New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-06-10
RECEIVERS OF WEST SHORE.
ACTIONS IN NETWORK AND NEw-JERsEY.
Ex-JUDGE HORACE RUSSELL AND THEODORE hoUS-
TON APp0INTED.

RAILWAY has been placed In tho hands OF e1Juuso
Horace Russell and Theodore Houston, Is receVoi',
on the application OF the United states iIu''
Company which is the trustee OF us hrse
mortgage bonds The order was granted III 'ho
erst place on SATURDAY. night by Judge Charles r. bro""
NJ the Supreme Court or this state sitting ut SeWDns
but no confirmation of the fact was given at inc oo "
The com pany until yesterday afternoon ater s"r
order had been granted by Judge Nixon OF the Onted
states Court at Trenton, NJ who appointed the same
persons receivers tho property Of tho company wthn
the limits OF that The officers OF the company then
is,ned statement about the recevershp After recit-
in the facts Of the appointments the official statement
continues:
The proceeding under which these appointments have
been made orecOse the mortgage, but persons
who interested in the property state that some plan
OF expected to be agreed upon hereafter
Should this be done the foreclosure and sale Hereunder
will be necessary. The gentlemen appointed are well
known to the public. Judge Russell was formerly Jus:
tice OF the Superior Court In this city HIS appoint-
meni as receiver was made in interest Of the first
mortgage bOndhOders, all OF whom who were consulted
favored it. He is q sOn-in-aw OF Judge Hilton olI'
Theodore Houston has been connected with the New
York West Shore and Buffalo Railway for several years,
and Is vccpresident Of the company. He IL well KNOWN
rs an expert accountant and mas mad extensive rail-
road experience lie IS native OF Orange County IN ths
state and is man OF high character and acknowledged
In January last, the North River Continuation Com
ro1G' Went vent" into ito" the hands of recover,
with debt duo to contractors and others OF about
S5O0OO00. 1t had substantially completed tne lagay
and unlike many construction companies, laOored 10
complete road a. perfect in all its details as the most
approved methods OF construction couId acco,hpAs
one that could he operated at the least possible per
centage Of expense The character OF the railway PROOF
of how thoroughly this purpose was carried out a.,
The railway company opened for business through lts
entire line on the first day OF January last II had year
taxes to paw considerable expenditures TO make ia the
wav OF supplying additional equipment completing some
OIL stations and providing many conYehlences or a
yanageousy operating its trains The money necessary
these purposes had to be supplied from ltS uSiy re-
ceipts These though very uluS[ .o
circumstances have been Inadequate Ior hs "a
sons: II took time 10 perfect eOnhec0hs anu tIac
arrangements with the West to secure r sare Of ns s
through business The first SIX mon ms OF the year are
always the period OF least revenue dsa yyn w
has reduced the local freight rates at competing points
Aangemenfs were made in the month of May by which
il was believed company would raise sufficient money
upon second mortgage bond to meet al, al
jority in interest OF first mortgage bondhoders
would un their coupons for three years me Hoders OF
oppoation TO the funding has developed The rooent
financial disturbances and the sus brought by creditors
and stockholders OF tho construction company have maze
The raising OF money upon Junior securities present i'm
possible unless az sacrifice to which the company ought
to submit II has therefore been deemed Tor the pest
Interests of ali partiesn ownership place the properties
of the "ompany i'm the hands OF receivers and under the
protection of the conr and await revival OF tame
restoration and recovery from the present Imam
cal depression This will give time for perfectns under
favorable condition Of the narkesa plan Tor pro
yling means for such moneys as the company may re-
quire.
THE ACTION A FRIENDLY ONE.
The action for the appointment OF receivers is
friendly one the trustee OF the rst mortgage
bonds resored to 1t only after the had aban
doued their plan relief by means Of the issue Of new
bonds It was with the consent of all the prominent
persons in interest it Is understood. that the Uni ted
states Trust Company finally made the application
The road ought to have been placed in the hands Of
receiver firm friend Of tho company said yesterday
at the time when the North River Construction Com
pany the protection of the courts The managers
see their mistake but they hoped to carry ont their
scheme for the relief Of the company. doubted It's suc
cess from the first hut they that they could
float the new bonds and perhaps they would have done
had not been Tor the recent financial disturbance
The end then inevitable and the only question was
one IS To the proper time for action
The announcements OF the receiyership was not made
until after the close Of business at the stock Exchange
pcctcd In Wall street for some time The bonds not
unusually active, and although they closed at ne loaet
point they have touched they were only le per cehi
lower than on saturday
TIE COMPANY AND PLANS POR IT'S RELIEF
Tue West Shore Company was organized IN February
1850 build line OF railroad from this city to Buffalo
on the west side OF Hudson River. IL to have
branch to Albany, and Cornwall to connect with
the Ncw-York Ontario and Western The road between
Wcehawken and Cornwall was built by the latter con-
pauy under contract and that from Cornwall to Buffalo
by tlo North River Construction Company. which
controlled by the friends Of the West Shore Company
The share capital OF the West Shoeis $40O00000 and
the first mortgage bonds amount to 500 100000. The
company the first OF January, bu; still had large
claim under its contract which guaranteed It tie cost OF
cunstru tJn. The line completed tO Buffalo, but
west of Syracuse il hardly than single track
road. Its business has been hampcIed by this inc0m
pete condition and by its lack OF equipment After the
North River Construction Company was placed III The
hands OF receiver January - plan FOR the relief
Of the West shore was proposed which conCsnphted me
Issue Of $25,O0OO0O second mortgage bonds. large
part them be used 10 discharge the debt 10 the
construction company. but OF them were 70 be
placed to raise money for the completion OF the Ioad,and
the purchase of newcquipment. The company has met
with great difficulty in the prosecution of this scheme,
which involved the funding Of three years coupons on
the first mortgage bonds OF the 10000, 600 only
81 900 had consented 10 the funding scheme when
the of the semi annua. interest payments made
the recevership necessary.
General Winslow yice-president OF the construction
company who has been the leading promoter Of the West
Shore Railroad said yesterday The that the ap
pcaOn made at Newburg was simply that that
was nearest court to NeYYOrk In whose jurisdiction
the company actually property. We
tremey anxious to keep the action secret until the re
ccyers had entered legal possession OF the road"
LOUISVILLE AND NASHVILLE AFFAIRS.