New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-07-27
NEW W-ENGLANU'S BONDS.
STOCKHOLDERS OPPOSING THE NEW ISSUE.
THE STRUGGLE WITH THE MANAGEMENT BEGUN

LITE WITH THE MANAOEMt-NI 6UN
IMPORTANCE OF THE CASE
Ncw-IIaven July (spcciaD.-The Now York
and New Englard Railroad Company made an
attempt before Controller Staub at Hartford
this afternoon to have e. 100000 OF their new issue OF
bonded Indebtedness registered. Tile application OF
tho railroads attorneys objected to in the interests
Of body Of the stockholders Of the company, who have
started to ght the proposed plan to Increase the
Indebtedness Of the corporation. The hearing was
there ofoIe the preliminary slrmish between the man
agement and the individual stockholders OF the road
From the facts brought forward to-day, tls evident
that the entire future OF the road is at stake. On the
hand the management is determined to raise 80,
100000 to be used on the road, by Issuing bonds
TO that amount ut per cent due in lfty years. ON
the other IS a BODY OF the minority stockholders who
determined to prevent the further bonding Of the
railroad and who intend If successful In the fight be
fore the Controller 10 press the management to an
accounting Of the stock construction account and
bonded Indebtedness. Dwight Loomis, ex judge Of he
nup?cme Court ID the State, was rs counsel for the
Controller Professor Baldwin app,ard for the man
aecnlent and Mr. Webb for the minority stockholders.
When Mr. Webb arose to address the controller, Mr..
Baldwin demandcd that he state for whom he ap-
pcarcd. Mr.. Webb replied that he represented Ed
ward +. Knowlton. OF New-York. who holds $4,000
Of the bonds and y. F. Goldsmi d Co., Of BoSton,
who 1000 shares OF common stock
Under the laws OF Connecticut, no TllIOau COhptlly
IS allowed to issue bonds have other Indebtedness
for more than One-ha Of the cost Of construction OF
the road. II IS here that the present fight comes.
That the railrond management has presented within
SIX months least three different certificates 0 con
sructon sworn 10 by the officers Of the company, was
brought forward by the counsel for the minority
holders. 1t was stated that for the last five years
the company has filed certificate of construction to
the amount OF slightly over $3f 100000. on March
20 OF this year, sworn certificate was hled for
j2,OO0,OOO
The last sworn certificate was made on July 20
and showed q construction account OF Sl2Oo'''p Il
drop of S,OUoo.OOO from the sworn cer,lhcate gade
four months before, but still tO,VJO,OOO more ular
the amount which the Controller certified 10 AT tha'
time. The Increase - the construction account /
absolutely necessary II the company i 10 secure ui'
eg1,trp;ior. 80 ita ,3aIro 900 issue a., bonds
The mana cement assert that for the pnrpoos OF te
u SI675OOOO Willie the ollcctiVns place the amount
Of Indebtedness at S2l 75OOoL
Mr. Webb quoted extensively from various sources
to show that the stock had brought only ltO
80 to AZ I'm The market and was only worth 80 "h''N
n the claims Of the gem were true the stock
would be worth 100 cents on dollar. Again uie
road had been ecl ioind by the MASSACHUSETTS, courts
f~Dm paving any dvidelds OIL the preferred st0ck ana
n WAS a matter Of knowledge among those III pval,
don 70 know that tlrc Wid md been run al "sS VI
about 400 900 during the last three years a.,
Professor Baldwin replied that the earnings OF is
company had been applied 10 double TRACKING hc I""'
and making improvements on the terminal iacihu's.
d. Barton General superintendent OF the roah
!" b,iId the road between Sio 700 900 and 100000
900 and that it conld be constructed now Tor 80 OF
Controller 6taub reserved his decision.