New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-25
AN EMBARRASSED RAILROAD.
RumoREp INSOLVENCY OF THE NEw-JKRsEY SOUL


FRN-THE HEAVIEST CREDITORS.
Among the causes which added to the early
depression on wallst yesterday. was the reported
bankruptcy Of the New-Jersey Southern Railroad IL
WAS alleged that the Company iDsovent and that
large amount of It's paper was daily falling due ana
could not be paid 1t VIII be remembered that some
DAYS ago there was sudden change the direction OF
Company, aud that Jay Gould aud anumber OF other
directors retired their places were supplied by per
sons friendly the Gould party The directors at the
time OF the change were :. NJ Mhls,
C. ". Huntington J. b. Norris, II. ii.
Cook, Charles J. Osborn, Ed. Eldridge,
p F. shawn Green n F. Stockton John Tory IT,.
b. williamson, G. z. MOrosini, and w. A. Painter.
The ofhces Of the company were removed 10 Long
Branch (where the greater number Of tne present d.
rctors resided and several OF the boats sent cast for
repairs. II understood that the road was to pass
under the control Of the Baltimore and Ohio Railroad,
but later advces indicate that such an action rs not
likely 10 be immediate II is understood that number
Of suits are about TO be begun One has already been
begun by Prosper shaw director OF the company for
s6OOO0 which he loaned TO the Company. IL ia under
stood that Mr.. Gould has claim OF $G000Oo against the
Company aud that he viii also prosecute IT, According
those who profess 10 be well informed, jay Gould
claims the majority Of the stock and bonds OF
the NewJersey Southern Road and to have built with
his own means the links between the Delaware and
Chesapeake Bays lin the States OF Delaware and Mary
land) which are about completed. He claims 10 be
building unaided the remainder. This being
the case, he some time ago had under
standing with the Baltimore and Ohio Company that
upon the completion Of these works that Company
would put line of boats and harges 10 make coDnec
ton between Rockhall Kent County MD and Locust
Point at Baltimore As these lines will not he finished
until next Spring. the Baltimore and OHIO Company will
defer the part until then aud they have doubt that
freight route between BasmOre and New-York can
De thus established. and in Summer route for passen
gers The Baltimore and Ohio Company, ii is said how
ever does not dollar of the bonds or stock OF the
New-Jersey Southern Road nor any Of it's friends
interested They have responsibility whatever with
the enterprise beyond that stated.
With view to asceTtaining what truth there in
these statements "a TRIBUNE reporter sought for Mr.
shaw but be had gone to New-Jersey. Inquiry, how
ever of exJudge Fullerton the counsel retained for the
prosecution OF MI shaw's claim, elected the lniorma-
ton that be had obtained an attachment against the
property of the Company, but could not it, owing
10 the fact that all the property was in New Jersey
Beyond the particular suit in which he engaged he
could give nfOrmatOnand unable 10 say whether
the paper Of the Company had gone to protest
mcred
An interview with IN eX-drcctOr OF the company
elected statements 10 the effect thai the previous
directors were desrous that Gould should continue
the work Of construction at his own expense, but they
would give aid although they wished 10 the
profits of the enterprise. There number OF large
vanced 5000 coo, deemed il advisable TO retire.
reporter OF THE TRIBUNE called on Mr.. Jay Gould al
his residence in Ffthave at late hour last evening
In answer 10 inquiries concerning the condition and
prospects OF the New-Jersey Southern Railroad Mr.
Gould stated that since the last election he very
little OF its real condition, having withdrawn from the
Board Of Directors. He certain, however that the
Indebtedness of the NewJersey Southern Railroad was
large and that IL would be able to cancel II without
difficulty. II had held security winch was ampie
II only It could be marketed, hut at the present
time the securities OF the Southern, like those of
all other railroads, temporarily depressed The
company had been disappointed, too in variety OF
ways corporation had failed TO furnish
100000 and others had likewise neglected TO provide
funds IN nearly equal amounts. He was not certain
whether Of the notes OF the company had gone
protest but subsequently stated that he believed some
Of their paper had met such fate Who the cred
itOrs he did know but supposed he himself was the
largest The company, he believed, now awaiting
the action OF It's Committee. This Committee
consisting OF c. W. Huntington, Gen Stock
ton, Gen. Painter, and S. NJ Mills, were
recently appointed for the purpose OF arranging
general scheme for funding the floating debt, and
furnishing means for finishing the Baltimore COnsolda-
lion. The design to form line com
paDy TO Baltimore. Until this committee should nix
upon some definite plan the company would probably
take action IL proposed 10 give the creditors
the consolidated mortgage bonds, and with these Mr.
Gould thought they would he satisfied The meeting OF
the creditors could be held after the reception OF the
committees report. Everything had gone smoothly
with the company until the crisis came. when it,
marketable securities involved II in embarrassment