St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-03-13
A MIDNIGHT RECEIVER.
Talk OF One Being Sprung for the
New York & New En-
gland.
tion by a Friend OF the
Road.

Boston, March 12.--In view Of pub
| l:shed statement that midnight re-
ceivership might Illustrate the plan
of the Mcleod interests to Oh
tain control of the New York & New
| England railroad at the annual meeting
Tuesday; that both sides were said to
be prepared for receivership, and
| the additional assertion that the
| Reading interests had the proxies to
control the election, but not the cash to
hold the stock under the fire of re-
| ceivership. A statement Of the cOndi-
! ton Of the New England road and the
outlook for 1t under Reading control is
made by parties friendly to that man
! agement, III substance as follows:
IA gigantic effort is still being made
| to depress New England stock in order
that the control may pass from the
hands of Reading friends, ,Ibut the effort
ing debt on Dec. 81, 1890, was
only S379,354.- as against $685.
393 on Dec. 81, 1891; the reduc-
! ton during the year having been
| S59,O99. The Parsons management,
| which succeeded that of Mr.. Corbin in
| the first quarter Of 1892, was hampered
| in its financial management by the pur-
| chase last autumn Of the majority of the
| stock by the Mcleod interest. A re-
| duction in the amount of floating debt,
| although small, was therefore very en-
couraging. The gross floating debt in
| cludeS S470,910 interest accrued to Dec.
| 81, 1892. Against the interest is held
| $685., $50 cash, S662, 395 due from agents
and conductors, and sS2S,5O due from
companies and individuals. These
facts show that receivership is
| impossible. The money for interest
is in hand, and the notes payable of
S442, ,S53 are not nearly due. The aIli-
| ance with the Reading will be most adj
yantageous to the New England. In
fact, its net earnings increased $4,000
in the last quarter of 1892, and gross
| earnings for January, 1898, increased
$4,000. The purchase of the New York
| d Northern road Dy the New Haven
interests prevented the New England
from obtaining an all-rail entrance into
New York city on the east side of the
! Hudson river, but the Sound line from
New London to New York is in opera
ton, and will so continue"
The statement gives in detail the
manner in which traffic may be handled
| and the advantages gained thereby,
! continuing:
..If the New Haven plans could be
! fully carried out, the New England
states would have no railroad competi-
| ton, and the laws of several of the
states are such that noscOmpeting mile
| age could ever be built. There Is no
| doubt that the net earnings of the roads
| embraced IN the Mcleod combination
will be materially increased when the
| plans shall be under way. The total
| capitalization on which charges have to
| be paid OH the 526 miles of New York &
| New England is S22.075,5 $50. The
| fixed interest capitalization in the
IA miles of the Poughkeep
sic bridge system is $7,723,-
900. bringing the total of
67O miles up to 500, 800, or only S44,
| 900 per mile, A statement of the ope-
rations of the New York d New Eng
| land road for nine years demonstrated
| that the increase in gross receipts has
been great, and that the net earnings
| have kept pace with the increased
| charges. The surplus earnings over
| fixed charges for the past eight years
aggregate $1,061,03S. or SSS.93S more
than the dividends paid. New England
would seem able to earn fixed charges
| in almost the poorest kiud of year,
| and the effects of the coal, freight and
passenger business over the Reading d
| Poughkeepsie bridge system has yet to
| be tested. Mr.. McLeod's associates are
| confident that his control of the New
| England Will be of the greatest benefit
to the shareholders of that company as
well as to the Reading company.