The Portland daily press., 1884-01-03
The New York and New England
Railroad.

The prevailing state Of mind in Boston
regarding the move to put the New York
and New England railroad into the hands
Of receiver seems to be one of perplexity.
By some it is regarded as the best thing
possible under the circumstances, and it is
believed it will prevent waste of the security
Of the bondholders. By others it is looked
upon as a scheme by outside parties to get
possession of the road-the New York, New
Haven & Hartford road being mentioned as
the party most likely to be at the bottom of
such scheme il it exists. The secrecy Of
the directors meeting which decided to Pc
tition for receiver, and the hurry which
was manifest in applying to Judge Shipmsn
at midnight naturally enough have excited
suspicion. The directors, however, say
that haste and secrecy were necessary to
prevent the levying of attachments on the
property which would have greatly embar-
rassed the company and provoked much
litigation. Itseems that the January coupons
were not actually paid by the company, but
cashed by the d;rectt rs, who hold them
as claim against the company. The Bos-
ton Advertiser which probably represents
the opinion of conservative men in the mat
ter, says:
Although the facts have not sufficiently devel-
oped TO warrant final judgment in the matter, it
seems probable that the appointment of a receiver
to take possession Of the property of the New York
q New England Railroad Co. was wise and con-
servative step which viii protect the road from vex-
All ND nharr fha
Gus equities can be determined, and some plan de-
veloped for tho relief of the pressing necessities of
its current expenses and hoating debt. While it
may appear extension Of the doctrine of judicial
management of railroads. to appoint receiver up
en- the petition Of a holder of secured debt not
yet matured, as protection against possible at
sachments by unsecured creditors, yet there is no
more benehcent power vested in court Of equity
than that by which it defends the value and nteg-
Tity Of property subject to injury and dismember-
ment by multiplicity of suits. The action of
Judge Nelson in staying proceedings in this circuit
until full hearing can be had in the curt which
nrst took original jurisdiction in the matter is well
calculated to prevent any such disastrous conflict
OF jurisdiction has sometir es occurred in West
srn circuits At this critical time in the history OF
this enterprise irreparable injury would be done by
allowing it to be brought into the numberless tri-
bnnals IN whose varied Jurisdictions its property
lies.
In the Boston papers Of last evening C. a.
Vennor & Co., bankers, publish a card de-
nouneing the action of the directors in pro-
curing the receiyership, and characterizing
1t as a scheme to benefit the few at the ex-
pense of the many. In this card it is al
legged that the floating debt is now only ST.
100000 as compared with 81 100000 on the
first of October last, and that it is fully off
set by supplies and material on hand and
bills receivable. 1t is also claimed that the
gross and net earnings of the road we're new
or SO large as at present. Holders of securi-
ties are cautioned against sacrificing their
bonds, as the property is fully worth all its
mortgages, and there is no doubt in the
minds of Messrs. Vennor G. Co., of the abil
isy of the road to earn all its fixed charges,
The net earnings this year at the present
rate should exceed s1,1oo,Ooo, as against
half that sum last year. Stockholders whc