The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-07-01
RAILROAD TROUBLES.
ANOTHER VIEW OF THE NoNroLArR AID
GREENWOOD LAKE RAILWAY DIFFICULTY
Mr.. GEORGE T. srEARNs SHEDS LIGHT on

ANorHER VIEW OF THE NoNroLAIR And
GREENWOOD LAKE RAILWAY DIFFICULTY
Mr.. GEORGE T. srEARNs SHEDS LIGHT ON ,
THE PROPOSED PLAN OF REoRG AVIATION.
There is a rather sharp quarrel now gong among
rival parties In the straignsening OF the affairs OF
the bankrupt Montclair Greenwood Lake Railway.
Antasonistic assertions come from both sides. In
yesterdays HERALD Mr.. William r. Mcdowell gave
OF the story representing that plan pre-
posed by Mr. Cyrus W. Field and others s calcu lated
to hurt certain class OF security holders and tho
whole cement OF the Committee NOT done In
fair play Below will 10 found interview with Mr..
George T. stearns, secretary of tho committee. Of
which Mr. Field is chairman. who pictures the PLAN
OF the com rnittee the only method by which tho
Montclair road can be saved from rum.
HISTORY OF THE DIFFICULTIES. Z
I'm order TO understand fully" said Mr.. Stearns in
answer 10 question, show the security holders Of
The Montcla,r and Greenwood Lake Railway Company
are placed may be necessary 10 say ut tho Oegnnins
that road Is nov for the second time N bank-l
ruptcy under foreclosure sale for August II next.
The capital of the company nominaly stands fol-
iows:-rhere is issuo OF first mortgage bonds Of
S70OOOO with lienss assrogatisg 500 900, which,
under the laws OF New Jersey, take precedencs
thereof also issue OF second mortgage bonds, OK.
grcsa,ng $780, 900. and 81 900 OF stock To
preserve tho road the bands Of the security holders
q plan was somo weeks since franco which met the
appreciation received the signatures OF Of
large inLeresis With antagonizlns intent meeting
was called TO be held the 18Th OF June at which
committee appointed. with instructions to iake
into the interests involved and 10 recon-
mend 10 the holders Of securities s'by circular ~
report 10 be made another meeting, such course Of
action Us their judsme would BIO TOR the best IN
terests Of all concerned" This committee, upon in
vestgat iou, adopted the plan which bad previously
received signatures OF leading parties and on Satur
day us provided by resolution, circular was sent
the security holders embodyiug tho Same, the sub
stance OF which appeared In yesterdays HERALD.
.srhe PLAN /" remarked tho reporter, 'prop 'ses 70
keep tho road still in the hands Of It's security
holders?"
ssCcrtatnly. The question has been surrounded
with many difficulties but boon very carefully
considered and the plan is believed to be emnently
fur aud equitable. 1t proposes 10 make certain CON-
binatons and connections, which shall throw
largely increased business the Montclair road
clair very doubtful one. rho holders OF the Junio
securities are likely 70 meet great sacrinces IL
road can eventually DO carried through 70 Albany
connections which be maze there valuable prol
erty would undoubtedly De developed and the oolec
now 10 the Montclair TO is security holders
In he bope y c0nsum nation may pe reachod
Unless security holders come 70 their own rsscus
,ue properly likely 10 slip away from their con-
..Whas dsss she plan propose that the security
hoi aers should dor"
It proposes that all obligations shall merged In
one OF stock and bonas; tnst the money rcqui.
site carry the plan execution shall be turnsnod
from sale certain portion Of these securitis
and tina. tho secoud mortgage eoAdhoiders Tor t1
WHAT do You think Of the plan proposed Il
McDowenY"
at certainly does not meet With my appreciation,
nor 10 know any ono VINO 'nasssss = save Mr. Nc
for wesk& IL tails 70 cover the essential ele.
ment oil success. l. would leave the Montcair stn
aA hnllQ nr
future. In iact, l doubt that Mr. Mcdowell
himsoli is fully wooded to MS plan, Tor as
Iate Thursday tina ofice and stated
to that II he could DO placed npon tne committee.
Of winch Mr.. Field Chairman, he would support ths
committees plan. He has MADE strenuous Efforts 70
get upon The committed, but he has entirely failed.
A. that interview he importunsd me Tor wow OF tbs
committees pan which was then denied until he mad
had AN interview with Mr.. Field. Al = subsequent
interview with him that day ne pledged me ms word
ronaly use OF IT, and by courtesy copy was sen. "a
him, which he received on Saturday morning rhs
ao ..' s on S S, %
matters punished In to-dsy's AxGALD shows how
"in snc interview to which you refer It Is stated
that several gentlemen declined 10 serve on the CON-
mitteeY
THE CoxMIrrEg's POSITION.
"a communication WAS received Mr.. Benson
declining tue GROUND OF illness. No ommanica-S
lions have received Ny the committee from Gov
riidsn Mr. Jesup, and lair infersnca
mad they desired 10 o;cupy the position IN which
Mr. Mcdowell places them they would have notinsd
,nclr associates upon cemmttse and not Mr.. Me-
DVwelL A Misunderstanding did exist IN the mind
OF Mr. Elliot, OF Troy, nut Tin letter from him VI
Juae II he ssys:--sl shall ROMAN IN cominittee.'"
ADO the members OF the committee possess con-
trolling interest IN the Montclar road?"
"rney were selected representative meu ano
hold very large interests Mr. Field 70 the largest
holder OF the nrst and second Issue OF hoods. He
heartily avors this pan anu viii largely cootribute
IN subscription 10 secure itS adoptioni 70
also other lending men sand pedgod. Let me add
that the committee representing the second Oona-
holders gave their approval with greater unsAimity
than Ia osc representing tho urst."
"Havs you ASSURANCES warranting the belief that
the plan of the mmitIee VIII be adopted ?"
iii is carry TO decide that question. Enorte
and com binaions are making 10 dccry the plan aud
destroy confidence IN the undertaking There 10
reason suppose That certain parties are hoping 10
lie able purchase the property Tor mere Dagaei!c
Ut uncss the sells for tnan enough
to pay Items aud the Gains OF the nrst
mortgage Dondholdets there will 10 uotning lett Tor
the holders Of junior securities. A comb nation Of
some tne part Of tue holders Of these junior
securities II, therefore, their only salvation bet
ter plan than tnat proposed by the committees hes
been repeatedly asked aud sought Tor IN si drec-
tons Inc confdencs Of gentlemen largely Intcr-
cstad tins matter Of reorganization aud consoiua-
tion mas been gwen 10 mo- and l would prefer that
they speak Tor themselves. IL " with reluctance
that assume - public attitude In The matter but ths
absence OF Mr. Field aud other gentlemen upon their
summer vacations seems To rcndsr " necessary for
me 10 state the iacts have given you"