New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-02-13
THE EMBARRASSED COMPANIES.


tNTIMATE RELATION OF NEw-JERsEY CENTRAL WITH
THE COAL GENERALIZATION THE APPOINT
MENT OF RECEIVERS WAS MADE INBvITABIE-
EFFECT on THE $4,000. 900 CERTIFICATES OF
INDEBTEDNESS.
The Lehigh and Wilkesbarre Coal Company
which yesterday passed into the hands OF receivers
was practically part of the NewJersey Cohuai
Railroad Company their relations being similar 10
those which the Philadelphia and Reading Coal and Iron
Company sustains to the Philadelphia and Reading
Railroad Company. The Lehigh and Wlkesharre was
organized Jan. l. 1874, by the consolidation OF the
Honeybrook Coal Company and the WilkesDarre
C,al and Iron Company, and by the purchase OF
the Plymouth and Newport mines belonging to the
Lehigh Coal and Navigation Company It's president
was Charles Parrish Wlkesbarre, Penn, and Its sec
rotary and treasurer William H. 1ilfnghast oi TINS
city They have continued 10 hold these offices up to
the present time. Recently, however, r. w. Clark oi tie
banking firm of f. W. Clark Gu. of Philadelphia was
made chairman OF the Executive Committee, and it was
understood that this appointment was to limit Mr. Par
rs control Of tho company without directly dispacng
him.
The official statement OF the company made 10 tho
Stock Exchange under date OF Aug. 90, 1875. upon
which its bonds placed the regular list OF the
Exchange stated that the company owned 1920 acres
OF land % 500 acres OF which coal lands The en-
tire property with improvements, cost $23o0oo00 The
capita stock 900; bonded debt 10OOOOOO;
floating Indebtedness. nearly S4 100000, which was sub
EPQucntly ID
consolidated guaranteed mortgage Tor Slo,OOO,OOO
had been previously for the purpose Of funding
the floating Indebtedness Of the company and providing
for the retiring paying OF the outstanding bonds ana
the further development OF the property. Bonds OF
$1,000 each were issued April 27, 1873,
payable June /, 1900. with interest at 7 Per
cent currency. These bonds were guaranteed
by the Central Railroad Company of NeTJcrSey.
The old bonded debt Of Sl0000o0o was, IN fact debt
Of OOo 900. bearing interest at per cent. gold OF
the SO 100000 stock, the NewJersey Central Company
ownod over one-haf When the directors of the New
Jersey Central December last authorized the Issuing
OF So 100000 OF certificates OF indebtedness TO meet
pressing demands, IL proposed that these certlf1-
Gates should be secured by dcpositing with
the Guarantee Trust and Safe Deposit Com
pany Of Philadelphia tho above mentioned
mortgage bonds in the proportion of $1,000
in bonds TO every $1,000 OF certificates issued AT this
time the bonds selling ut 60 cents Oh the Col
lar Great efforts made 10 induce the stock aud
bond holders TO take these certificates upon the security
offered but without success Less than one-haif the
certificates beer subscribed for including 100000
by the Lehigh Coal and Navigation Company III pay
nen OF past debts. No part Of the subscriptions Is
binding until all have been taken.
As stated in Saturdays TRIBUNE. the directors Of the
New Jersey Central with the exception OF Nj Knight
md Mr. Johnston abandoned all hope of securing the
necessary funds and strongly urged at the meeting on
Friday that application be made at once for receiver
Mr. Knight was finally successful in pOspoaag such
action in order to confer with the directors Of the Len
Coal and Navigation Company In Philadelphia, on sat
dav The result this conference that counsel wer6
at once sent TO Pittsburgh to make Application
for the ainointment Of receiver OF the Lehigh and
Wilkesbarre Coal Company, which is Pennsylvania
corporation. The application was granted yesterday
and f. W. Clark appointed receiver for the state oil
Pennsylvania ex-ChauccOr Williamson for Ncw-Jcrsey.
and william IT, Tillinghast for New-YOrk. Mr. CLARK IS
President the L-hgh Coal and Navigation Company
Application will De made to-day 10 Chancellor Rrnyon
OF NewJerscy for the appointment OF receiver OF the
New jersey Central Railroad Company The receiver
il is understood, must be citizen OF NewJcIsey'
Several persons have been mentioned for tn"
position among them being cX-Chanccor williamson.
