New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-04-19
THAT NEW-ENGLAND DEFICIT.
IT ASTONISHED THE DIRECTORS.
MP. BoSrwICK SAYS THAT THE GENERAL MAN
AGER'S ACCOUNTS WERE IRREGULAR AND
THAT THERE WAS TOO MUCH

THAT THERE WAS TOO MUCH
"KoM.KoM on THE COAL.
II. F. Goldsmith g. Co.. wholesale liquor dealers OF
Boston. have to the officers of the Newfork ana
New. England Railroad Company protest against
the payment o. the IL per cent dividend on 'he
preferred stock declared payable on May q They
ask the directors 10 rescnd the dividend notice ana
resolution. and declare that they will hold the d.
rectors personally responsible They also ask that
proceedings be instituted to set aside the lease OF the
Providence and Springfield and the Woonsocket ana
Psscoag roads which were leased to the company by
Jabez A. Bostwick. b. F. Vaughan, and Charles A. and
Frederick II. Prince, members Of the directory
TIE inquest for the resembling OF the dividend
notice is based upon the allegations that the di'1
dends paid the preferred stock IN 1901 announced
to $4,000, while the net earnings applicable 10 their
payment amounted only to $51 .s26, that S2oO,oOo
OF additional preferred stock has been Issued by the
company since December 81. 1891. and 'oh In the
open market; that there net deficit Of s13l.9l3
In the treasury January l. and that money for the
proposed dividend could be raised only by loan OF
by further sale Of preferred stock. The objections
the leases OF the two roads ba'ed on the state
ment that the roads had been leased 20 the company
by the four directors named. nj rental OF all eA-
penses and SIX per cent q year and DIVIDENDS OIL
the stock, although the two roads had never carmel
expenses. and had been opei1ted by tile Nc"-io'~
and New England at q lOse.
Mr. Bostwick aid yesterday that he had never
heard OF Goldsmith 81 Co. before. since tho receip'
OF the letter from them. he had learned mat they
owned atout sixty shares OF New England stock He
looked on the matter malicious attempt 10 hIure
tho pronertv The question Of paying dividends
yas determined after n most thorough investigation
he sald md vas settled with only one dissenting
voice that OF Alexander f. orr. In 1887 there was
deficiency Of about S735 900 I'm the commny's proh'
and loss account but this had been reduced since
then by about 100000 The dividend bad not oeeh
earned In the precise period for when tley were
paid but as they cumulative 1t was u'ouen.
best to authorize their payment from the surplus Vi
earnings over expenses since 1881 Inc ah"'No''
had been assured by counsel that tbs acton was
entirely legal.
Mr. BostwIck was president Of New-fork and New
England from 1857. when he succeeded Charles r.
Clark until February OF this year during ele
greater part Of lsgI he In Europe for his heal'
His story of what took place In his absence si'ee
peculiar and Interesting explanation Of the dehct OF
Al 600 which the company's books showed for that
year. lie said
"A monthly statement Of profit and loss was made
nm hy Charles Howard, Of Boston. who was vice
president and general manager These s'a'eme""'
when submitted to tie directors, showed monlh u!
month a surplus. which by November 1891. amounted
Ia about $4,000 for the year. Tie annual stemeuV
ln December however astounded the Board by show
"A
there was no explanation. subsequent examination
., r,e hooks by the auditor W. II. Dudley aud Charles
Parsons ir who is now vice president OF the com
many showed that the monthly reports made oy how
ard had been Irregular large expenditures NOT h"'"s
been charged. An apparent surplus was u'us 'h"""'
seemingly ony for the object OF making COCO SHOW
Ing for Mr. Towards management He is no longer
con ~ ctcd with the company, and has not been "ee"
about the ONCE since the election Ia March
Had the monthly reports not been so made az 70
HIND tbc directors and officers, large savings coum
and would have been effected. For Instance We haNe
,ound ont that Howard entirely unknown to the com
panv had contracted with Boston hrm 10 nave "i'
the coal used hy the company sprinkled with S3lie
n,tent stuif called 'komkom, whch was supposed To
p,ar,s If In some way The 'kom kon' cost cent?
Gallon and It took hrce gaos 10 TO s aR, on syers ton
Of coal fDr staff that Wa worthless rW .i' 40 zoo
alone Howard spent between Nv the New York
and Ncw England rued A.. ,,,. s,ou.s that
An inspection OF me Hoa n ~ ssult.s in the reec
don Of several thousand tons that were ready ior u
livery ls the company "Mad T that p Se cost q mel had
bcen ~ cents per train mile, wherraS tne aversss '
about my roads wn' only 90 cents SEW
had a hard time OF H. - r..,oh.d md
Then. TOO the train ,cryice v9s ws. rem.isG
with great trouble when change ~ ,nv ver feat
t 's.s ,rcTcr fo- Which Mr. Howard general
nanor"r wa. directly responsible Mr.. Barton who
Is nov superintendent says 'oa 10 sA asDeses
Al In reri to tho allegation Of breach Of trust IN ne
leasing Of the proydrnc g. "P sasTcK saiG that those
nrrprrI., afforded needed conncctons ana Werr ga
ceer for he New England out u'a rb ,se SrS York
po % and Boston was to get the Proy
denc. and springfield line. and y necsme sSScco2
Tor the New odd was pSnckasod by some OF the dire
tor and leased to the company undcr rs '''o''''
tsrms as could havesbee expected