The Newtown bee. (Newtown, Conn.) 1877-current, 1891-01-09

~ UuJ AA6 g COuuIOiliHS SMART, W CllcCL-
ally stop all proceedings in this line.
Alex Mcneil had been and was then sup
posed to be working for the interests of
the syndicate, on whose road he was SUI
perintcndent. The Sistare failure had
made it impossible to proceed with the
construction of the lines intended and
the owners of the Ridgefield and Port
chester refusing to grant suitable ex-
tension of time in which to make further
arrangements, this project was dropped.
The idea of road from Hawleyville to
Westport and Saugatuck had long since
been abandoned. Afterward, however,
the directors made a contract with J..
Dwight Ripley (well known here as a
contractor who built the New England
road), for the construction of the pro-
posed extension of the Shepaug to Ridge
field, where the intention was to connect
with the Croton Valley railroad, a new
line to be built from the State line at
Ridgefeld to the Hudson river near Ha-
verstraw, whereby connection could be
made with the New York City and North
ern, the Harlem, the New York Central
and Hudson River railroad and, by way
of ferry across the Hudson, with the
West Shore line and railroad running
to Newark, N. J. At this point, Bost-
wick, Starbuck and Macauley brought
two suits against Chapman and the She
paug road, one for setting aside the trust
agreement made by Chapman and his as
sociates with the Mercantile trust COM
pany of New York, the other for an in
junction permanently restraining the
Shepaug from carrying out the terms of
the contract with Ripley. These suits
are now pending, but it is probable that
decision will be reached in a month or
two. Both suits will be tried at once,
but the entire proceedings really hinge
on the claim that the trust agreement
ought to be set aside. Should this be
be sustained, it would affect a majority
of the railroads hereabouts; for nearly
every railroad reorganization made with
in the past 10 years has in some form a
system of trust or pooling. Pending the
decision, no election of officers can be
held by the Shepaug stockholders and
Chapman remains in power. Suits have
also been brought in New York against
Bostwick, Starbuck and Macauley, to
set aside the sales of Shepaug stock, in
the form of trust certificates of the Mer-
camille trust company. Notices having
been served that these could neither be
dealt in nor disposed of, the Chapman
party claims that the control of the She
paug, now in the hands of the New Eng
land, is Illegally held and will in due
time be recovered. The suits are brought
in the names of NJ. w. Robinson and
two of Chapman's syndicate and will
probably be tried soon. The resignation
of Superintendent Mcneil of the She
paug, it is understood, was brought
about by the persistent refusal of the
committee, one of whom was
Mcneil, to audit the bills of counsel en-
ployed to fight the New England syndi-
cate; Treasurer Colt was also an ardent
Mcneil man. At last, becoming tired
with dallying, the directors informed Mr.
Mcneil that his resignation would be
accepted with thanks; failing to resign,
he would be voted out. He chose to re-
sign and the chief clerk is now running
the road. This resignation was dwelt
upon at some length in the testimony,
Mcneil claiming that he had been forced
out; but, on cross examination, stated
that he had contemplated resigning be-
fore this occurred. His conduct in the
case has been severely criticized by his
opponents, although he claims that he
was acting for the directors and the best
of the road. He has, it is un.
lerstood, accepted flattering offer from
4 western road and will occupy posi-
Jon of responsibility and trust. Another
side issue which has attracted attention
IS the attachment placed upon the funds
If the road by the Scranton steel compa-
ny. 1t appears that Chapman had order
ID 200 tons of steel rails from this COM
oany to relay the road. Finding that
LOO tons would be sufficient for the pres
INT and that various expenses had reduc-
I'd the funds of the road, he notified the
steel company to send 100 tons then and
loo tons later, when he could better re-
,eive them. Mr. Mcneil, however, gave
he steel company private instructions to
be careful of their interests, as he was
no longer in position to protect them.
An attachment for $4,000, the price of 200
tons, was at once forthcoming, breach of
cause of but temporary embarras sment,
however and the attachment was to have
been raised, this week. The road already
has about $4,000 worth of old iron, which
will nearly pay for the new steel rails.
management cannot be said
10 be disastrous to the road, when, in the
face Of additions and improvements, the
net earnings show an increase of $1,000.
The matter is being fought stubbornly
1t every point, eminent legal talent being
retained by both parties. Counsel for
Bostwick and Macauley in
,lude Prof Simeon E. Baldwin of New
Haven, who is also counsel for the Hous-
atomic road and Mr. Beaman Of the law
irm of Evarts, Choate, Southmayd &
Seaman, New York. Mr. Chapman is
represented by ex-Judge Henry Stod-
lard Of New Haven, G. C. Higgins of
few York and Judge w. B. Glover of
Clement A. Seward of New
FORK is also retained on the case. The
utcome Of the whole litigation will be
7atched with interest, for it involves
OF only the ownership of the Shepaug,
ut the question as to what system of