The evening world., 1893-12-28
CRIES FRAUD.
Afidavits Declare that New Eng
land Books Were Doctored.
Charges Of MIsmanagement and
ReckIessness Are Freely laade.
Mcleod Scores a Victory by Secur-
ing the Lease.

The petition and afidavits upon which
Judge Wallace appointed Thomas C.
Plat as receiver of the New England
Company, together with other papers
in the case, were fled this afternoon in
the office Of John A. Shields, Clerk of
the United States Circuit Court.
The documents disclose some startling
facts in connection with the past manage
ment of the New York and New England
Railroad Company, and serious charges
Of fraudulent misrepresentation. falsify-
ing OF accounts and generally ~recless
management of the property are made
the basis OF the application for the re-
ceivership.
The three affidavits by Messrs. Plat,
Schley and Prince. which were drawn UP
at the Fifth Avenue Hotel on Tuesday
night, are very brief.
They all aver that the New York and
New England is in a hopelessly insolvent
condition. n that they are Interested
in the Company as shareholders or
~bondholders.
Mr.. Plat states that the United States
Express Company owns 5000 shares of
holds 1900 shares, and Frederick II.
Prince owns slSO,OO6 worth OF bonds and
800 shares Of the preferred stock.
of The the o rssaiv OF t ar s iS"gs f' nss the hs % nona
qualify within five days from the date
or his appointment.
The petition, as already stated, IL
made In the name of Theodore T.. Wood,
Secretary of the United States Express
Company. 1t is a lengthy document OF
thirty typewriter, pages; in which, after
SETTING forth Q detailed description of
the nrnnprty pf tlp Npu. Nr.lf and N,u,
England Railroad Company, reference is
made to the last report made to the
M~nssachusetts Railroad Commissioners
rent liabilities amount to $685., 9i7.$S, Sth
ava'lcbla assets OF only 81. $50, ilI.@s to
meet these. The balance CT the net float
inG debt. Including interest and rentals
accrued. is therefore placed at $685.. $50. 10.
Mr., Wood alleges upon information
End belief that this statement does not
set forth the real financial condition of
the COMPANY at that time: that many
OF he tens Included as available as
sets were practically WORTHLESS , and that
Tee actual deficiency was much larger
In 3 wori. t is declared that it
ssiml99Gpnnted a. that time to more than
the wear 1892, which was submitted at
the annual meeting OF stockholders last
March, showed a net floating debt of
Nhro'c l''oO' ihlltdllllR una Turing the nine
months to Sept. 80, 1893, the debt had
been increased more thar $3.50, 900.
He continues that the reports show
that the road has been operated at a
loss for three years past, and hat this
loss has shown a steady increase zach
year.
1t Is also charged in the complaint
that the statement of the alleged sur
plus of earnings was false, the accounts
having. been deliberately falsined by
fraudulently reducing the amount due
to connecting roads; This is IN reply, to
the year 1891, it earned ssi. sci al, which
was applied to the payment of dividends
In Its preferred. stock.
management to have been spent for i'm
proponents upon the property Is declared
TO nave been used In operating the road,
and that the books were doctored 80 as
to deceive the stockholders and the Rail-
road Commissioners, to whom the re-
ports were made.
1t is further charged that the manage
IN me the mas ese Of k Es,I'iy Of he sr roadb msF and
other property of the Company in re-
pair. At the same time it was paying
large dividends on its preferred stock
which ad not been earned.
Several instances where the manage
ment had violated its traffic agreements
with other roads are cited, az show
fairs OF the Company were conducted
1t Is due to Mr.. Mcleod. however, to say
that these instances OF alleged misman-
agcment occurred before he became
President of the Company.
At the present time 1t Is stated that
many creditors are pressing the Com
pany Tor payment, attachments are i'm
pending. m large mounts OF money
will soon fall due. The cash on hand il
less than 5000 900. The appointment OF a
receiver Is asked to prevent the disinte-
grafton OF the Company, and to protect
the interests of the stockholders and
bondholders
The adjourned meeting OF the New
England stockholders to vote on the
lease Of the New York, New England
and Northern Railroad was held this
afternoon AT Mr.. McLeod's Office In the
Equitable Building.
When the polls were closed II was an
nouRCed that 1884, 600 shares had been voted
in favor OF the close. which was 5000
more than was necessary TO secure its
ratification. This Is a mall victory for
Mr.. Mcleod. as an effort was made by
the opposing faction TO have the lease re
jected. Mr.. Mcleod says that Receiver
Plat will nave nothing to say about this
lease, as II was executed before his ap-