Morning journal and courier., 1885-11-26
THE NEW ENGLAND BONDS.

Vanderbilt And Field Sell Their Stock
 Hn The Road Governor Ro Johnson
 Makes a Sharp Reply To The SyndI-
 cate.
 NEW YORK, Nov. 25.-Simon Wormser, of
 the banking house of J. & s. Wormser, said
 af 6aas Ns1w ork 6s New England ralIroau
 bonds by the Governor and council of
 Massachusetts: ''In my thirty-fve years ex-
 perience in financirl dealings with State gov
 ernments, the federal government and corpora
 tions I have never heard of such a proceed
 ing as that on the part of the Governor and
 council of Massachusetts in first inviting bids
 on these bonds and then rejecting the highest
 bid and accepting bid originally 10 per
 cent and finally 51 per cent. lower than the
 bid they rejected. Hereafter no one not
 resident of Massachusetts can afford to enter
 into negotiations with the Governor and
 council of that State."
 William H. Vanderbilt and MT. Cyrus w.
 Field have sold all their New York 6 New
 England railroad common stock and Mir
 Field to-day resigned & director of the
 New York & New England railroad.
 Governor Robinson to-day made public lengthy answer to the protest of Brewster, Cobb and Estabrook in behalf of Cyrus w. Field, Russell Sage and other citizens of New York against the sale of the second mortgage bonds of the New York and New England railroad held by the commonwealth to a Bos- ton syndicate at 90 flat when the New York syndicate had offered over 95. He says: Proposals for the purchase were invited,
 the right being explicitly reserved, for reasons plainly stated, to reject any and all bids if the interests of the State should so require it in the judgment of the Governor and council. The Governor and council
 were acting for the protection of the people of the State and recognized no other obhga- tion except that of fair dealing." After re- viewing the extensive interests of the State in the road and in lands lying near it's ter minus he says: Therefore when the bids were opened the Governor and council looked at once behind them to the bidders and with the strictest scrutiny attempted to ascertain what could be reasonably expected from those contending for the purchase. They were convinced upon unquestionable testimony that Messrs. Field and Sage had openly advocated in the directors | meeting and elsewhere the purchase of the States bonds for the purpose of con- polling the unsecured creditors by threat ot foreclosure to accept low figure for their claim and thereby enable them, Messrs. Field and Sage, to make money; that they | had criticised the management of MT. Clark, in that it had shown too high degree of success and diminished the oppor- | tunities of freezing out the creditors; l that there was just one way to settle the thing and that was for the second mortgage bondholders to proceed to foreclose, wipe out l the stock and creditors and later have @ re- organization and then there would be an op- portunity of making some money. The State desired to receive for the bonds their | fair value, but she would surely and properly condemn the action of any of her officials who should knowingly connive at pecunia- l ry advantage to her treasury at the | price of the wreck and ruin of the stock | holders and auditors of the road. The sen- l timent is still jealousy maintained in Massa- l chusetts that those who stand as trustees for any corporation or for the public shall in all matters so entrusted to them, keep their hands pure from the taint of private greed 1 Knowing the facts the Governor and
 council were of one mind that they ! ought not to accept their bid or open further
 negotiations with them. Had there been no other alternative the bonds would have been
 kept unsold in the treasury. The purchas- 1 CTS have already performed all their stipula- | tions and further contribute to the capital of | the road larger sum in excess of that re l quired by the teSNs of their contract of l sale, thus enhancing considerably all the 1 property value of the road, it's l securities, stock and debts and guaranteeing | the permanent success of the whole under | taking. It may be that few persons will | express disappointment and vexatlon that your clients were unsuccessful Ill thelr avow- l ed desires, but the Governor and council are l po1Sudecu I1ft1 d fclJ mum A"A0Na would have had just cause for com
 plaint and despair and the commonwealth
 have been scandalized had such schemes | as Messrs Field and Sage had advocated l been permitted to go into operation The l whole transaction may be subjected to the
 most searching investigation and the net re-
 suit will not fail to demonstrate the wisdom | of the decision. AS your protest was gwen by you to the press prior to the time when 1t could be laid before the Governor and coun-
 cil, trust it will not be deemed discourte- l sy if this reply goes at once to the pubic to i satisfy the general desire for all the facts
 bearing upon the important questions in 1 volved."
 KeeIy,s Plans to He Examined. PHILADELPHIA, Nov. 25.-At 8 meeting of the directors of the Keely Motor association
 held last evening it was stated that the in ventor's discoveries would be submitted to
 committee composed of the following for ex-
 animation: General Russell Thayer, Suther- land Provost, Amazi Dodd, M Richards