The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-09-23
DIRECTING ". +. & N. sTOCKHOLDERs
Accuse New York Central OF n Dark and
Deep Plot to Get the Road.

Accuse New York Central or n Dark and
Deep Plot to Get the Road.
f. Ellery Anderson and Simon II. Stern. rep
| resentinG minority stockholders of the New
York and Northern Railroad Company. applied
to Justice Pratt in the Supreme Court in
brooklyn yesterday for leave to intervene in
the foreclosure suit begun by the Farmers
Loan and Trust Company. the trustees OF the
second m ortgage bonds OF the railroad which
Is for S3.2OO,0OO There was q default in in
terest year ago amounting to SG4.O 200. The
trust company waited the twelve months re-
auired by the terms OF the mortgage and then
chester county.
The application OF the minority stockholders
Is based on a tale Of deep-laid plot on the
part OF the New York Central Railroad. which
purchased last spring from Mr.. J.. Pierpont
Morgan majority of the stock and bonds OF
the Northern The plot was for the ruin
OF the Northern that the Central
might get possession Of the whole
road for a song. The allegation Is that
the Northern officials. working in the interest
OF the Central. managed the road in such a
manner that there was no money to pay the
interest on the bonds. Then. to make it GER
tain that no collision would appear. and
further that the road was really hard up for
A4o''S'' T-c.bOO was DOETOW6u from tUo Lincoln
National Bank on note. The loan it is as
serted was called the day after it was mad..
There was a default in the payment and judy
ment was entered. Mr. Anderson said last
night h.
80 lar as we can see. the net earnings OF the
road, exclusive OF the money spent for Inn
provements. have been sufficient to pay the
interest on the bonds. The Stockholders allege
that. instead OF applying the money to the
payment OF their interest. the officers spent it
VI Iinl tIn Nll.,tv INtI
road more valuable. were not necessary. and
we're were. therefore. not justified. The stock
ling. or leasing OF the Northern road by the
Contra! Is a violation Of he law relating to the
purchase las Of petng lines The law orbds
sucn purchasing or leasing without the con-
sent sent OF the Railroad Commissioners which in
'hs Mr. case sSs mas not been applied ior ,ou
Bank loan, said
The railroad borrowed the s25 900 from
the Lincoln Bank on no security except it's
note. 1t borrowed he money because it need-
%he Then Rot day later but quite
f"nd s3rld not pa" it. and judgment was OBJ
Regarding tho improvement story. railroad
men who were seen said that tho last report
OF the earnings OF the Northern rond. showing
aci e,fa Ol SarVVo IN three months WIS sui
The road never had paid. and tho best man
agement in the world could not have made it
fore inevitable. Justice Pratt has reserved
his decision on the storkholders' application.
should no grant the order the effect will be
that the stockholders will have a chance to
have the foreclosure case tried on its merits in
Westchester county.
=, committee consisting of Il. S. Hayes. G. G.
Haven; ana Charles 4. Barney reported on
Feb, ~ SD. plan for the reorganization OF
the New York ana Northern Company. in which
they said that tho company could not earn tho
interest on It's second mortgage bonds unless
large GNbenditures We're made to develop trait
tc. THIS plan failed OF tho requisite con
ssents g. make i operative. In March last
Mr. }. iicrpont Morgan bought II controlling
interest In the stock and bonds u
the COMPANY. acting. as he supposed on
tho authority of the Manhattan Halfway
directors. The directors Of that company re-
fused to assume the purchase. and Mr.. Morgan
then sold his interest to tho Now York Central
II was reported at the time that the price
named by Mr.. Morgan to tho Manhattan III
rectors WAS about SiUUOuOO.
Although the Treasurer OF the New York
Central Is Treasurer OF tho New York and
Northern, tho roads have not common op-rat-
ing officers. Cart, HAYES is still the President
anu ne appointed u. q i'Ryen; lr; act ne lgen-
signed that position.