New-York tribune., 1884-01-14
THE NORTH RIVER COMPANY.
AsHBEL GREEN APPOINTED RECEIVER.


attorneys for the company. The application was
made to Chancellor RunyOn at Trenton, New
Jersey (the Construction Company having been
organized under tho laws of that Statej, the ap-
plicant being Mr. Larry, of Ward, Mackin & Co.,
of Newburg n. Y. This firm is one of the contract
ors of the company, its work having been to supply
the masonry and grading for the West Shore road
in one of the Western counties of the state. The
legal proceedings were of friendly character
designed to secure the equitable distribution of the
assets Of the North River Company. 1t was part
of general plan for the rehabilitation of the
finances of the West Shore Company. under which
a new mortgage of $25, ,000 600 has been created by
that corporation
The necessity of the action taken by the two COM
panes has been apparent for some time past. The
obstruction Company under its contract for the
building of the New-York, West Shore and Buffalo
road received $5O,OOO,O00 first mortgage per
cent bonds of the latter company. The proceeds of
these bonds have been spent and in addition the
$40 1000, 900 capital of the Construction Company.
Notwithstanding the expenditure OF these sums
the North River Company owes the contractors an
amount stated by the friends of the company to be
about $1,000 900. The West Shore road was
finished 10 Buffalo but there seventy-ye miles
of second track to be laid west of Syracuse and also
some other work to be finished 1t is said that the
laying of this second track is not necessary for the
present that the road is fully capable of handling
more than the amount of business that is expected
TO be offered to it in the first two years. The con-
tract between the two companies, however,
provided for the protection of the Construction
Company even if the original estimates of the cost
of the West Shore line should be exceeded. The
accounts between the two companies are not yet
entirely made up, but under their agreement the
West Shore company has transferred on account
part of the new issue of its bonds,
Rumors regarding the new issue of bonds have
been current for several days. 1t was learned
yesterday that at the meeting of the directors OF
the West Shore Company on Saturday an income
mortgage of 800. 900 900 was authorized, the bonds
to bear 3 per cent interest if earned, and to run
sixty years The partial settlement with the
Construction Company was made that day by the
transfer Of $lO,00D000 of the new income bonds.
The remainder of the issue will be held in the
treasury of the West Shore Company to be used for
future needs. 1t is understood that the COnstruc-
tion Company was granted extension of time
which will enable it to carry out its contract if
satisfactory termination of the recevershp can be
eventually secured. The assets Of the North River
Company include in addition to the Sl0,OOO,OOO
now income bonds majority of the capital stock
of the West Shore Company. This control
amounts to over $20.000000 stock. While assert
pg that they possess other assets the officers OF the
company decline to specify what they are.
TALK WITH GENERAL wINsLow.
General Edward L. Winsow, president of the
North River Construction Company, SAID last
evening in reference to the recervershlp: "Ihe
application and appointment were made in the
interests of the creditors and shareholders. l. no
sense were the proceedings hostile to the company,
and the appointment was assented to by it, The
tolya fart he
protection Of the courts to preserve and hold intact
the assets of the company. An important part of
these assets is the control Of the West Shore road
We could not afford to dssipate that. The
Construction Company has gone on and built the
West Shore road in very substantial manner both
rs regards the road bed and the equipment The
superiority of the property as u whole is very
generally recognized. Because of the substantial
aud elaborate character of the work and the pres
smre to finish it before the winter the original
estimates were exceeded. The cost was also IN
creased by the continuously bad weather last
winter spring and summer by the e1actlons OF
the State authorities as to the character OF the
work along the canals, which nclnded very ex-
pensve masonry, ana by tno increases cosC oi tne
the Construction Company was lett WIN an IN
debtedness which, until final settlement had been
made with the railway company ana the adoption
of IA final plan for providing money, required
SO OO0, 900 for the indebtedness now due. Inc
company had to choose one Of two alternatives
Elf her TO obtain the money AT u GunOuS IaIc OI
interest and great sacrifice of the assets and other
nropery (which would have entailed the loss of the
control of the road or to ask the protection OF the
courts for the preservation OF tho property tOr thc
benefit of the creditors and shareholders.
"The step which we have taken, continued
General WinslOw. 60 will be beneficial to the COM
many By il we gain time TO make settlements and
10 realize on our property and pay It's indebtedness
without preference. The company will be enabled
now to obtain the full value cf what it owns which
it cannot do in the present depressed condition OF
financial matters. This actioL In no way mperls
the West Shore road. 1t simply more tu!Iy
sruarates the action of the two companies without
AT all ieopardizing their concert of action. We
were offered plenty Of money but on terms too ex-
orbltant for us to accept. There Is comparatively
little work To be done on the West Shore road:
1t is that there are some seventy odd miles OF
second track to be laid at the western end OF the
line but with the extensive system of sldlngs along
the road tins will not be needed for some time. On
the single track west of Syracuse We can do four
times the amount of business now transacted over
the Pennsylvania Railroad between Phlladephla
finished is to complete the painting and do little
more work on the interior of some buildings
THE WEST SHORE NOT INJURED.
The bulk of the indebtedness of the North River
Company is stated to consist of notes given TO con-
tractors for work on the West Shore Railroad. only
n very small proportion Of it onsists of notes given
for borrowed money The point has been raised,
in the recent discussions of the financial condition
of the companies that the unpaid contractors held
builders lien for the work performed against the
West Shore road. This IS disputed by the friends
of the road. director of the company said last
evening: don't think there is any danger to fear
on this score In some of the States the laws are
peculiar on this point but here | think that the
only preference gwen is in the claims Tor the
wages of lHbOrers aga nst a railroad cther
persons were emphatic In declaring that any equity
under builders lien was certainly vitated III case
the contractor accepted the notes of the COnstruc-
tion Company. There have been rumors that some
of the unpaid contractors would bring SUITS against
the comnanv and attempt To attach its property
The North River officers disclaim all knowledge or
any threatened suits. director of the West Shore
said q do not understand that the receivershlp
was secured because any such action was menaclng
the construction company. Probably. however IN
view of the possibility of an attempted attachment
IL IL. LL.En Llrn n 70 "a ALIA