The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-06-18
NEWS OF THE RAILROADS.
informs TIoN FROM ALE QUARTERS
OF THE RAILROAD WORLD.

Mr.. Hostyysck and His Conscience-Discov-
cry OF the Housntonic's Financial Condi-
ito. Induces Hin TO seii-R. a. ID. Mntters.
A Wall street news agency printed yesterday
the following in reference to the recent deal
by which tho Housatonic system became iden-
tilted with that OF the New York. New Haven
and Hartford Railroad Company:
The sale Of the property was made by Mr..
Bostwick. who was the largest individual
etockholder He determined to sell after
close inyesti CATION OF the company's affairs.
The reports Of the company showed a pros
perous condition on tho surface. but one day
he was called on for some money to pay some
OF the company's debts. which was un-
usual. and excited his suspicion. He there-
upon made a close examination Of the out
standing debts and found the company had a
floating debt OF upward Of 100000 which
was being carried by individuals and banks.
Having relied only on tho official public re-
ports Of earnings and Indebtedness. as made
from time to time. which indicated a small
surplus at the end OF each year. he was under
the i'm preston that in time something might
be pnid on the stock. When he discovered
a floating debt OF this magnitude his thought
OF dlyidends vanished, and he at once opened
about one IN onth ago. The New Haven people
New Haven stock at price Tor the Housa-
Vote in the board tile Board refused to Guy the
land board would not aiow snf hns sM npf e
Sss ss I that Waited
%nt Nj and %sGn LED
proposition. hut, in view OF the statement
shown BY MT bost i you'd not accent the
accepted il at once for himself and, the other
sthock,hi9ldsrs: ana asrec that the control
Mr. Bostwick return ed to his associates i and
told them what he had done. They objected
to the course he had takon and would not sell
more Tor their stock in other Gunrters. Mr..
Bostwick being satisfied that il, was the best
ing willing that they should make a. loss on
his M to Gs them the 1rs
holdings were large this was about s,55: In
some other cases. whore stock had been
bought in the open market on information, re-
ceived from the companys reports. he paid as
high as $50 share.
MIR. Bostwick now tells his friends that an
HARTFORD. Conn. June l7-Papers have
been served on James L. HoWard g! this city
the New York andsNew England Railroad. in q
NV suit concerning the finances of this road.
for n perpetual injunction, restraining al!
officers and directors and others connected
With the road from issuing the proposed new
bonds at per cent. to the amount OF $4,000
OOO The application is for a permanent in
junction. but the Court is asked to issue a tenn
porary injunction until the case is hoard.
The plaintiffs are Nathaniel J.. Goldsmith Of
Boston ami Walter H. Keith OF WATERFOWL. who
are stock holders and who declare that the
road is already mortgagcd up to the limit Of
the Inv.
Mr.. Landers said that it was impossible to
make any definite statement as to tho action
OF tho rond in regard to this question OF bonds
or other rotated matters. The cHpture Of the
Housa'onic by the Consolidated had mixed UP
matters II good deal.