The herald., 1893-12-28
ANOTHER OBJECT LESSON.
Railroad Receiverships the
Order of the Day.
Collapse of the New York and
New England.
Boss Platt in Temporary Charge of
the Property.
President Mcleod Taken by Surprises
He Will Try to Prevent the Re.
ceivership from Becoming !
Permanent.
By the Associated Press.


ALBANY, N. Y. Dec. 27.-Boardman,
of the law firm of Tracy, Boardman &
Platt, appeared before Judge Wallace, of
the United States court, this morning
and asked that temporary receiver be
appointed for the New York and New
England railroad. The court granted :
the request and appointed Hon. T. G.
Platt, one of the directors of the road.
1t is understood he is of the party op-
posed to President Mcleod. who is also
president and receiver of the Reading
road. 1t is supposed Mcleod was GEEK
New England road, and that in the ap-
pointment OF Platt he was outwitted.
Frederick ii. Prince OF Boston is ameng
the leading spirits in opposition to Me-,
Leod.
The application for receivers ia based
on mismanagement OF the road and its !
insolvency. An order to show cause;
why a permanent receiver should not !
be appointed was made, returnable JAM
uary 10th.
HOW IT CAME ABOUT.
New YORK, Dec. 27.-A temporary re-
ceivership of the New York and New
England railroad was decided on lasti
night. One OF the directors said J
''There will be a lively fight if Mcleod
does not put up the money for the jan
uary interest. Both sides are prepared
for almost any emergency. and in such
event it will be simply a question
of who gets there first. II Mcleod
raises the interest money there will be !
no receivership. If not, there will be.
His action will depend on 9 control oil
the stock. The Mcleod party will not
the road. Whether or not they can dol
so is an open question. The trouble
with the New England for the past five
or ak years has been that it has had no
working capital. The president always
had to provide for all the deficiencies"
Receiver Platt said: "The move is
not unfriendly, but is merely taken to
conserve the interests of the security
holders and creditors. OF course the
action was surprise to tie officers Of
the road"
M'LEoD INDIGNANT.
Mcleod, when seen. expressed great
indignation at the move, 2nd declarSdi
il he had known of it, it should mott
have taken place. He declared it was
very unfriendly to him, but declined to
talk further till he had seen the papersj
filed.
The move does not affect the Read.
ing road, McLeod's connection With
the latter having ceased when he was
removed from the receivership OF the,
Beading, some time ago. /
CAUSED NO SURPRISE.
The appointment caused virtually mo-
surprise. II was well known that definite
steps looking to such result had beeis
taken. Last night, it is said, confer.i
ence was held at the Fifth-Avenue hotel !
and at a late hour the determination
was reached to ask for receiver. The
conferees were Thomas Q. Platt and +. {
H. Prince, directors OF the New England
company; A. B. Boardman and Frank :
H. Platt of the law firm of Tracy, Platts
& Boardman, and some capitalists inter- J
ssted in the securities of the company.
Boardman left for Albany ON the mid
night train to make application for ths
appointment of receiver.
One of the capitalists who attended
the conference eaid the conference was
really meeting of the committee APP
pointed some time ago to raise the
money required to pay the interest due
January lst; 100000 is required for
that purpose, and the committee has
been unable to secure it. Responses to
the applications of the committee have
been very slow, and under the circum-
stances it was necessary that an appli-
cation be made for receiver. 1t did
not follow, however, that the application
would be inimical to the interests repre-
sented by Mcleod, although it WAS not
believed Mcleod held any more stock
than was necessary to qualify him ~ .
director and president of the company.
STOCKHOLDERS MEETING.
A meeting of the stockholders Of the
New England was held this afternoon
to vote on the question Of ratifying. !.
the lease to the New England company
of the New York. New England anG
Northern railroad. Mcleod WAS pres
ent and made q statement explainingi
what had been done since his con-
nection with the road as president.
Voting on the question OF lease will De
continued tomorrow, when it is sx-
pected sufficient votes will be received
to ratify.
day, the announcement was made that
Plstt had been appointed receiver. Nc
Leod aaid the application for ie-
ceiver was inimical to him.
M'LEoD WILL FIGHT.
"We shall see, however, whether the
road continues in the hands of ra-
ceiver," said he. II was elecfed rra
dent last March and found an ampts
treasury, overdue and unpaid vnrri r..
and many pressing creditors. fhe -
day after my election an attschi. ~
was placed on large postlor oi tho ...ti
ing stock. Several membess ul SO,
board and myself promptly cafns q a -
relief of the company; he ae.s.ci, 4aen
were released and sufficient irnds 80
vided for pressing cauGls : u.s,f.
vances made 10 mse july nseiose