New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-03-02
RAILWAY INTERESTS.

or THE ROAD-THE COMPANY ASSERTED TO Be
INsoLvENT-As.oUNTs DUE TO MEN EMPLOYED
APPLICATION FOR THE APPOINTMENT OF A RE-
CEIvER.
Another railroad is likely to be added TO
the long list Of which have been forced into the
hands OF receivers through inability 70 meet their ob
cations The road now in danger Is the NewJersey Mid
land one of the principal roads In the system OF wnieh
the unfortunate New York and Oswego Is the parent
lne The New,Jersey Midland Road extends from Jer'
sey City TO KNOXVILLE at the EewYork line. distance
OF "a miles Ever since the panic the road has been 10
financial trouble. and has only been maintained IN toF
cradle standing by the enency OF Its creditors ana tno
exertions directors 1t leased to the Newfork
and Oswego Midland Railroad After the panic the cou-
pons which matured funded into short bonds De
cause OF the inability Of the Company 10 pay them
short time ago the directors met and deferred the pay
ment Of the coupons This intention was expressed ia
the following resolution:
Owing the depressed condition Of the business o. %,
che NxYOrs Midland Road the receipts Of our cS%DaSy sy Allen
crosse ere.y middle Of ,ss month o Aon ,..,
bonds Be deferred Until Msy i.
Threats OF putting the road into the hands or re-
cever have been freely made by bondhoders and cred
iors for some past and serious apprehensons have
been entertained by OF the officers. Yesterday
meeting Of the directors was held at the oce OF I'd"
Company In Lbertyst for the purpose OF considering
the financial condition OF the Company The meeting was
intended to be private, and the information re-
vealed not supposed to be for publication The
troubles which beset the Company were freely discussed
and the methods for obtaining money were suggested,
but all to no result. The question Of receivership
which should he favorable TO the present management
was discussed appeared be favored by some OF
the principal directors. TRIBUNE reporter asked the
President Cornelius AWortendike OF Godwinvile N j.,
for his of the affairs of the Company, and tho
the directors Intended 10 pursue Mr. Worten-
dixie refused mpart any information saying that the
meeting only an ordinary business meeting, with
out special significance.
While the meeting was going on an application was
making before the Chancellor OF NewJersey for the ap
pontment OF d receiver The application was based
upon the following complaint sustained by the afida
WITS of Theodore K Yarick, Nathaniel Dale OF No. 6s
Broadway, and James Mcbride The most serious allie
cations in the complaint as follows:
The said company insolvent, and unable 10 pay its
debts, and large amount or money Is due IRON sad
company to its various creditors, among the rest 10
your orators All its assets not sufficient 10 pay lls
debts due and coming due. Its nJdung dept Is
sl,leO.0O0.
power gwen IL by the several acts Relative thereto has
issued bonds TO very large amount Inc bonds Issued
by said company divided into three classes. The
first class comprises bonds to the amount OF s3OOOOO
which secured by first mortgage on ITS property Ia
said mOrtgag mentioned, and are thence called nrst
mortgage bonds Tue second class comprises bonds 70
the amount of 81 100000 which are secured by second
toned The amount OF said bonds last mentioned
already issued it believed does exceed 100000.
although the intended to be Issued Is about
S1OOO0,OO0 Interest all Of said (three classes OF
bondsj has become due and been unpaid for above IL
The said railroads OF said Company operated by
agreement between said Company and the New YORK
and Oswego Midland Railroad Conpanya corporation or
the State OF Newfork, by the latter Company. untli
the year 1873. The said New-Jersey Midland Railway
Company began 10 operate Its said railroads IN inc
month OF December 1873. The said Company had then
a floating
said Company, from various causes, mainly those or
Insmana cement, mas become worse aud worse 10 IFS
financial condition, unt IL now hopelessly nsoivent
Its first mortgage bonds are offered IN open market at
40 per their par value it, secOud at TO- and its
consolidated al ana no buyers can be induced To pur-
chase at those prices.
BONDS not taken from the officers and Others con
nected with said Company who receive and handle the
money and in consequence thereof the Company has by
the emOezzement or such officers ana others lost nc
least $1,000 Richard Terhune, one OF said directors
and treasurer OF sad COMPANY 49, 10 the knowledge
or said President and OF majority or the Board OF
Directors furnsher Of supplies 10 the SAID Company
to d large amount, and therest said Terhune makes
The SAID President and said majority Of directors and
each OF them, ndOrsers upon the notes aud other
commercial Obligations OF sdd Company, anu use inc
OF said Company prefer such creditors az nave
taken notes, and 10 relieve themselves from han'
y on these ENDORSEMENTS 10 such cIOItors ihese III
dOrsements amount 10 at least S200O00.
The SAID officers divert the moneys Of said Company
and The receipts and felgnts from the Icgit
mate channels, aud TO such extent ana ~ suen oIec
that the a0OreIs and wOrhDen Of al KINGS eogl
neers, hremen, 0raseinen, conductors Oaggdge-men'
switchmen are now unpaid aud sad Company ~ la
amount TO Sj0O00 aud the supplies necessary Tor
the daily running OF the road, such as coal OIL lrO ai
machinery are unpaid to the amount OF a0ont soooO
more Tie officers and managers OF the said Company
are paid themselves promptly. BY reason ol the neglect
10 pay the workmen aud lborers aforesaid, the cars
aud engines passenger and freight are dlly subjected
to Tie greatest DANGER being impossible las - per
fecy known to all those at all acquainted with railroad
mar gciIenU TO induce such aOorers ana workmen ~
do vi ,ir duty when they are not paid
During tno last two months accidents plainly tracea-
bic 20 the negligence or the unpaid empoye, have hap
pened upon I'D road, whereby the rolling stock OF thc
zv In eDu
accidents and the known msmanasemeut OF the road,
the OF the road has fallen oil and the receipts
have been considerably reduced.
Tne preservation of the lease OF the roads leased
winch connect with the said New'Jersey Midland Rail-
road the greatest Importance, and there - tho
danger that the said leases Will he lost by Don-
payment OF the rents II the present Arrangements con
The notes and checks OF said Company, as low
totally devoid OF credit aud such loss OF credit ~ chiefly
due 10 mlsmanBgcme and extrayagaDce aud DIVER
Of the treasures OF the Company rom the payment
OF running expenses To the debs for winch the Pres
ident and directors have heretofore become security.
large amount of the stock OF said Company has peen
issued since first day of January. 1875 10 II Is be-
leved the OF 100000. without real coDsld
70 create stock Dy voting upon which present Pres
ident md directors DC kept In power In short no
Of the aud creditors and promote that Of
the President and directors
Upon this complaint the Chancellor issued an order
that the SAID the NewJersey Midland Railway Com
many show cause before the Chancellor Monday the
srh day Of March instant 10 O'Clock 10 the forenoon
OF that day, Councillors Chambers IN Newark.
why Receiver or Trustees should not DC appointed.
THE NORTH PENNSYLVANIA RAILROAD.
PURCHASE OF 3O,SOO SHARES TO PREVENT THE ROAD
FALLING INTO THE HANDS OF THE PESNsyL-
vANA RAILROAD COMPANY.
PHILApeLpHIA, March 1.-Messrs. Pardee,
Knight Comfy and Others all heavy holders OF North
Raiiroad securities. have purchased the
entire stock held by the city in that agge