Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1893-12-28

IN favor OF Gu6 lease, WHICH SHOWS tQ8t
majority of the stock is in my hands"
ITS THIRD REcElvERsH1P-A SHORT BUT
DoLEFUL STORY.
NEW YORK, Dec. 27.-This is practically
the third receivership for the New York
and New England property. Under this
name, the already insolvent Boston, Hart
ford and Erie railroad was reorganized in
1878. On January 1, 1884, the new COM
psny became bankrupt and so remained for
two years. Its history during this time has
been of q remarkable character. Only 1873
900 common shares of capital stock are
outstanding, and very large part of this
has always been held in the safes of specu
lative stock brokers in New York and Bos-
ton. This has made the shares always q
favorite with spectators. For many
years 1t has been recognized that
the stock was worthless, except for
purposes of control, but belief has
always been held by spectators that
at some price the company's great COM
petitor on Boston traffic, the New York,
New Haven and Hartford, would buy up
the New England shares for control. This,
and the frequent contests for control by
inside parties, who were always forced to
resort to the stock market to get their vot-
ing majority, has caused many wild auctu-
atoms in the price. The highest price at
which the stock has ever sold was 68f,
nine months after its two year receiver
ship. But In March of last year, when
Mr. Charles Parsons was buying for con-
troll, the price reached SO, the highest in
five years.
Mr.. Parsons bought control and was
elected president in March, 1892, succeed
ing the late ]. A. Bostwick, who had long
represented the o-cslled STANDARD Oil in
terest" in the stock. Mr.. Parsons believed
that he could rehabilitate the system and
either run 1t at a profit or sell at high
price, as he had already sold his Rome,
Wstertown and Ogdensburg road to the
New York Central. Eventually he gave up
in disgust. The plan of through line by
by ferry at Oyster Bay had met with
similar failure.
In the fall of 1899 A. A. EcLsod, then
supreme in the Reading railroad, began to
! buy both New England and Boston and
Maine stock, planning grand system from
| the Pennsylvania coal mines into the east
ern cities. As was proved by Mr.. Rice's
| subsequent exposures, Mcleod bought the
| stock on a margin, at ruinous commissions,
and by the alleged improper use of the
Readings treasury collateral. The whole
l project broke down with Readings bank
ruptcy in the spring of 1899; but Mcleod,
although subsequently turned ont of the
Boston and Maine presidency, managed to
| dent of the New England in March Of the
1 present year.
Once elected, Mcleod began to make
l plans again with his usual restlessness.
I His project of building an independent ex-
| tension from Brewsters into NewYork city
was wholly visionary, but such was his
1 we'll known persussiveness that he induced
many well known bankers and brokers in
this city to lend him support and pool
their holdings of New England stock with
him. An alliance with Russell Sage, who
had some railroad property near New York
which he wished to sell to the New England
caused some commotion in the stock mar
ket.
The scheme failed utterly aud the subse-
quent proceedings are well known to the
public.
A day or two ago Sage announced that
the New England pool was dissolved, and
by all accounts McLeod's actual holdings
came on the market around 10.
NOT AN UNFRIENDLY MOVE SAYS MR..
PLATT.
NEW YORK, Dec. 27-Thomas g. Platt,
who was to day appointed receiver of the
New York and New England railroad was
seen at his Office In the United States Elk
press company's building. He said the
atidavits on which the application for a
receivership for the New York and New
| England company were based set forth the
management of the road and It's present
insolvent condition. The order to show
| cauee why receiver should not be ap
l pointed was returnable January 10. "This
| move" said Mr.. Platt, "should not be re-
garded as an unfriendly one. It was
l deemed advisable to conserve and protect
the interests of the road, It's bond and
stockholders and creditors. The road was
in such q condition that the protection of
i the courts had to be invoked"
1.-THE application, of course, admit will
l probably come in the nature of q surprise
60 the officials of the road, although they
should have known in its present condi-
ion an application fer receiver was per-
feotly natural. When Mr.. Boardman ar
tives from Albany with the papers shall
be able to tell something more"
! LOST OVER $500, 900.
PHILADELPHIA, Dec. 27.-Samuel He'll.
ner, trading as Percy Heilner & son, in the
coal commission business in this city, to.
day assigned to Albert B. Wsymer.
Mr.. Heilner Is q director of the New
York and New England Railroad company
and his failure is directly due to the down.
fall of that corporation, he being large
holder of It's securities. No statement of
| assets and liabilities has yet been made,
but 1t is reported that Mr.. Heilner lost be-
tween $500, 900 and $s5o,oOo in New En-
gland.
/ The failure Is an Important one and the
firm is one Of the oldest In the coal bust
| ness, 1t having been established In 1856.
Mr.. Heilner has been one of the direc
tors Of the New England road since March
last, at which time his financial support
contributed largely to the success Of Mr..
| Mcleod In securing control of the proper
| ty. Mr.. Heilner, whose relations with the
Beading road have always been very close,
was induced last winter, 1t is said, to aid
Mr.. Mcleod In his efforts to obtain con-
| troll of tho New England and he advanced
$3.50, 600. This sum is said to have been
lost. A few weeks ago, when New Eng
land stock advanced sharply on the pros
pect OF the company securing an indie
pendent entrance into New York city Mr..
Heilner increased his interest in the
stock. About the same time 1t was de-
olared here to-day Q speculative pool was
formed to advance the stock, but its Of
forts were rendered poWerless by heavy
sales.
Hsilner was forced to part with his hold
ings, which 30 crippled his Anances as to
render An assignment inevitable. The en-
barrassed firm has Offices In New York,
Baltimore, Reading and London @ well as
In Philadelphia. Il was for : time the coal