The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1893-12-29

Managers Of the Road Charged
with Fraudulent Practices,
LOOKED FOR PERSONAL INTERESTS

And In So Doing, Il Is Alleged, They Ois-
regarded the Best Interests Of the Conn
pany-rhe Road Said TO be Hopsiessiy
Insolvont.
NEW YoRK, Dec. 20 The papers on
which Judge Wallace appointed Thomas
o. Platt temporary receiver Of the New
York and New England company were
fled in the Office Of the clerk Of the cir
cult court Of the United States for the
southern district Of New York. The bill
Of complaint makes Theodore f. Wood
complainant IL was sworn to by Mr.
Wood on Dec. 26.
In the bill Of complaint general charges
are made against the directors Of fraud In
connection with the management Of the
road. It is alleged that while the de
PENDANTS claim that during 1891 IL had
earned ssi 1921. "a applicable 10 the pay
ment of dividends upon its. preferred
stock the annual report shows chat the
statement Of the alleged surplus of earn
inRs is false the accounts having been
spent in the operation of its road and
property oharReabie 10 its operating eX
penses.
The oompany had not kept the road in
proper condition 1t paid a $4,000 divi-
dend on its preferred stock in 1891 when
| it had not earned the money. The road
bed has become unsafe The board of di-
recUuIs has managed the company's af-
fairs in entIre u.sgegard of the interests Of
| the company, and CERTAIN. Of it's directors,
| individually and collectively, have used
| their position and official relation to the
company to further their private interests
| at its expense.
The complainant says hs believes the
report as to the available sssets is untrue
and that large part Of the assets are, in
fact. worthless, and that the actual def
oienoy is more than 81 100000. For more
than three years past the company had
operated its railroad at a loss increasing
every year
The bill therefore asked that a receiver
be appointed TO prevent the disintegration
Of the road and TO protect the interests OF
the stockholders and the bondholders
T, G. Platt says the company is hope
lsssly insolvent and must default on the
January interest. He says the United
States Express company owns more than
5000 shares of common stock.
Judge Wallace in his order appointing
Thomas @. Platt receiver fixes Jan. II
as the day for the question as to a per
D the temporary receiver to furnish $10O OOC
bonds within five days.
, In Boston yesterday deputy sheriff
q visited the New York and New England
Offices with writs representing h. NJ
D Morse, Jr. He served the treasurer will
, a notice directing that official to turT
over to him all property in his hand
q other than rolling stock in actual use Al
, attachment of the rolling stock was ais
served on Vice President Peck and Gen
eral Manager OdelI. The sheriff decline,
to assume the risk, and went away with
N opt eC-lpletiuE the attachment
III An attachment or tGJ0, 900 was placed o.
q the rolling stock of the New York an
New England road in East Hartford o
y Wednesday evening, shortly before tn
appointment of w. II. Hart, of Boston, a
receiver for the road in Connecticut Th
e papers were served before the receiver ha
!, been appointed in New Haven, and wer
thus made binding. IL is placed to cove
o money loaned by the Philadelphia an
O Reading road, and the New York an
New England A number of freigh
trains are now tied up in the yards,
A dispatch from New Haven says tha
in financial circles there the downfall {
d the New York and New England is col
d stdered complete ana lJS feoiBdulHdllO
on basis of its old stock impossible. III
general belief is that the financial SHOW
e ing of the company will be worse whe
the facts come out than has been dreame
e of, and that Mr. Mcleod has only su
Is oesded in operating the road by deferrin
settlements and carrying along its deb
by methods OF the most questionable cha
d aoter, including false statements of IL
roads condition. The evidence is stron
II that the Hart receivership is in the intere
Of the Consolidated road and its allies wi
hold probably not less than one-ffth
L the 81, 900, 900 New England second NOR
Y gage bonds outstanding.
n At New Haven last night Judge Tow
I send granted the request of Attorney Pc
p kins, counsel for Receiver Hart, Of IL
u New York and New England rail1Cad,
I summon before him Sheriff Preston al
). have him give reason why he should NJ
T. bs held in contempt because he had a
tached the rolling stock of the road ov'
le the precedence of the appointment Of
10 receiver causing the general traffic Of Il
= road to be tied up. The hearing has bee
10 fixed for this afternoon.