the earnings of the Fsi
10 road Was ihe Erie tiiek repeated?
g. Jay Gould. we have said, was elected preside
of the New Jersey Southern Railroad ia Oclobe
ION 1872. In October, 1873, NJ. w. Serat who serv,
". under jag Goud's presidency of the Erie Raws
of Company, and was last year m lde superiatende
he Of the New Jersey Southern Railroad by Jay Goul
ng, was made president pro TEN.
zIe There was application made to first mortga
ted bondholders TO fund coupons relieve the compar
all. from embarrassment. nor was the Chancellor
ed New Jersey asked to decree the sale of the Tos
her subject to the first mortgage. Oh. The p
be- contemplates clean sweep down to hard pan,
IN provide basis for general mortgage which sh
cen cover a road from New York to Baltimore, and p
axe vide bonds Tor ilibusters to campaign with in NJ
zIe, Jersey Delaware and MARYLAND and on the wat,
led of Raritan Bay, Delaware Bay. and Chesapea
Irr- Bav.