II coud not be aScelained last eve ing WHO
had been selected the choice OF the
directors After the appointment of receiver it Is
understood that the principal Office OF the company
which Is now 119 Liberty-sJ., will he removed to
Fzabe-h y J. The report circulated on the street
Yesterday that company then removing is books
and papers 10 New-Jersey but this was denied ny MI
Knox and At ) O'Clock there was no apparent evidence
Of such a change taking place.
Under the influence OF the rumOrs ahcat III regard 10
the company yesterday NewJcrsey Central stoc wnch
opened at 1s declined TO l52 and finally closed ~ lJ'i
with 5Ss bid The sales amounted to 279OOo shares
LAhigh and Wfkesbarre bonds have greatly Declined
since the first Of the year. An indication OF the Naue Oh
The security which they offered for the authorized Ger
tHces OF Indebtedness shown BY the TACT lAat uel
closed yesterday al 49,
The transfer of properly Liberty. West and WASH
ingtop-sts. by James A. Hamilton 10 the New-JerScy
Contra! Railroad Company and then by the company 10
E. c. Knight Its President, recorded yesterday In
both transfers the consideration given az nominal
MI KnsAt went yesterday 10 Ph&ieiphil ana ms eE-
plauatiOn Of the matter cOulu hot NC 'r,i w..
A gentleman who has been cOnNeisaht Win tHI
c0uipaUy's affairs sand the properly was uuJUTSa
several years ago from Mr. Hamilton anu t t uo
aiian estate, but be could NOT give the reason WY c
record purchase OF old date was deiai ca % 49,
telday. could he tell wEy IL was recorded as lheu
the naming OF consideration III clIheI e'Se r =. "a "a
suggested the transaction might be IN some way iot
the benefit Of the Stockholders o uG fW
the satisfaction OF all individual claim OF mr. hhSnts
gentleman who has owned cOhsIntIaolo A'., oS' go,
adjoining the land and buildings transferred 4estlI"g
said that this property had always tcn fcadeu us De
longing 20 the NewJersey Central IN Iac thosc OWL
ing the rest Of the real estate III Ea, ploeh a ~ @
holding 1t with the view Of dsposing OF the Whole 70 he
New-Jersey Central Now 1t would prOOaDi! ntEe ~
regard TO the cOmpanys holding real estate IL us
own name. and property owners III me helghDo as
hood expressed the view yesterday tbat J1in.s
AY Hamilton al been holding TINS property
merely trust for the railroad company h. e. hhish
thNPrcsident, bad probably advanced money 70 the cor
nortiop and both TO secure him for his claim and to
provent attachments being lad on tue pIDiel! ~ was
transferred and the deeds reeoldeu yestsioa{. foo"
ing Is a copy the record IN the Register Once
West north east corner OF Liberty also no lO1 "TstSI
EAST side 50 feet uortn JbeIy-st also No l43
Dey 81 aso I 7s Sst feet north Of
No Hunton 70 Central railroad OF Ne"JoiSey
Ssiue nicpcry Central Railroad OF NcwJcTsey TO IT, C.
e,Is OF tee NewJcfsey Central Railroad in the
Rank of Commerce were attached YESTERDAY TO compel
The company give security Tor Judgment IN ,he sut
purchased several years ago. Inc case pCiis '.oiu
acInst tHe company in the lower court the company
siI,taled 10 the Supreme Court, General Term Inc
psIntins demanded security ana atacheu .ne uoi,,
m to Hank Of Commerce. The officers Of the company
assured the plaintiffs yesterday that they were ready 10
goye ample security, and the necessary n
he