The New York herald., 1877-02-15
NEW JERSEY CENTRAL.
Judge Francis S. Lathrop Ap.
pointed Receiver.
EFFECT UPON WALL STREET.
Interview with the Appointee-He Will Begin
His Duties To-Day.

The Court of Chsncery crowded TO excess TINS
morning by prominent railroad men and members OF
the legal profession, among whom were noticed H. u
knight President OF tho New Jersey Central and the
Delaware and Bound Brook railroads; A. G. liichcy,
director and counsel Of the latter corporation; John
Taylor Johnston OF the New Jersey Centra Attorney
General Jacob vanatta Courtlandt Parker, ex-Chan-
ceor Williamson, Abraham Browning Thomas n.
McCarter Barker Gummerc, j. G. shipman and Lud-
low McCarter Chancellor Theodore II. Runyon pre-
sided.
Mr. Browning addressed the Court and said that he
held in his hand Showing paper bill of the Lehigh
Coal and Nav CATION Company, which sets forth that
the New Jersey Central Railroad Company is nsolven.
He therefore asked for injunction restraining the
company from further action under its charter, and
also toc the appointment Of n receiver He asked that
either MI knight or Mr. Williamson be appointed re-
eever.
The Chancellor examined the bill, and said that there
appeared to be good tor the appointment ol
receiver.
The Attorney General asked II the granting OF tho
information would preclude the court from giving
parties interested an opportunity for hearing. The
BILL he said was important and several great questions
arise on II. The company owned railroads in Penn
syvana, and tho foundation OF their debt was alleged
to be tho result OF the lease Hc thought the parties
should be heard. The leased roads in Pennsylvania
extend the length of the main read The bill asks
lor continued carrying out OF these roads under
tho management Of receiver and whether they
should be question worthy OF hearing, and there.
fore further time should be granted.
Mr.. williamson said the Central Railroad Company
had the authority to make the lease The lease
advantageous one and tended to the salvation OF the
company. Tho leased road companies would ne glad
to annul the lease and pay bonus therefor. 1t was
the coal company in connection with the Lehigh Val
ley Coal Company that dragged the company down.
lease might be highly advantageous TO the Central
Railroad Company.
The Chancellor interposed--One point here is how
FAR is the Court to inquire INTO the bona fde Of the
debt and further, how TAR immediate action is neces.
ary in selection OF the officers to the roads
II out OF the question for the Court TO determine
or take evidence whether tho claimant is cred
itor.
DoUBLE-HEApED RECEIvERsnIP.
The Attorney General sad the should be
officer OF this court in the interest Of any par,ic
ular person, but who could see the interests OF all
concerned. There was hardly family OF any means
that does hold stock in the company, and many
had their all invested in its securities He had no am.
mosities crafty pets TO favor. he would suggest
The visibility of double headed rcceivership and
would oppose the appointment OF one not citizen OF
the State lie would nominate Judge Francis s.
Lathrop.
Tho Chancellor said he had resolved to appoint but
receiver, he 10 DO under the jurisdiction of the
State.
Senator John G. Schultze, of New Jersey.
The Chancellor inquired II he should appoint a re-
ceiver within few hours.
Mr. Thomas n. McCarter said:-"The case demands
prompt action. The property Of the company In New
York already attached by creditors. For obvious
person well acquainted with the operations
Of the company would be better qualified Tor receiver
stranger II imposs bic TO consult all
the stockholders wishes.'
MIR. Courtandt Parker said the practical result
ought to be looked after. He hoped the future
ngement OF the road would result IN appreciation OF
stock the protection OF the stockholders Bond
holders representing So COO worth OF stock held IN
England had asked by cable for the appointment of
Mr. Potter. gentleman bad sig nallzed himself
receiver of tho Atlantic and Great Western Railroad
Company.
thousands dollars worth OF property Of tins CON-
pany Pennsylvania would be attached by creditors
and the coal BUSINESS Of the company would thereby
be destroyed He represented about 81 000 900 worth
OF claitis against this company In view OF what the
Court had said he withdrew the name Of Mr.. Knight
whose appointment would DO cmnently proper
Mr. Built OF Philadelphia, also addressed the Court
In the interests of the Pennsylvania stock
holders. He insisted upon prompt action.
