The Providence news. (Providence [R.I.]) 1891-1906, 1893-12-29
Opposition 10 Hart as a New EaG-
land Road ReceiVef.
PLAqq MEN SCORE A BIG POINT
To the Great Embarrassment OF tho Hart
.Fac,ion-The Consolidated Interests
Are Hound Up In Hart->tockholders
Should Be Protected, Says MIR. strout.

III tuiS CITY ySotc4uuy hitcTuooh
the two factions of the New England
road came in close contact. and in the
deal which followed the Hart faction
were clevcrly side-tracked.
II was the desire of the William I.
Hart faction that the hearing for the APP
pointment of a receiver In Rhode Island
should be heard before Judge Carpenter
To their surprise they found Judge Colt
awaiting them, and in accordance with
his right he could assume jurisdiction In
Rhode Island. Application was therefore
made to Judge Colt for the appointment
OF receiver.
Each faction came from Boston with
the express purpose OF forestnlling the
other and obtaining action by the Judge.
w. X. Loring, representing the Hart fac
tion, addressed the court Judge Colt
stated that no had received notice that
the other party was to be represented, and
he would therefore wait.
j. M. Ripley local counsel for the New
York and New England. said that he did
not propose to mix in the affair, but that
he wished to see both sides have fair play.
He had not been informed officially of
anything that he should do.
The court, therefore, waited for Mr..
Strout, representing L. c. Platt Mr..
Strout failed to put In an appearance after
the arrival OF the Boston train, and n
telegram was received that he would reach
the city ut 4 o'clock. The court, there
fore, took recess until that hour.
In Harts Behalf
When the court resumed Judge Colt or
dered Mr.. Loring to proceed. The latter
on fad ha tod M hftr
and Fitch, the chief trustees of the second
mortgage bonds of the New England
road. They had expected that full hear.
ing of the case would be held in Connecti-
cut, as with the exceptions of IL miles that
are operated in New York, a few miles i'm
Rhode Island, and not exceeding 80 miles
in Massachusetts, the property of the
company was. located in Connecticut,
whose entire length it traversed. 1t was
proper then, he claimed. that receiver
should therefore be selected from that por-
ton of country where the bulk of prop
erty lies.
Judge Townsend of Albany, he said,
had been asked TO appoint Hart as re-
ceiver, who was trustee of the Burnell
mortgage, the foreclosure of which made
the New England, and who had been the
president OF the road. IL was then found
that Judge Wallace had appointed Platt,
and that the matter had been continued
to Jan. 10, when the question OF appoint
ing a final receiver should be settled. The
trustees OF the second mortgages, he said,
did not know Mr.. platt. They are in
formed he is not railroad man. He said
that writs of attachment amounting to
100000 were issued against the company
in Connecticut; that writs were out in
Boston. and that attempts had been made
to see the bank account Of the company
in Boston.
1t was necessary that the attachments
should be prevented; to further postpone
the appointment OF receiver would be
dangerous to interests of bondholders.
The Other Side of II.
Attorney Strout in answering said he
had been taken wholly by surprise and
felt that he could not 20 on at this mo-
ment. There has been period of general
depression of business and the New Eng
land had been unable to meet demands.
1t had been crippled by legal proceedings,
one of which was the petition now pend
ing in this city, enjoining the guarantee
ing Of the Providence and Springfield
bonds, amounting to nearly sl,000,0O0.
In answer TO question OF Judge Colt,
Mr.. Strout said the bill presented TO and
acted upon by Judge Wallace was drawn
up i'm good faith for and by Theodore +.
Ward, a creditor for very large amount.
The bill was based upon the insolvency of
the road and the peril which would fall
upon the road if the contemplated attach
ments were made Continuing, Mr..
Strout spoke of the rivalry that had ex-
listed between the New England and the
Consolidated roads for five years. The
controllers OF the Consolidated were very
large. holders of the second mortgage
bonds of the New England. The New
England must be guarded from the dan
ger which was menacing 1t through the
holding of those bonds That the road
will not suffer further embarrassment, it
Il necessary To secure efficient operation of
the property and harmony in connection
of directors With the road properly man
aged and protected the interests of all
mortgage and stockholders would be
guarded.
Individually he could only present
general affidavit, which had no. as yet
been sworn to. but which would be in the
near future. 1t only asks that Thomas
T.. Platt, "a disintercsted persop having
sufficient knowledge OF railroads, be APP
pointed receiver.
He believed that things had been
operated in the Interests of Mr.. Hart,
and that IL Mr.. Hart be appointed he
would more or less, be under the influence
of the second mortgage bondholders and
upon their attitude towards the New
England it was not necessary to CON-
Iaent.
Piatt Contingent Wins.
Judge Colt said that I'm this matter he
labored under great embarrassment.
That IL was necessary that some person
be made receiver was quite apparent: he
did not see lis way clear TO appoint either
OF the gentlemen at present When one
court made certain appointment AMI
another court another, IL was matter
OF comfy that the older appointment
should have prior claim and recognition,
and under that custom and rule he should
eppoint "a receiver Mr. platt. However,
be would hear the case further.
The Hart faction were much disap-
pointed at the result OF the hearing and