The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-11-05
WHEELER As A RAILROAD GRAB
BIER

WHEELER As "A RAILROAD GhAb-
BER.
Testimony of the President of n II ond that
was Taken from Its Owners.
To THE EDITOR OF The SUN-Sr: In
the winter OF 1853 and 1854 william A.
Wheeler of Malone, N. Y, determined to OBJ
tain possession Of the railroad known as the
Northern Railroad Of New YORK. aud having
perfected his arrangements, on July %. 1854
caused to be voted for ds directors thirteen per
sons, including himself not one OF whom was
legally qualified to act as such. These pretend
ed directors assumed the management OF tho
road Wheeler was at this time, with two others,
trustees for the second mortgage bondholders.
When Questioned on tho day Of the above cleo
ton AZ to the reason for a change in the man
agement OF tho road. Wheeler answered In my
hearing, In the presence OF others, In substance.
that the stock OF the Northern Railroad Company
OF New York was about all owned In Massachu-
setts by spectators. and that down there they
were rich, and up here In northern New York the
people were Door, " and" said he, we are de-
termined to destroy the stock and get the
property up here" At that time the said COM
pany was doing good business, making = large
amount over and ABOVE all expenses, and hav-
Ing a net income sufficient to pay the interest
upon all Its Indebtedness and divldened
upon it, capital stocA; It's business was
yearly iUCfUasn aud itS net income becoming
larger, and up to Auril, 1sji had paid the inter-
est upon its Indebtedness and was not In any
wise insolvent.
On Oct /, 1854 although the company had ac-
tually the cash on hand with which - pay the
inter ST then due upon the second mortg 20
bonds, the pretended Board of Directors re-
fused to pay sal interest, and on the 9th day
OF October. on pref nee that the road was insOl-
rendered the road to said Wheeler and his asso-
ciates Ms trustees. On this surrender, said
Wheeler and Ms associates assumed toe running
mn ar MT nf nR raan md haa iHaa ha
road, rolling stock, tools and nxtures a large
amount Of personal property came into their
hands.
In the summer of 1855, In furtherance OF his
claims. said Wheeler obtained an order Of the
Supreme Court eDjUininR the trustees from "
INK out, or using. or IN any manner disposing OF
any Of the trusts, property OF effects for any OBJ
ject or purpose except to deiray the ia and
proper expenses OF running and operating the
Northern New YOrk) Railroad. ana keeping the
same aud its furniture aud fixtures In repair and
protecting the same, and except also the inter-
ess OF the 1rst anu second-class bonds of the
SAID company, ana from paying in any IN inner
the n Eating debt OF the said company. anv
part thereof, or any interest thereon, cut of the
trust property or effects held by said truste g. &c.
In FeJru Try, 1855, foreclosure proceedin.s
were commenced Uy the service upOn clerk OF
the said pretended board OF a summons. &c. No
defence was intsrposed, and tue m liter was
conducted so quietly that none OF the stock
holders or second mortgage bon lnolders were
aware OF them, save one, aud he WAS petitioner
IA the proceedings. IN Aprii a decree OF fore.
closure and le was made. and on Oct. % tine
trustees bid In the ROAD and other property,
nominaily for the benefit Of the second mort
gage bOndnOlderS.
FIR IN the time Of the surrender 70 said Wheel
er and his associates (Oct. q, 1856. To August.
1855, when the road was reorganIzed under the
name OF the Ogden sburgh aud l. Ike Champlain
X lroad Company III Wheeler and his $50
GATES mad tue tossesston aud management Of
the road and LIS valuable properly. Daring all
this tine said Wheeler and his associates We
pretended TO render accounts for the gross re-
ceIpts from the business of said road, but said
pretended accounts have been untrue, md have
not corresp pended with the BOOKS Of the cOmpl-
ny. ana they h We rendered no .ccOunt at all Of
nor accounted for large amount OF personal
property received by them, aud during the
e.eyen years they had the management OF the
said road. they havA received property to the
va.ue OF at least $3OOOODJ. for which they have
not accOunteu. In aduiuon to TINS tney have
charged and received "A large amount for their
services as trustees. In reg ri u tue reorg mi
zi.iOn Of he road, under toe name Of the Og-
densOurgn nnd Lake ChamplAin II ilrOad Com
y INV, said Wheeler and MS associates pretended
u be opposed To the same. and they were paid
The sum of $4,000 to Withdraw their oppnsltlun.
In the ye 1850 the stocSnoiGe RS and the first
and second bOndholders conccivel 4 to be Tor
tnetr interest To consolidate their stock and
bonds. aud procured Dern issiOu to do so from
the Legislature. but said Wheeler posed tue
meme and IN naged to defeat the same. l.,
with "A mai irity Of tue other stockhul Iers, was
sure that the ABOVE scheme, conceived IN int
quity, WAS beng carried out ny frdul tina the
NOftnern Railroad Company - sui legally in
existence anu entitled TO 40 ir .nchl-e dnd prop
ertv, ami at meeting Of a majority OF the
stockholders, called ~ ali respects ccording to
statue and 1he bylaws Of the com any, neld
M,rcn Z, 1888. Board OF Directors was elected
anu | W Is appointed Presiden. thereof, ana pro
Ceeded To take the proper steps to ylndicate tue
rights Of said company.
rue saiu Mueeter Inen caused proceedings in
the nature OF quo warranto to De Drought t. Oh
tain a decree tna said company was dissolved,
AM to enjo,n me M my associates from act
lux as directors and TO deprive the stockholders
Of their Tiluts. ie.endinI tuat the frduchise OF
tne road hdd been forfeited under the statute
~ reason OF non-pavment OF certain deOts aud
non operation OF Inc rOai, when tie n d himself
rendered II impossible 10 pay tue deuts by re =
son Of the injunction obtained by him IN 1855,
ahove spoken Of aud had prevented the COM
pany from operating the rad Dy his scheme
.nd trickeTy Aforesaid.
| know whereof speak. I claim TO be the
President OF the Northern Railroad Of New
York. have many OF the books ami papers Of
the company Ia my nan q. | We made the
history. business nj condition of i'd CON pAny
| matter Of study ana Investigation, anu am
familiar with all the details. snd insist that
great wrong and fraud nas oeen psrpetrated
bat as by the proceedings IN the quo W iran 20.
we we're prevented from proving thls wrong and
fraud ~ the proceedings Instituted tor that uur-
stare las been exhausted, anu our only nCue is
IN the Legislature to Restore to Us our franchise,
rights. aud properly unconsututioully taken
from us; ana appeal to Ill vIters ia the com
iuG election to csnsure THIS great wrong aud
ira Il, and to elscG men who viii u mold the
right. john L. LONEhlN0.
LATTER, n. H., Nov. |, 1879.