New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-04-16
DIsAILoWFD RAILWAY BONDS.

HOW AND FOR WHAT BONDS WERE lSsUED'Bi Ihh
NEw-YoRK, NORTHERN AND HoUsAToNIo RAIL
ROAD COMPANY.
In 1869. the Southern Westchester Railroad
Company was organized and in 1872 was consolidated
with the New.YOrk Northern and Housatonc Railroad
Comuany and under the latter the property was
mortqaeed and bonds were issued TO the amount o.
go 100000 The first coupons on the bonds became uue
April l, 1873. but they were never paid.
An action was begun OrecOse the mortgage by the
trustees in behalf OF bOndhOders. In 1876 MI Jonh
H. Clapp OF Port Chester, appointed referee to
take proof OF ell the bonds and report on tho validity
Of The sans and sell the mOrtRaged property On the
third day Of tho present month the property In quesoh
vas sold 10 Dwight studwell for S111O0O and tho re-
nort of the referee was filed with the Clerk OF West
chcster County on Monday last. From TINT report IL
appears that bonds tho amount Of Sl'7OOOOO were
producrd before the referee. or these only T0OOOoO
worth have been allowed Among tho largest claimants,
ono Lous d. Rucker an expresident Of the road, who
produced bonds and claimed to have allowed MIN
S1I17OOO OF these ho was allowed $4,000. He had
loaned the company SSl 000 and then being pre+dent
OF the road no obtained possession OF DOnds 10 tue
amount Of Ss1OOOO under the reteXt that ho should
hoye them AS security for the he had advanced
and Ia was allowed 70 have the bonds by his
cc-directors. OF tho balance Of the bonds he got
$3.50 600 worth, for WHOM he paid $l2.5OO They had
been pledged to the Eew-YOrE Loan and Indemnity
Company AS security tor Il loan OF S2oOOO FOR tue
maid by Mr. Rocker 10 the NcN-loIh ifvhh wv"
indemnity Company the latter signed over to him tho
ouds ana ali claims which they held against ne rail-
road company The balance OF the bonds wbich ne
claimed came Into his possession tnrOnIh enltToct
nnJ hefwrcD the railroad company and tho Betsenlrr
IRON Company UpOu this balance there IL n0LlunR al
arcd by the referee thu gfVund that tho contrae
With the Bessemer Iron Company was hold TO be void
Tb re WAS no authority for the Issue OF the bOhuB
NoTdscaI NJ Smith claimed $4,000 for which he f.
allowed So coo. These bonds were Issued 70 THOMAS
Clatk ir u nephew Of Smith, who was at the time "A
director OF the railroad company Tor advances noe ny
MN tClark) TO the company for $4,000.
Cie roe w. Ward, another president OI the rOah pro
duced bonds 70 the amount Of S2l'0OOy when no
claimed, but mons OF which were allowed. or these
honds no claimed $4,000 Tor services IN obtaining loans
Of money 10 the company Henry W. johnson claimed
at0 900 all az which allowed "a he purchased ma
6ond, from contractor TO whom he had pnl the fGli
nmOuut, National Bank OF BrOoklYn was al
iowrd $40 900 for IT ouey advanced on the bonds.
William H. Kirkland claimed $4,000 for bonds witch
were given 10 Linn III lieu Of $4,000 claimed for services
r ndprrd as president Of tile road These were dis
allowed by the re;er-e. Abraham ;. Jones presented
bnnds amounting TO $4,000 for which he had paid St2,
nr Isl p.r share-the par value being SlOOO-lter the
connav had been declared inBGlVCnt. Oihcr persons
| had Iurclsscd bonds at the Ruu,e rate
The referee found that the New-G0Tk, Northern ana
U1usstnnic Railroad Company was insOlvcnt and ui-
nhe to INV ts debts the 1sJ day of April, 1873 when
INC st coupon, the bonds became due, and has bcen
over since anu that the premises, up 10 the time OF ner
lr were wholly Insufficient 20 pay either tae principal
or interest OH The mortgage bonds.