The Providence news. (Providence [R.I.]) 1891-1906, 1892-11-02
NEW ENGLAND BONDS.
Light Thrown on the Affairs of the
New York and New England.
IN A COURT AT HARTFORD.
The Charge That The Construction Bc-
counts Are Improperly Infiated-Pres-
snt Status of Goidsmith's Fight Against
The Proposed Bond Issue.

HARTFORD, Nov. 2-1he motion 10 pro-
duce the books OF the New York and New
England Railroad Company and its pre-
decessors. the Providence, Hartford and
Fishkiil and Boston. Hartford and Erie
and their predecessors in the case of Gold
smith ct al against the New York and
New England Railroad Company ct al.
was argued before Judge Prentice in the
Superior Court yesterday. Simeon T..
Baldwin was present for the defendant
corporation. Messrs. Alling and Webb OF
Alling, Morehouse 81 Webb. for the
plaintiffs.
The plaintiff asserts that the defend
ants objections that the books are too
bulky TO be brought into court In Con-
necticut are necessary for the current
business, and are too valuable TO be taken
from Boston, are false, that no entry has
been made in the books for twenty years,
that they could easily be transported,
and that they are at present more valuable
to the plaintiff than TO the defendant.
Even Judge Prentice smiled at this.
Lawyer Webb, the plaintiffs counsel,
testified as Co the course OF the deposition
of Secretary Perkins of the road and the
incidental examination OF the books OF
the various roads concerned aud consoli-
dated in the present New England rail.
road.
ne WtuJ DtCk lulO lut
'40's, and Mr.. Webb's testimony showed
that the road has swallowed up and grown
out of anywhere from a half dozen to
twenty small roads, sections and divi-
sions franchises, and rights of way, the
books produced, with some exceptions,
struction accounts of all these smaller
roads. The examination also exhibits
the intention of the plaintiffs to go
straight TO the bottom of things
1t appeared that in the building OF the
Boston, Hartford and Erie. stock was
issued TO contractors at low rate. and
there were many charges to construction
of these and OF gratuities paid for en-
dorsng notes, one of $4,000 for raising
500 900, the whole sum of Unis sort of en-
tries footing up TO be S29, 600 900, leaving
about S5,0OOOOO expense for legitimate
construction. The same sort of thing
shows in the accounts of the PROVIDENCE,
Hartford and Fishkill.
So far as the examination has gone the
books show that up TO the time when the
New England began the work the con
structlon account, as Jumped " from the
books Of the various roads, foots up TO
abou $40. 900 900. UT this amount, the
plaintiff disputes, as improperly charged
10 construction, some SO 900, 900, leaving
the admitted cost of construction up TO
the beginning of the New England's
ownership, about $40, 900. The PRovI-
DENcE, Hartford anu FishkiIi road has an
apparent construction account OF about
g, 100000, the Boston, Hartford and Erie
about $4,000 The books OF the
former, Mr.. Webb said, seem to be the
simpler and more easily read.
The construction" and equipment"
accounts are kept together in the New
Eugland accounts, aud these accounts
aggregate about $l4,0O0,000, including
,out 100000 for equipment"
Mr.. Webb testified that at the hearing
before the comptroller the defendant pro-
duced two superintendeuts and a certif-
cate from tue officers of the road II ed
with the comptroller and an analysis of
the railroad commissioners reports, but
did not produce any books. This evidence
was produced in support of the plaiu-
tiff's claim that the road is relying on
personal opinions rather than upon re-
cords for the amounts of construction.
Arguments were heard and the court
reserved its decision.