, 1876-02-26

INVESTIGATION DY LLGlaLAT1fE EoN1IlFTEE-
spee1a! Correspondence Of Tie Chicago tribune.
SPRINGFIELD. hfaas., Fob. 2l.-An Interesting
Investigation began yesterday before commit
tee of tho Legislature. namely: Of tho chafgca
brought againBt tho Boston l. Albany Railroad
management by Francis q. Hayes. ono OF the
State Directors OF that roAsl. rho noat inl-
porlant os theHo charges, or at least tho
one Of most general interest, Involves whnt
o1s. IIayes considered decidedly aharp
practice on Tho part OF Chsster W. chapiu,
President OF tho Boston Il Albany, in connection
with tho lease OF tho Waro Ilivor Railroad, Ho
charges that prossdout Chapin negotiated tho
loaso on torms peculiarly favorable to tho bond
holders, and that, at tile timo the lease waa
mado. majority of tho bonds were hold by Mr.
Chaplin himself, or by moubers Of hia family,
and that thus Chapiu msdo mighty good thing
for himecif ut the o1ponae OF tls road Of which
he is President, and whose interests 10 ought
To havo particularly looked to. Such d charge
aB this, coming from one Of tho State Directors,
supposedly nblo to back up MIS- assertions With
proofs, excited gouoral inquiry, aud set people
to examining into tho matter.
TIE FACTS Anour THE wAng nIyEH LEAaE
AZ published and not denied by tho Boston Il
Albany management, arc in substance these
Tho Ware River lsat}roaa Company Was organized
In 1867 for tho rnrroso Of building railroad
from Palmer, On tug Boston d Albany llna about
distance Of about 10 n,lles. Work was begun IN
1863, and tho following year 10 mtleB OF the road
wcre flushed aud opened 70 tho pnhlic Tho
contractors worked about = year longer, and
lhun having tnken much OF their pay In bond8
which they wore unable to reaze ont became
bankrupt, nnd In the fall OF 1871 abandoned tho
enterprise. At that timo tho road had boon
about two thirds completed, and Of cnusse waa
rthk}q avri$fx
fclent mcans ut command should tako hold and
finish it. For about year and 4 half nothing
further waa douo, and tho bonds rnpidty de-
procated.
NOW AppEARs an. cHAp1N
on tho Bceno In tAe latter part OF 1873 be bought
Of q Now York firm. which hAd received thom from
tie contractors In payment for iron, 3 largo
number Of tho houds, paying therefor about 10
conts on the dollar. Ho also, In d quiet way,
purchased Of other parties, paying from 90 70
~, until Of the whoio amount Issued (s750.0oo)
thore stood In llls Own nano aud In the uRmea OF
mpmbors Of hiB family clear majority, which
had cost him on tue average only Gu cents on
tho dollar. During the Legislative RoHslpn of
1879 worry innoeont-appeari bill was passed.
providing that, should the Ware River Railroad
10 sold ulldor foreclosure, tho purchasers might
reorgantzo under the sau,o nano and hayo all
tho Tixhts. powors, aud franchises Of tho old
roal was sold under foreclosure. aud
was bought by hlr. Chapln. III bahali Of
Tue tondholders, for Sa75ooo. Tho ;. prop.
10 aeon lle had q pretty good bargain there. The
original boulholders woro gigon tho option OF
putting thelr bonda into tho uew company. which
WAS TO DO formed, at par, Of OF receiving 50 por
boudLu'dcrH, having little faith in tho prospects
Of the road, aud Of courao not knowing hIr.
CIhpln's plans. preferred tho cash; otheEs. coll
tont TO follow where - Old Chaplin led, hold on
and, ~ tho soquel shows. noro wtao Iu do!nE
70. 49,. ...... -
iu June, 1873, the now War9. River Railroad
Company wns formally organized, JaMos A..
lsumrl!l, Of Springfield, Mr.. Chsnln's son-in.
l.w;-being ehossa President, william liam hisohio,
which 10th Chspin and Ru!afii wara
usembers., Tho other Directors we're
presumably n ,o,1a chHpi1s ants1ost .,u. ~
uik months before, and could elect whom he
chose. Work mha Immediately resumed On thu
road, and in December, 1873. tho cutro limo was
completed and opobod to travel.
80 fat, there had boon nothing more than q
legitimate bnaineas operation on the part Of Mr.
Chppn and his assaclRteB. II tloy choae 70 in.
yost 1tsir surplus funds In tho Ware Niyer Rail
road, 1t waa nohody'H bu8incHa but their own,
IEotty koon, h0waVer,-ara hero IL wli9ta
| THE HHARP PNACTlCE
~. Aayes complains OF Gomez iu.-Preaden'
chsp,n intisuated ~ the Doston 4 Albany Dreo
soss that T., y Il might 10 good thing for That road
oatasnea TO iaasa tn' Ware 1ver Linz Having npllc
had led linn to ilis.pptovo o.
several leases Which hid bcon talked q
bcfors, The Directors took kindly to tho idea ant
This Committee reported fAvorably, aud lease
waa accordingly unde and siguel Ly Mr. Chapin
~ President Q. the Boston Il ALBANY lioad, ant
Had fi1,tu vn IN .la}1DnrV 1k7i FThm IL .