The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-12-28
The officers SURPRISED.

The officers Surprised.
New York, Dec. 27.-The temporary
receivership for the New York & New
England was decided on last night.
One of the directors said: There will
be a lively fight if Mcleod does not
put UP money for the January interest
Both sides are prepared for almost any
and in such an event it
will be simply a question of who gets
there first. If Mcleod raises the in
terest money there will be no receiver
ship. If not there will. His action
will depend on the control of the stock.
The Mcleod party will not put up the
money unless it can control the road,
whether or not he can do so is an open
question. The trouble with the New
England road for the past five or six
years has been that it had no working
capital. The president always had to
provide for all deficiencies
Receiver Plat said the move was
not unfriendly but was merely taken
to conserve the interests of the security
holders and creditors. OF course the
action was a surprise to the officers of
the road.
Mcleod, when seen, expressed great
Indignation at the move, and declared
if he had known of tilt should not
have taken place. He declared it very
unfriendly to him but declined to talk
further till he had seen the papers
filed.
The move does not affect the Reading
road, McLeods connection Rith the
latter having ceased when he was re-
from the receivership of the
Reading some time ago.
= The appointment caused virtually
no surprise. 1t is well known that
definite steps looking to such result
had been taken last night. 1t is said
a conference was held at the Fifth
Avenue hotel and at a late hour the
determination was reached to ask for
a receiver. The conferees were Thomas
G. Platt and F. H. Prince, directors of
the New England company; A. B.
Boardman and Frank H. Plat of the
law firm of Tracy, Plat & Boardman,
and some capitalists interested in the
securities of the company Boardman
left for Albany on the midnight train
to make application for the appoint
ment of a receiver. One of the capital
lists who attended the conference said
the conference was really little meet
ing of the committee appointed
some time ago to raise the money
required to pay the interest due
January 1; 100000 will be re-
quired for that purpose, and the com
mittee has been unable to secure it.
Responses to the application of the
committee have been very slow. Under
the circumstances it was necessary
that application be made for a receiver
1t did not follow, however, that the
application would be inimical to the
interests represented by Mcleod, al
though 1t was not believed that Nc
Leod now held any more stock than
necessary to qualify him as director
and president of the company.
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 &
Northern railroad. Mcleod was pres
ent and made a statement explaining
what had been done since his connec-
ton with the road as president. Vot-
ing on the question of the lease will
be continued tomorrow, when it is ex-
pected sufficient votes will be received
TO ratify. While the voting was going
on today, the announcement was made
that Plat had been appointed re-
ceiver.
Mcleod said the application for a re-
celver was inimical to him. 1--WE shall
see, however" said he, whether the
road continues in the possession of the
49, - was ClCCtcu president last
Marcn, and found an empty treasury
overdue and unpaid vouchers, and
many pressing creditors The newt
day after the election an attachment
was placed on a large portion of the
rolling stock. Several members of the
board and myself promptly came to
the relief of the company and the AT
tachments were released and sufficient
funds provided for pressing claims
Again advances were made for july in
terest. In the face of more rigid econ
omy the earnings have fallen off. owing
TO the general business depression. I'm
der normal conditions the road is
amply able to sustain itself"
AT the stockholders meeting TODAY.
Mcleod advocated the ratification of
the lease of the Norwich & Worcester.
which includes the control of the Nor
witch and New York line of steamers.
The New England company's indebted
ness amounts to $16,737, 312, including
bonds, mortgage notes and contract
liabilities, also the floating debt of
S850,000 and twenty millions of common
stock. In his address at the stock
holders meeting today Mcleod said:
Il say to you emphatically l have new
er interested myself in the securities
of your company in any way except
with the expectation of enhancing their
intrinsic value and thus indirectly the
credit of your company. I believe in
the property, as l always have, and if
this unfortunate year for all railroad
companies had not overtaken us at a
time when we were struggling to estab-
fish our credit and put the road and
rolling stock in condition to transact