The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-04-18
zee n ,. Arp y ). p1ynDxxn



Bosros. April I'm. r. Goldsmith Co,
Wholesale LIQUOR dealers Of this city. descrio.
Ing themselves az holders OF New York and
New England Railroad stock. have sent an
open letter to the mpany andto the directors
ofthe company Individually notifying them that
the firm Will hold them personally responsible
| IL they pay the 3K per cent dividend on the
preferred stock voted to be paid on May 2. and
requesting them to rescind the vote. The let
ter says that. according to the last an.
nual report. the dividends paid on the
preferred stock In 1901 amounted to $4,000.
| while tho net earnings In 1901 applicable
to the payment OF dividends were only
| $S1.S26.34; that since Dec. 81, 1901. S2OO.OOO
Of additional preferred stock has been issued
and sold by the company las Goldsmith
d 90. are informed) In the open mar
ket. without public notice that 1t was new
and additional stock or that tho dividends
paid In 1901 on preferred stock had not been
earned lin 1901: that. as Goldsmith Co. are
informed. the company for the six months
ending April ! last has failed. by large
amount. to earn tho Ok por cent. dividend
whichit Is now DISPOSED to pay: that there
was net deficit in tho treasury on
Jan. OF $431. 0l373. that the deficit still OK.
lists. and that money raised for tho proposed
dividend would be charge upon tho princi-
pal. could be raised only by loan or by n fur
thor sale OF preferred stock and II paid other-
wise than from net earnings would be paid In
violation of law.
In second letter addressed to tho same
persons Goldsmith 4 Co. say on information
and belief that Directors ]. A.. Bostwick.
IL Prince boGsht tho stoef o the Prov
dence and Springfield and tho Woonsocket
oas T Suw Y"k and md new
while directors Of tho latter. ut n rental of all
expenses a, and siX PER cent year IND diyi,
apd their rSi,s stock I; had no market value
has, opera, cd ut ali times at a loss but never
ihoiess It. hns paid the rental specified n TIC
the sesc six Gf Ss a Tsas vdsPh
letter says that tho purpose of tho
four directors i, named vas to benefit them;
sorrespondns loss the New England nl suoh
Of trSst is naaI ss 3sef eSe
leases and ihayins Just heard Of them n. i:
Gel .it9 4 CT eau upon The directors to
profits made out Of the transactions Island and to
to Tie New 9orE and New WI England i thereby
b1 R ee VI whS lives Il Sew Yp
told him about them last night. ' '''''
The proceedings" no said. are evidently.
the New YORK and New Wet Eng land road, For
some time past certain people have been doing
Ing that the rond was fast going to pieces and
couldn't hold put much longer. This proceed
s shs ns had heard
Goldsmith Co. before. and consequently
could C., not say how much stock S they hold or
for the charge that unearned dividends. had
been authorized on the preferred stock. no
full deIiberation and investigation and was
passed by the Bonrd Of Directors on the last
oss at q H Asyan Sh o o Bens hns
wick said. to tho best s Of his knoWiedce ever
became member. Of the Board OF Direc-
SIS in the Profit and oss % Of
company. Since then the company has been
s sq%s
las boon reduced by about $40. 900. This
tf t sdrassf
,ii6:U00. and nominally :, is. paid on tho
fSs r9 5sd ns for n5 the s,IsS
'Tr. BostwieE admitted. but the wintor season
Whole year Twill probably amount to consid- (
rably over twice that amount. lust rs they
so ha do %.
red this year than ever befere Mr.. Bostwick
he Secdsd thst fna
vidends on the preferred stock are cumuln-
hs and h nof to 1 bsp paid next
User tic to authorize the dividend to be be
mid from the surplus Of earnings over cur
led on the next payment. Charles Parsons. :
he President OF the road. consulted Charles +,
Prince its counsel before ths step Xss
ersonaly owns none Of the preferred stock OF
In answer to the allegation of breach Of trust
sin Of the and Spring
9 and his ", associates had bought the y
Of G Ss road and Sednss az
ays; .' q fSoyidsnfs. WHO built it on on :
s% England ia' would easrsntoo 0 e Lease
for 8 Ier cent Of Its cost lost. The agreement q
bent eighteen n"nths nso Sas been eon
oiled BY the New York and New England. in \
Wth the ro,d NJ
ostyist sad ran over a P pSth That tSeN
nd \. F. road Ind previously claim, claimed as its
ahs i ths and e.
hen the " r,[oydsnee and Bostop road
TSs !2F ad' ana tho @o5 sst
buy 1T. and so MIR. BoStwtck and ~
Is associates bought a. controlling in 4
rest. paying from 70 to SO for n
'ntract to purchase was made par was offered IL
r the whole stock by others. The NY and NE "
tor careful elaboration. decided that 1t was | "
orth while, to tense tho road at q per cent, :,
One OF the committee OF directors that g,
commended the lease was Charles Harper. | i;
ice President and general manager OF the y
ew England. y
Mr. Bostwick says he feels assured that the y
ock could now be sold at par. He owns 4
UGH OF the stock himself. y