The Newtown bee. (Newtown, Conn.) 1877-current, 1891-01-09
EXTENSIONS DELAYED.
SUIT FOR 200 TONS OF RAILS.
IS 1T CONSOLIDATED POWDER?
The Shepaug Fight.

When Judge Robinson of the Superior
court denied the application for areceiv-
er for the Shepaug railroad, he gave the
Shepaug owners, represented by Presi-
dent George ID. Chapman and his associ-
ates, the first decided victory in series
of legal battles which vitality affect the
prosperity and ownership Of the road.
The application was brought by w. II.
Starbuck and J. ii. Macauley, who, claim
ing to represent a majority of the stock
holders, asked that a receiver be appoint
ed in order to take the control of the road
and its affairs from the hands of Presi-
dent Chapman. He, however. maintains
that their claim is unfounded, inasmuch
as the stock held by Starbuck, Bostwick
and Macauley, the New England IA ilroad
syndicate, was Illegally obtained and
really belongs to him. He also asserts
that the road is perfectly solvent and
cites the statement that the net earnings
of the road are over $1,000 greater than a
year ago, Notwithstanding improvements
in roadbed and equipment. The history
of this fight extends back couple Of
years. Both the president, George d.
Chapman, and Harold Clemens, the man
whose failure caused most of the difficult
ties, are residents of Fairfield. The She
paug, or, as it is now known, the She
paug, Litchfieid and Northern railroad,
was built largely through the efforts and
by the capital of the McNeils of Litch-
field, who held a large majority of the
$4,000 shares of capital stock, issued at
par value of $50 each to pay for build
ing and equipping the road. In due time,
those in charge of the Mcneil estate de-
cided to dispose Of nearly all the stock
and the controlling interest in the road
was offered to George d. Chapman. Mr.
Chapman and number of friends form
Neil estate and others about 5000 shares,
paying not far from 80 per cent of the
par value for the stock. This was in
September, 1888. At the annual meeting
in November, Mr. Chapman was elected
president, position he still holds, though
the election Of 1890 has not yet been held
When retiring from the management of
the road, Edwin Mcneil wrote to Mr.
Chapman, speaking in terms of gratifica-
ton Of the honorable business methods
used by him during the purchase Of the
road and expressing great satisfaction
with the arrangement whereby the Nc
Neil estate, retaining small interest on
~ In the road, should have a seat in the
board Of directors and Alex Mcneil plac-
ed in charge of the road as superintend-
ent. 1t was the intention of the syndi-
cate to extend the Shepaug from Haw-
leyville to Ridgefleld and connect with
!. road to be built from Ridgefeld to Port
chester, N. Y. Contracts had been exc
Odd for both the RidgefieId branch ana
portcbester road. However, at the
the ,nesyndicate bought the Mcneil
t"'s ,aving in view this extension OF
s.osepaug, it placed all the stock in
tnands Of the Mercantile trust compa-
pf New York, an organization formed
the purpose, under a trust agreement.
/he Mercantile trust company was to
hold this stock for five years, vote upon
it In accordance with the directions Of a
committee then named, issue for each
share OF stock trust certificate contain
ing the conditions under which the stock |
was held and certificates issued. All |
this was done and the property was held
by Harold Clemens of the firm of George |
K. Sistare's Sons, for the use Of the syn
dictate. Sistare's Sons had been selected
a. the financial agents for the building