New-York tribune., 1884-01-02
IN 4 RECEIVERS HANDS.
TIE NEw-YoRK AND NEw-ENGLAND LINE.
A SENSATION rOR STOCK oPERAToRs-ONcE MORE
A BANKRUPT.
GBY TELEGRAPH To THE rRrBUNE.I

fBY TELEGRAPH To THE TRGBUNEl
BosToN Jan. 1.-The first day of the new
year promised to quiet I'm financial circles, as the
Stock Board was adjourned over Monday To Wcdncs
day but the announcement, this morning that the New
York and New England had passed into thc hands oil
receiver made quite a sensation on the street
The facts I'm the that when the new manage
ment came into possession OF the road they at once pro
cecded 10 ascertain s actual financial condition on DC
cember II. The result Of this examination was that
| floating Indebtedness Of Sl300OOO was FOUND
The annual report Of September 80 last contained
Vstatemcnt to the effect that there quick assets
available OF 81 sG3,3OO, with current liabilities Of ST.
557216 leaving assets in excess OF liabilities Of StO6-
Osj These assets, upon examination however dwindled
| away rapidly not available for the Immediate
debts With the above financial facts before them
and 100000 of the debt could be demanded al
any time, effort made to raise the sum Of 100000
from the friends OF the road, to tide 1t over
into 1884. Some made toward raising tins
sum, the payment upon which conditional upon the
total being subscribed for But when capitalists Ike
W. II. Vanderbilt who II 600 shares Of the capital
stock refused to subscribe dollar, it was realized that
the movement was failure.
THE NEW PRESIDENT BECOMES A RECEIVER.
With the immense floating debt OF the road, and the
probability that creditors would at once attach the prop
erty in this and other states they realized the actual
condition of the corporation, the directors were called
together last evening, and the placing OF the
road the hands OF receiver at decided upon;
and application to the United States Circuit Court
at Hartford. which accommodatingly was opened at
m this morning. areceivcrshp for the entire property of
the corporation was granted upon the claim that the road
had defauted upon the coupons in the first mortgage Of
$4,000 O00 due to-day. Charles p. Clark formerly gen
eal manager Of this road later the second vcepeSdeHt
of the New-York Ncw-aven and Hartford, and elected
president OF the New-England road few days ago. re-
signed his new Office ana was appointed receiver.
PLANS OF THE COUPON HOLDERS.
Although the company defaults upon itsintcrcst today
holders Of the coupons being paid their interest at the
Bank OF Onmerce by the trustees OF the mortgage That
the coupons being paid due to the fact that friends
of the road raised several hundred thousand dollars
and purchasing the coupons upon their own account
These coupons good against the property Of the rail-
road. and will have preference even the second
mortgage IN any ltigaOns. Their purchasers,
therefore, run little risk in buying them. or the second
mortgage bonds outstanding september 30, the Common
wealth OF Massachusetts owned $,7jOOOO or more than
onehalf; that il the road should by any possibility
come into the possession OF the second mortgage bond
holders the state would again have the controlling in
hucnce in the management OF the road as was the case
one proposition that has been under consideration by
the new managmcuts is that of getting leave from thG
LEGISLATURES the several states through winch the rotd
in order 10 pay OF the floating Indebtedness what viii
be done nov that receiver has been secured remains to
be seen.
MIR CLARKs AUTHORITY QUESTIONED
In the United states Circuit Court to-day bill OF COM
plant was filed 10y Robert r. Bishop counsel for Henry
A. Brassey, OF London, pctoning for him and other
holders Of second mortgage bonds Of the NewI'rk and
! New England Railroad who may hereafter join III
the petition the appointment OF arccciver The ground
OF the application that while the road has not de-
faultcd its second mortgage bonds the holders thereof
were Justified in taking this precautionary course This
position was rliculcd by Judge Nelson who quoted au
thorities in support Of his statement the OppoSi-
| tion made vigorous denial or the nght
right Of the second mort gage hOndoldcrs 10 have re-
| ceycr appointed until the road had actually falled
TO meet it, interest obligations and claimed tat me Ap
| noiutiug nf a receiver in NcW-GOrk and Connecticut
would not hold good IN Massachusetts,. THIS was simply
device on the part the directors OpuS the securities
OF the road i'm the market and give the road over 10
the control of the NewIork NcwIIaycn ana Hartford
COmpauv. The fact that meeting or the directors was
called al Hartford at n time when 1t was known that IT
was physically impossible for more than seven OF them to
be pcscnt and that out OF that number protested
against such action showed the dishonesty Of the pro
cecdugs After a hearing which lasted several hours
| Judge Nelson decided to take the case under adj
| yisrmcnt, as there room for suspicion that
the alleged plaintiff not the real petitioner, ana ta
his name being used cloak by the directors VINO
were tie real movers II claimed 10y the ObleclOrS tDa
md Sbuman appointed the receiver on cX pdrte state
nrnts without evidence and effort will be made at
once induce him resCluu his order IL can ne stated
hOwcycr. that the lawyers for the obiectors admit
pryatcly that Mr.. Cark's title as receiver II good III
Massachusetts, and their hope Is TO Induce Judge SAphh
| to resCiud his order.