The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-07-29
THE WILLIMANTIC RAILROAD.

Trust Company and What He Don't
KnOw-Thc First Mortgage Bonds OF
the Road with the Trust Company.
MIDDLErOwN, Conn.,. July 20, 1873.
After ride OF an hour and hall, leisurely made,
from New Haven over the finished portion OF the
Air Line Railroad, your correspondent found him
self in this city after absence or three years.
Now, as them the town seems to lie comfortable
and at ease beneath sc0rching sun. Here and
there however, were to be seen marks OF growth
and enterprise the advance guard OF that progress
which the people, four years ago, dreamed would
follow when the railroads should be built. But my
journey hither was not to take note OF the new
store fronts In the old town, but to learn some
thing Of more interest to many Of the
HERALD readers-tO w.t. the operations
OF the late E. S. Mills, OF the Brooklyn Trust Com
pany, with the New Haven, Middletown and Wilt
mantle Railroad, or as 1t Is here more commonly
called, the Air Line Railroad. Proceeding directly
to the offices Of the company found them in an
Old mansion. near the bank Of the Connecticut,
where she company's bridge crosses it. Passing
up walk, lined and shaded with high trees on
either side what was once the residence OF an old
arstocratic family by the name or Halstat is
reached. Going in, the business office was found
in what was once parlor. Here your correspond
ent was greeted by the only ofhcer Of the road
who happened TO be In town, the President, Vice
various directions. The gentleman met was the
TREASURER OF THE COMPANY,
Mr.. A. NJ. Colegrove, comfortable 1armer,looking
man, shrewd clear headed and well to do flnan-
cialy. To my brief explanation of my mission he
replied to the effect that he preferred to have the alb
sent Secretary make u statement but at length he
gave some facts, which are incorporated in what
follows And to clearer understanding OF the mat
ter little the history Of the road should be given.
the Air Line road began between New Haven and
Middletown, small pas Of the stock having been
o.rtha htpro uIf no UnG n Nav
dletown Portland and others having voted to loan
about one million dollars 10 The company, to be Sc
cured by the second mortgage bonds. The COM
pany had the right to issue first mortgage bonds
IN amount equal to hall tine amount expended on
il1 Substantial 1aaner TO MiddetoWn distance
of twenty-thiee miles, at cost OF about one mil
lion OF dollars and trains have run regularly on.
that portion ever since. Then began
THE FINANCIAL EMBARRASSMENTs OF THE COMPANY,
IN the Mast Of which, during the succeeding Win
ter its energetic President David Lyman, suddenly
died. The following season the towns which had
made tn II loans to the road were induced to &C.
cept in lieu OF their security an equal amount of
MIR. Lee to finish the grading to Willimantc, and
contract was also made for finishing n g tue orage
last Fan, when another hitch occurred. The Com
pany, alter negotiating awhile iell N with Mr..
S who Claimed to be man Of large sss
means. With him contract was made
on the rails This was called the Richardson con,
tract, for the. reason that Mr.. T. Richardson's
was uSeQ as contracting parry, tnOuRn IN
fact he had little to do with tue matter. While
negotiations were pending, which resulted in the
execution OF the Richardson contract Messrs. E.
| S. Mills and NJ. T. Rodman appeared at Middletown
and became acquainted with the officers OF the
road and appeared to have an interest In Whites
negotiations although the company claim they
had no dealings directly with them. The business
was all done with Mr.. White who afterwards su-
perntended the execution OF the contract Mills
ana Rodman, however, came occasionally to Mid.
dletown and appeared. by their intercourse with
the officers of the company, to have
and with its success nj performance What the rea
items OF Messrs. Mills. Rodman and White were the
the Treasurer says ne does not. The terms of the
contract were that White should finish the road
first mortgage bonds, then que, to the amount Of
$3OOOO for $450,O00, and he was to receive in pay
ment 100000 In first mortgage bonds, valued at
$3.50, 600, 81, 600 600 IN second mortgage bonds,
| guaranteed by the towns OF Middletown, Portland,
Chatham, Hebron, Colchester and Middlefeld, and
the balance OF the stock not taken, amounting to
about $1,336,ooO. 1t appears that the 100000 in
first mortgage seoa bonds was paid oyer and
The 0S Trass Company for Mis- s0O WSo
| received the bonds, as is supposed, from
| White as security for personal advances. These
things only surmised by the railroad officials
except that 1t Is known that the bonds were regu
larry discounted BY the directors OF the Trust
bonds nave never been handed over to White
| Those found with the Trust Company were placed
there by the town Of Middletown Tor sale keeping
and the town holds the receipt OF the company Tor
them. The deposit came about IN this way middle
| town guaranteed half million second mortgage
bonds and took as her security for the completion
| of the road two other similar bonds, when the
| Selectmen placed with the Trust Company until
| the Richardson contract should be fulfilled and
| the work accepted by the company. The town Of
| Portland guaranteed 100000 OF these bonds and
| the towns OF Chatham, Hebron and Middefeid
| have agreed to guarantee $4,000 worth, which
| will make the one milon but these towns have
| not yet Effected the guarantee.
THE RICHARDSON CONTRACT
has been substantially performed, but little work
remaining to be done, such as ballastng the track,
| and a short time before the death Oh Mr. Mills a
party, consisting Of gentlemen from New York,
| New Haven and Middetown, made an excursion
| over the road and met an excursion party near
Willimantic, from Boston, and the two, over q
champagne collation. celebrated the uniting OF the
| two roads. About that time the officers OF the
| road were engaged In an effort to organize an
equipment company, and IN this the late Mr.. Mills
! took lively interest. He was an ardent champion
| OF the project and urged it upon New Haven gen.
| tlemen during the excursion over the road. The
plan was to put $25O,0o0 in the pool, which
was to be used to pay the coupons OF
May, and to place the necessary rolling stock and
station houses on the road Mr.. Mills had signifed
his intention OF taking half OF the amount, and the
| rest was TO be made up 10y gentlemen living along
the lire of the road and IN New Haven. Mr.. Nils
sudden death put an end to the scheme This IN
as the railroad oficials are disposed to AFFIRM and
information from other sources indicates also that
this was the extent OF It, Whether he advanced
funds to White to finish the road otner than were
obtained from the s2Oo0O0 worth Of hrst mortgage
bonds discounted by the Trust Company cannot be
ascertained here, as the railroad officers say that
they know nothing OF
THE RELATIONS OF WHITE AND MILLS;
and they also say that they did not know until the
papers made It public That the frst mortgage
bonds were with the Trust Company, although
they suspected they were. Mr.. COlegrove speaks
well OF Mr.. Mills, and II would appear that his
good Offices were occasionally used to smooth mat
tiers when the railroad officers and Mr.. White got
into differences, as they sometimes did The CON-
pany is now seeking to form local equipment
company and expect soon to be able to put rolling
stock on the road. The mail is now carried over IL
daily. The total amount OF securities issued to
build the road Is as iollOws:-Capital stock,
So 600, coo; first mortgage bonds $4,000, 600; Sec
ond mortgage bonds, $2,00o0O0. OF course the
amount realized in cash was very much less.