The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-28
LOADED WITH DEBT
Another Railway i'm Possession of
the United States Court.
Ex-senator L. c. Platt Appointed Tenn.
porary Receiver of the New York &
New England Company.
COULD NOT PAY INTEREST
100000 Needed for the Purpose
on the lSt OF January.
Total Liabilities, Including Bonds, Stock
and Floating Debt, S97,587,3l2O
-McLeod's Statement,

New England railroad, after a very trouble
some career has passed into the hands Of
a receiver. The application made to
Judge Wallace In the United States court
at Albany. The court appointed ex-senator
Thomas c. Platt as temporary receiver.
Mr. Platt is one Of the directors of the
company.
The appointment caused. virtually no sur
prise, as it was we'll known that definite
steps looking to such a result had been
taken last night. 1t is said that a confer
ence was held at the Fifth-avenue Hotel
last night and that at a late hour the de-
termination was reached to ask for a re-
ceiver. The conferees. it is claimed, were
Thomas C. Platt and F. II. Prince. di-
| rectors of the New England company; A. b.
Bcardman and Frank II. Platt, of the law
firm of Tracy, Platt & Boardman, and
some capitalists interested in the securi-
| ties of the company Mr. Boardman left
for Albany on midnight train in order to
| make the application for the appointment
! of receiver to-day. Thomas c. Platt when
| questioned about this report, referred the
| inquirer to the officers of the New England
company for all information. Mr.. PIatt
| admitted, however, that there was some
| truth in the story referred to.
One Of the capitalists who attended the
conference at the Fifth-avenue Hotel was
| more frank than Mr.. Platt. He said that,
as a matter of fact, the alleged conference
| last night was really a. little meeting of the
| committee appointed some time ago to
| raise the money required by the company
| to pay the interest due on Jan. 1. The sum
| Of 100000 was required for that purpose
| and the committee had been unable to Sc
| cure it. The responses to the application
| Of the committee had been very slow I'm
| der the circumstances, therefore, it was
necessary that an application should be
| made for receiver for the road. 1t did
| not follow, however that the application
| would be inimical to the interests repre-
| sented by Mr.. Mcleod although 1t was not
| believed that Mr.. Mcleod now held any
| more stock than was necessary to qualify
| him as a director of the company.
| When seen at his office this afternoon
| Mr. Tlatt said the afiidavits on which the
| application for a receivership were based
/ set forth the mismanagement of the road
| and its present insolvent condition. The
| order to show cause why a receiver should
| not be appointed was returnable Jan. 10.
This move" said Mr.. Platt, should not
be regarded as an unfriendly one. 1t was
| deemed advisable to conserve and protect
the interests of the road, it's bonds and
| stockholders and creditors The road was
| in such condition that the protection of
the courts had to be invoked. The applica-
ton, of course, will come in the nature of
a surprise to the officials of the road, al
though they should have known that in it's
| present condition application for a re-
ceiver was perfectly natural
/ MEETING OF STOCKHOLDERS
A meeting of stockholders of the New
England company was held this afternoon
to vote on the question of ratifying the
| lease to the New England company of the
| New York, New England e. Northern rail-
| road President Mcleod was present, and
made a statement, explaining what had
been done since his connection with the
road as it's president The voting the
| question of the lease will be continued till
tomorrow, when. it is expected, sufficient
votes will be received to ratify. 1t was
while the voting was going on to-day that
the announcement made that Mr..
Platt had been appointed receiver. Mr..
Mcleod took the appointment OF receiver
good humoredy, apparently. When told
that a representative of the petitioners for
| receiver had said that no allegations had
been made against his management, but
that the appointment had been asked sole
ly on the ground that the road was inSolv-
ent Mr.. Mcleod said: Then 1t is very
| strange that the petitioners uld not HOllIy
me of what they were going to do. You
can put it down that the application for a
receiver was inimical to me. We shall
| see however, whether the road will con
tin,e in the nossession of a receiver
| on the Stock Exchange the crowd OF
brokers in New England was the largest
| in the room The transactions in the stock
early in the day were enormous and the
| excitement intense as no one knew any
thing definite concerning the receivership:
| The New York * New England Railroad
| Company owns $50 miles of road and lease:
II miles. The company was formed by tht
mortgage bonds issued by the Boston. Hart
| ford & Erie Railroad Company. The in
debtedness amounts TO $685.. .S125O, includ
bIlities. There is also a floating debt o
$3.50, COO There is about $20,O00OOO OF common
stock The New England has has some yalu I
| able property, especially In the way or ter
minais. Through it's lease of the Norwich
& Worcester railroad it controls the Nor Nor
pany's line of steamboats,.
| The statement of the New York & New
ENGLAND road for the nine months endins
$4 626. .467, an increase OF 1888; operating eX
penses, &.S79,S47, an increase of $l06. SD; ne
| income s., go, a decrease OF Sl99S9. Th
| total charges exceeded the net income b.
$16S 007. an increase over the deficit for th'
same period Of 1892 Of S'ISz; o., cd The bills pay
bonds by the Providence & Springfield road
The gross fl ostipg st Ing debt ON Sept + ,a SO So arp
year previous The cash offsets were S37,
O16 and 8. 22s. $50 due due by railroad companie
and individuals. The funded debt was $17,
151, ,2l0
MLEOD'S STATEMENT
At the stockholders meeting to-da,
President Mcleod made the following
statement:
ION the lith of March last was electe
TO the presidency of your company.
found a empty treasury, very many over
due and unpaid vouchers and large mum
ber Of creditors, several of whom were ur
gently pressing their claims for a settle
ment. The very next day after my elec
ton an attachment was placed, much Z
my astonishment. on large portion o
Your rolling stock 1t made. too, b.
one OF the creditors who, L might almos
say had been treated as a preferred cred
itor by the previous manager by payin
him large amounts just before the change
/ Several members of the board and mysel
promptly came to the relief of the com
pany. the attachments were released an
sufficient funds advanced 10 provide 70
pressing claims. This established 10
great extent the credit of the company an
confidence in the public mind
THE management then sought to plac
the property In better condition physicall
1T .s~.l.