The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-02-13
ONCE AGAIN IN TROUBLE.
ANOTHER BLOW TO THE CENTRAL
RAILROAD OF NEW JERSEY.

RAILROAD or NEW JERSEY
Receivers Appointed for the Lehish and
wiikesbarre Coal Compnny-Uow this AZ.
fects the Central what the Oncers Say.
At the suit " the Central Railroad Of New
Jersey. Mcssrs. Benjamin Williamson o. New
Jersey. T.. W. Clark of Philadelphia. and Will
liam II. Tillingbast Of this city were appointed
receivers yesterday for tho Lchgh and Wilkes
barre Coal Company by the United States Dis-
.r.ct Court Of Pittsburgh. and it is reported that
this decree is preliminary to application for
similar decree IA to the Central Railroad of Now
Jersey. 10 be made in Elizabeth to-day. Tho Le-
high and Wilkcsbarre Coal Company, although
maintaining separate corporate organization.
has during its three or four yenrs OF life been
substantially part OF the Central Railroad OF
New Jersey. Tho latter company. after many
years of growth and profitable management.
felt itself strong enough some four ycars ago TO
enter into warfare with Asa Packer for share
OF the coal traffic Of the Lehigh region Of which
the Lehgh Valley road had hitherto enjoyed
monopoly. To this end the corporate control
of the old Lehigh Coal Company was first Oh
tincd. Its product had long been esteemed
the best in the market. and its field. practically
incxhaustbe. had hardly begun TO bo develop
ed. Tho Wilkcsbarrc Coal Company also had
very valuable coal fields Although its product
was softer than the Lehigh, yet its veins crop
ped out ut the surface. and mines could bo de.
vcloped 10y drifts-thc least expensive mines TO
work. The only b0r to their remuncrativo
working was lack of transportation. They
were at the mercy of the Lchgh Valley Rail
road Company. which aimed to allow them no
more trade than its own fields were
the RRsaPass IA bhs o, TcsSt
and the Wilkesharrc Coal Company into n sew
corporation styled the Lehieh and Wilkesbarre
Coal Company, with nominal capital OF
slo,oOo000 Of which 100000 was presumably
paid up n % the realty owned TX The two compa-
Pres Lward Va h Parrish 2t hadepha G TGs
capital SITS Of the Central Railroad Of New Jor-
soy subscribed largely to its stock and guaran-
tccd It's bonds in return for u monopoly of trans
porting It's product Of coal. Since the CONSOLE
dati9n the corporation has issued f5oooco0 Of
bonds. most OF the proceeds of which have been
devoted to the acquisition q nlVrr coal terri
tory. sO that Just before the break Ia coal last
, In 1870 the miners struck and business fell on.
II was also noised about the money centre that
the general traffic OF the road had fallen III 80
much that the last dividend Of The Central road
had been paid out Of its surplus II was nso
suffering from It's interest IN the American
strike was adjusted. and a still stronger COM
was entered into in February last. The Inhirh
valley Railroad Company still refused to ulcdg.
Itself. hut made quasi agreement 10 make no
trouble. Thus both the Central RAILROAD II
make respectable showing in stock quotations.
=. II sectne. however that IN much pf this time
ireht 'Tny Th ,oEt wf n' ~n soi in,nams IN p{ms nj
debt was absorbing even the large profits S,-
cured 10y n. combination prices. Tbs most So
rious trouble b"gan IN August last, when after
manifold snnincs against the combination, and
iorgly,ncssi with promises OF am.ndment. the
l@high Valley Company had actually delivered
at tide, water some 100000 tons "f cual
more than its pro rata share. 1ho Cen;
trul OF New Jersey was not IN u financial
condition ior n fight and pleaded vigorously
Tor truce but the other parties to the comhina-
h" 1o asSSe o & hn9 ans' 6ca STrsd d
history OF the allied coal and railroad compa-
Keep W appearances and gct money enough to
keep their first mortgage hondholdrr- from
foreclosns. With salaries far in arrears, and
bonds ofthe Lehigh aud wilkcshnrre Coal Com
IHhy. this has been no easy task. Ihr last -l'-
~ thr-, bonds for ia. bond IL toy, q which az.
crucd a fortnight n,,o. That accomplished. il
was hoped that another turn might b. made 10y
hyvoth'oUiinr ti" same hohi5 AMI others like
Si00.ctp.
The assurance was given that now coal
combination wes on the eve of adjustment.
wien renewed vigor apd profit mus, result To-
eeon their trusted .-ur.ty ririn, $50 inrNur.hly
in their hands that they hr-.tai.d bel. re- sink
ing moro capital in tho sane w,ll. Tho loan is
not forth oming. and when tao stockholders
learn that the bonds oi'rr to secure il ara
,h,se ,lio, of ,riHi9Y mnneah cotrSrallG,a II
~
lit viii be largely Increased now.
=, Nj. S4mgc, knoX. Irnsurrr ~ The Centr9l
IN" ,oil company has gone into the hands ~ n
receiver. II Wlll b" hard H. save tn" railroad
.9mpany, Ihry VIII stand or fall together.
that tn" C"nirals shares went Of yesterday 10
49,, from II. the opening price.
All surts oi runor- were alloat, Sue aS the
transfer Of the company's Offices to Elizabeth
and the atta.hment Of its deposits in several
city banks. These rumOr- got upon the street
too late 10 bear the market much. the decline
noted having resulted almost solely from the
proceedings against the coal company.
Mr. Opdykc, of the law firm Of Miller. Pect x
Oldykc, who. II Mas runOred, were acting for
IN" creditors Of the railroad company. and had
attached funds deposited in various banks in
this city said vest 'rday that his firm was re-
tanned N the, Interest Of j. 4 Il. J. Gray only.
II" knew npthin-. whatever about the present
cmharras-mcn's Of the railrOnd COMPANY, his
clients claim upon 1t being based ON "a suit
Tor damages NOR" than ten years ago, ia
Chancellor Williamson snld. ut his house in
Elizabeth las, evening. that he know little about
The rumors rNcelt that hr had b.-'n informed by
telegraph from Pittsburgh of disappointment as
rNceVcr. the suit lac uulerStood tp he brought
hy the Central Railroad of Nfw Jersey which
lud taken M s5.Op.iDJ Oi ia" bonds Of the I.r-
high and Milk'Sharre Company and also WIS
creditor for tolls nmounting to g. .aooprO There
wer" sli.Viu.VO OF these bond. IN ia" market for
which tn LuhEh and NilNesbarrc Cpupanys
stock nnd mining property were plr'lg' d. II"
know little about the assets of the company. but
its min'- were pOpulnriv aouSit"rrh I" hn worth
double IN" sum II" supposed NE New Jrlery
Central hnd tukrn thr - y hnd to serurr iis ~
in case of iurth"r depreciHton Of coal ia
price. II WIS the ihIl IN onl, ui course. that had
barre with the othrr coRl comitncs. When
cOnl did not soil for what II cost - mine and
transport II t. mnrs"t thoru wns small profit IN
hnndliu- H. The Chan roor concluded hy rN-
planning the iusttuiin. OF thosuit i'm Pttsbull,h
on the ground thnt the defcndnnt's property
WIS IN tho wcrisrn district Of P,nnsylvaniu.