New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-13
MR.. WLEOD'S COMBINATION.
DEFENCE OF HIS NEw.ENGLAND SCHEME.
MIDNIGHT EECEIvFRsnIP FOR TIE ROAD
BELIEVED TO BE 1MPOSSIBLE-AD.
VANTAGES OF THE READING


| ALLIANCE SET FORTH.
IoNon. March Fin Wow Of the published state
ment That midnight receivcrshp might Illustrate the
plan OF the Mcleod to obtain control of the
| New-fork and New England Railroad ut tho annual
meeting on Tuesday that both sides were said to be
prepared Tor rccclvcrshp, and the additional asscr.
'Ioh that the Reading interests had the proxies
cohro the election but not the cash to hold the stock
uhdcr tho fire OF reccivcrshp. the following state
m"n OF the condition OF the New En- gland road and
the outlook for It under Reading control is made by
| parties friendly to that management.
gigantic effort Is still being made 70 dcprcss Ncw-
| England stock In order that the control may pas,
| from the hands Of Readings friends. but the effort
Will be unsuccessful. The net loating debt on De-
ccmbcr 81 1892. was only S370.35i. as against Si3s-
303 on December 81. 1891. the reduction during the
year having been Sjo.O30. The Parsons mana 20
mcnt which succeeded that OF Mr. CorlIn I'm the first
quarter OF 1892. was hampcred in It's financial man
agement by the purchase last autumn OF the ma
jority OF the stock by the Mcleod interest. \ re-
ductlon In the amount OF floating debt although small
was therefore very encouraging. The gross floating
debt includes Si7oo1O, interest accrued December
81 1892 Against the interest Is held $2s2 500 cash.
SG62, 395 due from agents and conductors and ss2s
5O3 due from companies and individuals These facts
show that rccciverShlp Is impossible. The money
for interest is in hand and the notes payable OF s442
S53 not nearly due.
Tho alliance with the Reading will he most ad
vantageous to the New. England. In fact It's net
earnings increased $4,000 in the last quarter OF
1892 and gross earnings for January 1893 increased
10000. The New England road consists OF 300
miles owned. 1G5 miles leased and IL miles run
under Traffic arrangements. The company
controls by lease direct entrance into Eoron Provi-
dence Hartford, Springfield. Worcester and other i'm.
porant points. Through the old lease Of thc Norwich
and Worcester Railroad. the New gland controls the
Norwich and NcwYCrk Transportation Company's line
from NptyI nnI,p tn No
The purchase OF the New'Yorh and Northern Railroad
by the Ncw-Ilaven interests prevented the New Eng
land from obtaining al-rail entrance into New
York City the east side OF the Hudson River but
the sound Line, from NewLOndon 10 Ncw-YorL Is
In operation, and VIII continue.
The failure OF the Reading interests 10 acouIrc tho
New-iork and Northern even II such a deal was
seriously thought Of mag not be Of particular moment
inasmuch as the New-York terminal would have been
far away from the business centre and TIE cost was
excessive. Freight via the New ugland destined
TO Ncw-iork city which cannot be shipped by the
sound line can go by rail the western banks OF
the Hudson River, The Philadelphia and Reading
leases the Philadelphia, Reading and New England
road. which Is the reorganization and consolidation
OF the Pouglkeepsc Bridge and connecting lines II
furnishes the shortest line between the Pcnnsyl
coal fields and the NewEngland States. and the I'm
portancc Of the matter to both the Reading and TO
the Ncw-York and New En- gland roud is that tie
latter runs to Iopewel. where CONNECTION IS made
with the Poughkcepsie Bridge system. The freight Of
the New England could be moved from HOpcwell 10
the Bridge, only twelve miles northwestcry. cross
the Hudson and make connection with three lines
the west bank OF the Hudson thus reaching It's New
York destination. The Reading Railroad controls the
Hartford and Connecticut Western Railroad. giving
entrance into Hartford, and n twenty mile spur built
to springfield would give close connection with tho
Boston and Maine.
II the New-laven plan could be fully carried out,
the New england states would have railroad com
petition and the laws Of several Of the states such
that no competing mileage could ever be built There
f. doubt that the net earnings Of the roads en-
bracoh In the Mcleod combination viii be materially
Increased when the plans shall be under way.
The total capitalization on which charges have to
be paid on the 6oG miles Of NcwIOrk and Ncv-Eng-
land Is so2075.55o. The fixed Interest capiinlha'
tion on the LA miles OF the Poughkcepsc Bridge
systcm Is 81 $4,000 bringing the total Of $40 miles
M 20 800, 70e 800 or only $4,000 mile. state
meut OF the operations Of the New York ard New
England road for nine years demonstrated TINT The
Increase In gross receipt, has been great and that
the net earnings have kept pace With tho Increased
charges.
The surplus earnings fixed charges for The
past eight years aggregate ~ O6l O1 or @I-V3s more
Than the dividends paid New England would seem nnc
10 earn fixed charges In almost the poorest kind OF
Year and the effect Of HE coal freight and passenger
business over the Readings lOughkccp-c bridge rvs
TEN may yet be tested.
Mr. McLcod's associates are confident that his con
frJ OF the New ngand will BE- Of the greatest bene-
I'll to the shareholders OF that company a. WEI as 10
the Reading Company.