The New York herald., 1879-01-01
ANOTHER WRECKED RAILROAD.
THE CONNECTICUT VALLEY ROAD TO PASS INTO
THE HANDS OF THE FIRST MORTGAGE BOND
HOLDERS BY FORECLOSURE.

THE CONNECTICUT VALLEY ROAD TO PASS INTO
THE HANDS OF THE FIRST MORTGAGE BOND
HOLDERS BY FORECLOSURE.
HARTFORD. Conn.,, Dec. 81, 1873.
After numerous vcissitudes and hanging upon the
verge OF bankruptcy for years the Connect
cut Valley Railrosd Company will next month pass
under the control of the first mortgage bondholders
who will organize stock company with 8 000. 900
capital The Valley road chartered in 1868 with
Sl.500OO0 capital stock. and WAS opened TO travel
on the of july 1871 Il extends from Hartford
saytrook Point distance of about fifty miles along
the west bank Of the Connecticut River and furnish
ing good accommodations for the residents Of the
towns along that stream. The stock freely sub
scrbed for by the towns, but the entire amount
expended in construction. aud first mortgage bonds
were issued aggrceating round million. About
second mortgage bonds aggregating 81 .250 600.
issued and were taken in lump by the Charter Oak
then being president both Of the road and the in.
surance company. Despite the large amount that
had been expended the road never paid. in its best
years much beyond the running expenses and inter.
est on its bonds regularly passed.
roRkrLosrRE IMMINENT.
Under the provisions OF the charter the original
stock and the second mortgage bonds are to-day
worthless In January. 1860. the State Treasurer
took possession OF the road a. trustee for the rs
mortgage bondholders. the others holding interest
In the property having year within which 10 redeem
il on make some satisfactory arrangement. This
time tho State treasurer will bring TO the Superior
Court petition for foreclosure. When the road
thus passes into their control the fret mortgage
bondholders intend TO organize Q new COM
pany each holder Of bonds to receive its
equivalent in stock-&1.00 of stock per $1,000
OF bonds. Those hrst mortgage bonds, with
tho exception Of o few held in New nYork city
and in London, England. ere owned In Connecticut
and Nwiliarn Boies President Htllycr, Of the Char
ter Oak National Bank; 7. NJ Allyn aud tho Phoenix
Fire Insurance Company. all of this city are the
largest holders. II Ia expected that the reor-
Qanization will infuse life into the company and
under sntcipations OF change for the better with
the new management. the bonds have gone up from
last weeks quotations. This stiffness of the hold
ing price Is attributed to belief that
tho bonds worth nearly par, and IL is
known that some of the larger holders
are picking up in the markets all the small lots they
can find. The presidency of the now corporation is
not yet discussed but IL s rumored that the superi-
tendency will go 10 one of two gentlemen who have
held somewhat similar positions ia the Hartford,
Providence and Fishkill lailroad Company before its
recent transfer to the control of the New York and
New England
Thus In little over seven years a road which cost
over millions to build aud equip will pass into
alone will get the benefit of thon entire investment,
leaving the original holders of stock and
the second mortgage bondholders 10 lament
their losses These secured mortgage bonds. by the
way, the ones that were passed from the Char
ter Oak Life Insurance Company 20 Edward Mat
thews, of New York, in the matter OF the Furber
three milton purchase of broadway and other down
town property. They are said to be yet held by Mat
thews,