New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-11-27
RUSSELL SAGE INDIGNANT.
A RIGOROUS REPLY TO GOV. ROBINSON.


HIS INTEREST N THE NEW YORK AND NEW
ENGLAND RAILROAD.
The recent sale of New-Yorll and New
England Railroad bonds held by the State of Massa-
chusetts Is likely TO DO contested either in the courts
the state Legislature. The Governor and Council
Jecteu the proposal OF Russell Sage aud Cyrus W. Field
VINO oHered 9ols for them, and OF tho Bos-
ton syndicate, headed by Francis +. Hirginson.
whose bid was SO. but Immediately afterward
authorized the sale OF the at 90 to the Higgnsou
syndicate on condition that should subscribe 70 a Ger.
tain amount OF the preferred stock the Tho
formal protest OF the NewYOrk bidders WAS sent to the
Governor before all the bonds delivered under tho
private contract On his return to NewYor after the
directors meeting Tuesday, Mr. Field sold his stock
and resigned his place in the board. william III.
Vanderbilt, who also large STOCKHOLDERS
and is represented in tho board by william s. Webb
soninaw has disposed OF his stock Russell SAGE has
not followed this example In reply to the statements
otGovernor Robinson, published yes serday. that the
bonds were not awarded TO the highest bidders
they were spectators who would more for their
own private enrichment than the advantage and Sc
curlty Of the State AMI her citizens" Mr. sage sai
al do not wish TO question the honesty OF Governor
Robinson but must believe this matter he has
been mised and misinformed by persons VIII had pc
cuniary interest I'm the SALE He charges with
tempting wreck the New.Englaud road through pos
session OF these bonds am the largest stockhoder in
tile company, and have been director for four years
hold more stock to-day than all the other directors put
together. / not in the habit OF wrecking
properties at any time and certainly when tho
lJrSest owner IL the Governor has doubts about
my support Of the New-England road. let him Re
celVer Clark who Knows nat have done everything in
my power To uphold aud strengthen him I'm his efforts TO
relieve tne company from It's embarrasSmcnts. sub
scriDed for $4,000 OF the preferred stock
yances made to the company. 1t has seemed TO mo
not unreasonable that the creditors should bear
part OF the risk and make from their
claims Their profits in trading with bankrupt road
creditors have refused TO take the preferred stock
ueMeht because they proessed that they could not
carry H. 6rt have agreed to acceptt II an Immediate
sale could be made. considerable number Of claims
have been settled IN this way, the creditors
selling the stock discount to little syndicates
ranged by Mr.. Clark Persons who would willingly
iLsist upon uncty ty-Hyc nuety-seyen per
count of the better business OF the company dOnt
know that the stock VIII not sell at ITO or l2O lhOpe
II WILL but am ~ favor or maintaining the receiver
ship until every claim has been discharged and the road
has proved its ability to take OF itself
As for the anxiety OF the Governor to protect his
floating debt of the company is held in Massachusetts,
ami although the bonds were awarded to Boston syn
dcate part Of them came 10 New-YOrk. Mr.. Higgins
provided literally think for his relatives and friends
mat 1t useless for us to make bid as We could
not get the bonds at any price Oar offer was fair one
and over II per cent higher than the Higgnson
bid and cent higher than the price at which they
sale made, and have since sold at lOi there
to have been nice profit In the transac-
Mr.. igginsou assumed the whole responsibility FOR IL,
and perhaps Il belongs to him. He said thar we had
invited bin 10 Join syndcaes. AMI there was
reason why he should admit Us to one OF his. am
directors. hut snail not sell my Interest Tor still Lave
strong hopes or the road"