The sun., 1893-03-23

@~%V@S&O<ES
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TIE Fss.re OF wsn Streets Fsverite FREQ
erty is Not Brs1rsnt-Ests.sses for che
Ohio and Hisssssipprs Bee~esn'sat,c..
krspert from Philsdelphis that the now
directors Of the New York and New England
Railroad Company have declared themselves
prepared to take care Of its floating debt has
raised the question whether the present direc-
tors really knew tho amount Of liabilities the
company may be called upon to meet within
very abort time The net floating debt on Dec.
81 last was stated In the annual report to be
s3S0.000. IL is stated. however. on excellent
authority that much larger amount may be
demanded at any time. and that the assets
pledged ss security for the debt could not bs
realized on to protect such demanda
It Is said that 81, 500 900 10 moderate ssti-
mate Of the obligations Of the company. for
which provision will have to be made within
brief period. The annual report states that
the company has hypothecated the bonds Of
the Providence and Springfield Railroad Com
pany. Tho amount borrowed on these bonds
10 S750.000. and in case Of a demand upon the
company itwould be difficult to realize upon
them. This statement 10 based upon the fact
that the bonds were sold By the company at
the time Of issue. July I. 1892. to F. II. Prince
: d Co. OF Boston. and that when the New York
and New England Company Attem pted to de-
'o liver them little later that frm repudisted
I the sale and presented an opinion Of their
counsel that they could not be held upon their
9 contract because Of tho possible legal In
validity Of tho bonds
So Mr.. Prince was Vice. President OF the eompa.
u ~. and 10 IL argued that II an officer Of the
u company throws such cloud upon the securi-
ties. tits not probable that outsiders would
care to purchase thcm. Legal proceedings
Z are now pending. In which II 10 asserted that
the bonds are invalid. The sale OF those bonds
, viii not be furth rod H. ms reported. the New
!, England Company intends to lay old rails
upon the extension OF the Providence and
!, Springfield road. for tho building Of which a
{ portion OF the bonds was issued
. The annual report shows unpaid vouchers
I. u over $000. O00 and after meeting the heavy
:. interest payments OF Jan. ! and Feb 1t is
! certain that this amount has largely in ncreased.
4 1t IL known that the company avoided default
!. upon its tonds twice during the last two
'rSsars only through tho leniency Of It's cred
Nors. who consented that the payment OF their
bills should be deferred that maturing cou-
y pons might be paid. An Official OF the Erie
Railroad said few days ago that the New
England Company owed It S150.000. and It
II asserted that It owes the Reading Com pany
Z neary 100000 also on traffic balances. three
Il quarters Of which matured prior to Jan. l.
= The sSOOC Of old car mileage mentioned in
. the annual report was paid almost wholly by
I, notes. which will soon mature. while on Jan.
: j next s33O.t 90 must DO pnid for interest upon
). the frs mortgage bonds.
With a fve-hour train to Boston via the
Shore Line a certa nty and probably to run at
!, 8 r. NJ. with the diversion OF all the Boston
!. and Maine business to the Consolidated road
under tho recent contract between the two.
with the diversion Of ,he Eries bushes to the
Z Consolidated road. which has already begun.
= and the acquisition by the Consolidated road
I of the floats. niers. &c. Of tho New York and
Northern Railroad Company thus depriving
lethe New England road Of any all,rail line to
q The scmnsny 'Hsa H
/. yerely ts1 its revenue. and that the directors
ca sa%s .heua a. b bsisp s1
s:s ss1sss5 iSss :: hs5f ta s$sS ,ss
accounts due to the railroad company by its
ans fa%s a%s sS
the New ERGlsnd land road Eeesiysr.hip and
whether brought about by nnIious creditors
that the rm Which eaSf'!NP' s"sd oat
recent attachment holds the .companys obli-
Collected. and that they mature in the near near
ss G. s nsI' the ssss New R"s Fsns s
road by tho Realizing Is: in certain way. op.
Believed that one Il the chief reasons % Tor the
purchase OF the New England rond by tho
: Heading people was that the latter might force
j eastbound freight oyer the Central new Eng
. land snd i1s ., Western Railroad. . road which
son Rivor, to Hartford. By this arran cement
& tho New England road. receiving the freight |
at Hartford. will get only one,hnlf the revenue |
on Reading business that IT. heretofore re- |
Erie road to Boston Is 22!, miles while that |
from the Rending via Hartford to Boston In |
only ll6 miles. This arrangement will deprive |
the New England roal OF about Quo half or the
: haul.
The Ohio and sI'srls~Ippi Reorganization.
The following estimates have been made by
those who havo undertaken the reoranniza-
3 tion Of Tho Ohio and Mississippi Railroad Com
rany. and the consolidation Of that company
Z with the baltimore and Ohio Southwestern
Railroad. They expect to expend to a1van-
tnge during the current year S2.000.OOO upon
(, The first named road. and after that has been
done md tho two ro.ltis G'e operated as one In
connection with the Baltimore and Ohio Rail
road they believe the gross earnings Of the |
Ohio and Mississippi next year will be 81. .75O.-
OOO. and nj tho Baltimore and Ohio South
western road S2.S5O. 600. a tntal OF S7.6OOO0O. |
The Baltimore and Ohio Southwestern
rond is now operated for 03 per cent. Of it's |
gross earnings. and Il Is believed that tho con-
soli,lated line can Ee operated for the same |
percentage. that is for 81. 1888 900, which would
leave net earnings Of S2.S12.000. |
The nyed charges Of tho consolidated line |
under the plan Of reorganization and con- |
i fAntt ,vn ~