New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-02
LINES IN DEFA ULT.
INTEREST UNPAID BY L. l. ROADS.

PAY INTEREST DUE-HEAV1 JUDGhENlo OD-
TANNED BY CONRAD PoPPENnUsEN.
Many rumors were aflOat on Wall-st., and
elsewhere yesterday concerning Messrs. Poppenhusen
and the leased lines and branch Of the Long Island
Railroad first reported that the Poppenhusens
had failed and were unable to take up their paper which
matured yesterday. This story attaccd universal aten
ton and created small excitement. 1t was not vei
fed but subsequently learned that there had been
a default on the threeanda-half per cent interest
on S250.0OO bonds Of the ROckaway branch OF the
Southern Railroad of Island which leased by the
Long Island Railroad. 1t expected that the money
TO pay the coupons would be depO sed before the close
OF the day in the st. Nicholas Bank The failure to pay
this interest amounting TO over $4,000 started the r
mors An Investigation showed that the interest on the
bonds OF other branches has been due over month,
and rs yet has not been paid The interest on large
portion of bonds of the Central Railroad Of Long
Isaud has been due since September l. The same thing
true of the bonds Of the Shutdown and Port Jefferson
Railway. respect the latter road the Long Island
Railroad Company recently issued the following Circular
TIE earnings OF the smthtown and Port Jefferson
Railroad Company during he past year. have not been
sufficient to pay operating expenses. The SmithtDwn
aud Port Jefferson Railroad COmpanys now indebted to
this company in an amount exceeding $4,000. This
company il advised that II IL not liable tor the interest
upon the bonds OF tue smitntown and Port jefferson
Railroad Company, and therefore refuses to pay the
same.
Dated, August 81, 1877
Conrad Poppenhusen tho father Of tho President OF
country hon Germany played important part IN con-
nection with the leased lines yesterday. lie obtained
Judgment Long Island City, against the Southern Rail
road of Long Island for S374 3O7 as. and against the
Flushing North Shore and Central Railroad Company
for 49, in both for money loaned with in
terest. prominent official of the road stated to
reporter Of The TTBUYE yesterday, that Conrad Pop
penbusen virtually obtained the judgments against
himself as he owned very nearly the whole stock Of both
railroads. The official disnclined 10 believe that
Mr. Poppenhusen intended by TINS means to gain entire
control Of the roads by crushing out the smaller stock
holders. This official declared that the affairs OF the
roads have been in embarrassed state for long time
past The employees have not received their pay regu-
iarly. Recently the company has been paying them
with little less delay, but IL Is still behind IN its pay
rolls.
TRIBUNE reporter went out TO College Point, L. J..
last evening and called at the residence OF the Mcssrs
Poppeuhusen in order TO learn something definite IN
regard basis OF the rumors which were in crcua
ton The three brothers live short distance from the
railway station in handsome country villas. Adoph the
oldest brother and the President of the Long Island
Railroad occupies a very large mansion in spacious
grounds which crown hill When seeu BY the reporter
he pleaded his business too pressing for him to
enter into any conversation. lie emphaticaIly Denied
boveyer that the Poppenhusens had personally failed to
meet their engagements. Some OF the roads nave not
been PAYING said he and Of the teres. cannot
he pad In regard to the accrued interest toe bonds
OF the Shutdown and jefferson Railroad and Of the
Central Railroad Of Long Island. NJ POppon huscn said
they had fully determined not to pay that interest The
running expenses OF these railroads had noe been GOV
cred by earnings and they had been advised IN con-
se1uence not TO make any payment IL IS Impossible
FOR me 10 say" he continued. whether the directors VIII
nay fine interest ON the bonds OF the ROckaway Branch
4 meeting of the board Will decide that" He declined
10 say why II necessary to cal meeting OF tne
paid He said that he did not know whom the meeting
would be held Iureaon to the runor that some OF their
In dania ru1 aT "A
mistake as they had sufficient money TO meet all their
paper. II any note had been protested, II must have
heen through an oversight His fathers arrival here,
and obtaining judgments for over SSOO0OO against the
two roads previously mentioned lie Thought were not sig
nlflcant His father accustomed to travel between
this country and Germany very often Whiie here, nc
simply took occasion to make his money secure. MI:
Popoeuhlsen hurried away from the reporter, saying
that the pressure OF business would not allow nun 10 re-
eral people IN close conversation but whether or not
they were railroad men, discussing interest on bonds.
In the effort to obtain all possible Information the
subject the reporter called upon the other brothers.
Herman C. Poppenhu;en Treasurer OF the Long Island
Adolph. The two houses built somewhat alike.
tended TO b sness as closely heretofore. He said that
his information very limited and referred the re-
porter to his brother Adolph, the President OF the
Further along the road and adjoining the grounds Of
Alolph POppenhusen, is the estate Of the youngest
atner is residing at present. The father and
seen together by t1e reporter Alfred Poppenhnsen SAID
that lila time was altogether occupied with the rubber
business in Mercerst which they were all engaged
lie knew nothing whatever about railroad matters ana
was not oven director OF any OF the FAIR ads conrad
Poppenhusen n thorough German ana spends most OI
mandatory. He would doubtless be able 10
tell a very interesting story about railroads,
bar his of hearing by no means acute, ana
takes powerful voice to make tue old gentleman hear
He said last evening that the Long Island RAJ had
a natural consequence OF BUSINESS not due now
eyer sG to er ns aected ohr branches Ills Visit
to this country not Occasoned by the embarrassed
degred II to understood that he had not levied upon
the roads. He WAS SIMPLY getting BACK the money be
mad loaned the companies several years ago III was MS
own money, taken from his business. concerning tne
unpaid the bond he referred the reporter To
The meeting OF the Board OF Directors which will prob
ably occur to-day tomorrow. will DO looked forward TO
=. B. Miusdale Secretary OF the Long Island Railroad
COMPANY positively refused 10 anything about the
for the action taken yesterday by Conrad POppcn
hr,en against the Southern and the Flushing, North
shore and Central Companies He dee med either TO
confrm or deny the rmOrs but admitted tuat he knew
ALI the matter and could explain II he wished to
The members Of the Poppenhuscn family have been
prominent the ndlarubber business Tor many years
importing ndia-rubbeF very largely. Their place Of
business Is No Mereerst 1t has been generally be-
oYed that all OF them have accumulated great fortunes
i'm this branch Of trade, and their railroad operations
have extensive AS 10 confirm the Deicf mat ney
are exceedingly wealthy They acquired large blocks
Oliver Cnarlck and eXMayor Hayemcyer great part OF
interest OF those two men IN railway traffic on Long
obtaining control OF the Long Island Railroad ana get
ting possession OF many OF the shares, which lad been
he'd IN the Hayemeyer family, the Poppenhusens ex-
handed their plans to incade the grasp OF the entire
railway system OF Long Island They were successful
In their efforts last year and the total length OF lines
owned leased. and operated by the Long Island Rail
road which controlled by the Poppenhusens' Is over
s0l miles. - 49,
The Long Island Railroad chartered April &c. 1884.
and the road opened from Long Island city To
GreenpOrt July 20, 1874 Tae Smithtown and Port JEFF
ferson New-York and Roekaway, Newtown and Flushing
aud Brooklyn and Jamaica Railroads were constructed
under separate organizations and leased to tie
Long Island Railroad Company on completion, ana are
now considered branches OF the main line.
The Flushing. North Shore aud Central Rail
road and the Southern Railroad OF Long Island, with
H.. .l..... Nil ln Ii