New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-08-03
RAILROAD INTERESTS.
THE NEW HAVEN AND DERBY SUIT.

THE NEW HAVEN AND DERBY SUIT.
M. BosTwICK DENIES SOME rolNTED ALICIA
TONS.
The published accounts yesterday Of the suit against
W II. starbuck. .Ibez A. soswick. John H. Macsul"y
and the llonsafonic Railroad. Instituted
sN the N"w-linvcn and Derby Rail
road. for 10000 damages. brought out
emphatic statements Of denial from the DEFENDANTS
The papers I'm the virtually charged the defend
ants with wrongful conversion Of property 10 the
amount Of 100000 1t was alleged that coupons
representing s2O4. $50. belonging TO the Derby Road,
had been irnsirrred from IN" treasury Of the city
VI New-Haven to M-SSrs. starbuck BOStwck and
stevens. n, members OF the executive committee
Of the Derby Road. and had been appropriated BY
them without Consideration, Mr.. Macauley aferward
Succeeding Mr. Stevenson in the committee: that
The executive committee. under n power wrlngfuly
secured BY II, had ISSUED bonds mortgag. certih
Gates 10 the amount OF Si0s0Oo IN excess Of the
legal b0nde, Indebtedness Of the road that the
DEFENDANT, had transferred the r)od to the IIoS
when they themselves owned more than wothlrdS
Of the stock Il both corporations that the iIOuSatonc
agreed 10 pay by way Of rental the Interest on the
sisO.OOO. Amounting to s2s 900 year, and that
these payments had been taken by the defendants
aud applied 10 their own use.
Mr.. Bostvick Yesterday gave ont the following
statement:
About year. 1868 and 1870 determined effort
made by citizens OF NewIayen TO build road
Newliaven 10 western connection. under the OF
me- Ncw.H Haven and Derby Railroad The city OF New
Haven guaranteed payment principal
Interest on 1925 600 OF mortgage per
coupon bonds due In 1900. The OF the road
much greater than at hr> anticipated and II unable
interest s running expenses.
The OF this that the city Of NewIIaven paid
the coupons a. they mstirrd and held them a claim
loaned rood 10 addition
s75. 600 H. Gosh 10 keep It running. In addition 10 these
the city also the Of o large portion OF
the roads stock about onehan. Mr. starbuck bought
tom city Ncw.IIlven oil lis Derby stock and all
claims Derby mad for cash. and obligated him
''lf to it, passenger aud freight drpos west OF
Water and Commerce SIS. 10 avoid dangerous crossings
this thoroughflrc. lie also Obligated himself TO extend
road connection, oil o which he has done
oerced at large outlay u money
One Of the chief objects Of the city OF NewHayen as
he understood IT, In selling III claims and stock In the
Derby VA securing Of this western connection and
that part OF the agreement perhsp. the largest part
u the consideration the city And the city has been
y.rv l.rqsl benefited by connection. The purchase
money was paid Of the sale by tn" CIV TO MI
Starbuck but the city did not deliver all IL" Claims @ ue
extension Of road completed, Gep0t~ moN'd eN
There f., no truth In the statement that MrsS-
nostwlck Sta buck and Macauey appropriated Improperly
suv money Of New Haven and Derby Railroad TO Their
own uses, and Mr. Bo.twck a. libel Of the te''s
kind and further states tho. no bonds were Issued ha
vrr~ not authorized by the laws u Connecticut
In conversation Mr. Bostwfck said that IN" TX
ecuiivr Committee Ind been regularly appointed. rs
Is common With railroads bv the fun board OF nine
directors five Of whom Connecticut men.
81 do not think that IA member Of the tx
ccutlvc Committee" said Mr.. BoStvich. g am not
sure but | think that assertion In the paper j.
mistake. Mr.. Starbucl and Mr.. hacnuley were mem
ber- 81 H. bu, do not think | was
n you cannot state positively whether yon were
A member ~ the committee WIS asked. " how can
you make posiv" denial u the allegations mao" III
th, .uli ncain-i the members % that cOmnltt"'
Nothing was done except under IN" advc" OF
samuel T. baldwin. the counsel tr the committee
Nr H.stwieh replied. " | consulted with VII. HHh"'h
often and world have known whatever was done
The rond hnd "A right To is>u" c-OooUo Ia bonds
which uns one half Of Is cost of construction con
tinu.d Mr. Bo,iwick and it did -. tn" f'7oooo
referred 10 va, not In bonds at ALL but in c"rhcntrs
- tndrb'.dne-s l>-l,Si to cover ih" r2oA'' % 81
,o,ron, which lad been paid nnd held tI NE cry O'
~ Haven. the l,ar II s'Joro. male by tn' 'l'''
nd The accrued Interest The c-rtinrni"N IN cas-"
- non payment would attach to u" hr7i m"rtghsr
l..td, and nrr thus practically secured ~ th",h.
TIT. Interest 81 ~ 800 Is. Of courS". paiu 10 thr
l.lf.r. ~ the c"rtin'Ht'-. ~ III" interest on hN
lnd.li.-u-s~ would b". Originally these criHh'h'r,
.r. nil held by Mr.. >tarbu'k. Mr. Nh' su''N MI"
n.,-.lf bat | have sold all my holding