JUDGE LATHRoP APPOINTED.
The Chancellor, alter "A little delay, decided to APP
point Judge Francis s. Lathrop, OF New jersey as re-
Mr. Lathrop is a lay Judge of the Court of Errors
aud Appeals, and also mem bcr OF the Court OF Par
dons lie resides in Madison, Morris county, in this
State.
The bill sets forth the tollowing:-
The Lehgh Coal and Navigation Company, corpor-
alton the state of Pennsylvania, creditor OF the
Central Railroad of New Jersey and nles the bill on
behalf Of itself and other creditors. Tho bill recites
the fact OF the Incorporation OF the Central Railroad
and also OF the Lehigh Coal and Navigation Company,
the leasing OF the latter company to the former at
rental onehrd Of the receipts from the trail
ic and business of tho leased company, and
pay the interest on the bonded debt of
s23lO, 900 semi-annually--in June and December.
That the Central Railroad is nsolvent, having
failed pay the compainants 1921 600 due for rent
January last; also promissory notes amounting Ia the
aggregate to S250000 which become due on March Z,
1877, amounting in all to s6i200o, besides the
S23l0, 900 purchase money OF the rolling stock, &c
ire bill uather sets forth that the properly of The
Central Railroad Is mortgaeed to the extent
OF S25, ,0OO, 000 tho payment Of interest thereon
having been lately made with great difficulty,
and that, besides, the mortgages and the
Indebtedness duo to the complaDants, the Central
Railroad is indebted to the State OF New Jersey IN the
OF sl31 900 for taxes due and $500 coo TO its en-
poyes tor arrears OF wages. creating IN all the 1oat
ing Indebtedness OF some $50 100000. The company
Is hopccssly nsolvent. The bill prays for an inunc
tion and the appointment OF a receiver Attached to
1t affidavit OF Edward W. Clark, President of the
Lehigh Coal and Navigation Company, corroboratng
The foregoing allegations.
The following substance OF the order Issued by
the CHANCELLOR
1t gives the receiver power. under order of tho
Court SELL convey and assign all the real estate and
personal property, and pay into the all moneys
and securities deducting such compensation a the
Chancellor shall allow that 1t is made his duty TO
and operate the railroads described IN the bill OF COM
plant well as those lying in the state of New
Jersey and also those connected Herewith and
leased also the ferry the casterly OF the Cen.
tra Railroad from Jersey City to New York; that he
shall power and authority to preserve and protect
the corporate privileges, franchises and property Of
company
proceedings which shall or may be taken by any par
lies tending produce sacrifice OF the property
mted 10 the said receiver as Aforesaid.
The RECEIVERS bond was fixed at $500, 900
An INTERVIEW LATHRoP.
Judge Francis s. Lathrop about sixty years OF age
and is SAID TO be millionaire. He acquired his
tune in the mercantile and insurance business. AZ
time he President OF the New York Chamber Of
Commerce, and he Is now "a member OF the Board OF
Arbitration attached TO that body
Chancery Clerk Henry 5. Little and many other lead
ing men say that the Judge the aDlest busi-
mes
Is rarely cquaed His appointment gives great satis-
faction, aud he Is one OF few who fted for the
emergency and who Is believed to be able put the
road back again TO solvent condition A reporter
OF the HERALD bad interview with the
Judge this evening. Judge Lathrop said that he did
not Know that his name would be mentioned In con-
Lecton with the appointment until he received tee-
gram at O'Clock announcing that he had been ap-
pointed lie accepted the receivership, but his bond
alnd lecnnsn he hid hcn ahlc M 90