The Portland daily press., 1892-11-02
THE RAILROAD RIDDLE.
New York and New England Is Still
the Mystery.
THE BOSTON AND MAINE DOESN'T
WANT 1T.

Yesterday it Came in for Some Hard
Knocks in Court-It is Alleged that
Something Like Thirty Millions Has
Gone Into Construction Account
which Paid for Five Million Dollars
Worth of Road.
BosToN, November IA statement
comes from sources near to the manage
ment of the Boston e. Maine to the effect
that there is no truth whatever in the re-
ports emanating from speculativeIs
that the Boston & Maine railroad con-
templates close alliance with the New
York and New England railroad, either
by lease or guarantee of preferred stock
dividend and fixed charges; or by an ex-
change of stock, wherein the Boston d.
Maine would give one share of stock for
three shares of New York and New Eng
land. The Boston & Maine is in no way in
terested in the so called New York and
New England railroad deal. No nego-
tia.ions were ever entered into, or will
be with this end in view. The Boston %
Maine does not propose to enter into any
entangling alliance. What other corpor-
ations may want with the New England
property does not concern 1t. The Bos-
ton & Maine road simply wants all the
paying business it can get
RATHER QUEER CONSTRUCTION.
Into which the New York and New
England is Said to Have Put Millions.
HARTFORD, Conn, November dam
aging statements against the New York
and New England railroad were made be-
fore Judge Prentice today in the SUI
perior Court, affecting the roads right
to register 50, 600, 900 of a proposed issue
of $25, 00O, 900 of bonds. The Suits TO
restrain the road from issuing the ~ 600
900 bonds for registration. The hearing
today was on motion to compel the
road to produce it's books in court:
James FL. Webb of New Haven, Of cO1t4
sci for the plaintiffs, Nathan F. Sold
smith and Edward F. Knowlton Of sBost
ton, testified that he passed the greater
partof five weeks in taking the deposit
ton of Secretary Perkins. Mf..aWebb
said he had examined fourteen sets OF
books of various railroad organi cations
which at one time or another contri bhted
to the organization Of the New England
railroad. All the books showed mark of
recent examination in the pencil footings
made. The Boston, Hartford and Erie
books showed sundries charged to con-
struction. In the books of the Hartford,
Providence and Fishkill road, interest
on moneys borrowed. aggregating Sl27,-
600, was charged in the construction &C
count. Charges for the purchase of
franchises made up of stock issued, to
contractors were placed in the construc-
ton account and aggregated $4,000, 900.
The company had paid $4,000 to urn
of brokers for securing loan OF $3.50, 900
and charged the 100000 to the construc-
ton account. Legal expenses, were
placed in the same account. This kind
of construction account footed up about
$4,000, 900. He found only $4,000, 0OO0
expended in construction proper. Mr..
Perkins refused to produce the books OF
the Boston, Hartford and Erie in the
presence of an expert accountant. The
apparent construction account aggre.
gated 100000, with disputed amounts
Of S3,000,000. The road from Providence
to Waterbury appeared to have cost 81
900, 900, but the construction of thirty
miles more of road appeared as $50, 000,-
600. Mr.. Webb said the cost of the con-
struction of the road since 1878 aggregat-
ed about $14,O 900, 900, including an equip
ment account of $5,O00,0O0. Arguments
were made by counsel and Judge Prem
tice reserved his decision.