New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-09-23
OPPOSED TO FORECLOSURE
A MOVE OF STOCKHOLDERS OF THE NEW
YORK AND NORTHERN.
THEY SAY THE ROAD SHOULD NOT HAVE DE
NEUTRALITY-SUSPICIOUS. M'LEOD's HAND
SEEN IL THE PROCEEDING

SEEN IL THE PROCEEDING.
F. Ellarv Anderson appeared yesterday before
Judge Pratt of the Supreme Court, in Brooklyn,
and made a motion TO be allowed TO intervene on
behalf OF a number of stockholders OF the New
York and Northern Railroad IN a foreclosure SUI.
which was brought by the Farmers Loan anu
Trust Company. az trustees for the holders OF
$4,000 Of second mortgage bonds, upon which the
interest has not been paid. The papers when were
presented to the court by Mr.. Anderson. practically
charge that the road had need to default on the
payment OF the interest
The move was looked upon among railroad men
as part Of q pan of some Of the stockholders who
| are in svmpathv with A. A. Mcleod. the presi-
dent of the New-York and New England Railroad,
to prevent th. men who now own n majority OF the
stock carving out thei: ideas Of reorganization.
The majority OF the stock is owned by the leading
stockholders of the Ney-York Central IL was
bought last March from J. PierTont Morgan.
To a Tribune reporter Mr. Anderson said last
night:
"At tho denomination of the New-York and
Northern Railroad five years ago there were ISSUED
81 2OO0O0 OF nrst-mortgage and S2VO'U OF secohu-
mortgage bonds Of the road. The agreement was
that no interest should be paid upon the second
mortgage bonds for five years unless the cohditioh
of the road warranted it, 1t was also agreed that
a foreclosure suit should not be brought dsai'l V"e
road in case OF default until year after the irst
wears interest became due. The interest was uue
I'm lime 1892 IL amounted to NiOO Inc year
passed and the interest not PAID. linen Shor.
time ago a foreclosure suit was brought III west
chester County Many stockholders knew nothing
Of IL until the foreclosure sale was ordered Inc
papers which / presented In court to-day sho"
that there apparently no attempt 10 keep up
the interest on the bonds by those in control In the
Las, five wears the road has earned over $4,000
and liz fixed charges were only NI""v. ne SUI
pus has been used in building stations, buying rolI
Ing stock and improving the roadbei wheh a Pc.
lion of IL might have been set ASIDE 10 meet inc
interest on the mortgage bonds. , ,,., o1
ON. Of the officials OF the Newly ork 'eillal ali'
Hudson Riyer Railroad, who was seei, uy r.
norter last night greatly amused When ne
heard that the motion had been MADE 10 h,et
on the foreclosure proceeding when areauy hdu
been determined. He said; . 49,, ,u.o,1 hoo
sWhy. the New-York and Northern hintodu has
been in financial straits for some time II was III
trouble long before a majority or the STOCK was
purchased by J. Pierpont Morgan VINO eNlrc,nru ~
Turn IL over to the Manhattan Elevated hll,tpdu "a
COMPANY This company finally rriuS 10 taNr ~ ~
ON the ground that Mr. Morgan had paln 700 HuV t
for H. Before he bought what was Known az ny
Whitney interest in the road an attempt hdu
been made 10 reOrganiZe II. rms zen ulIouSn
on account Of the failure of the REORGANIZATION
| Committee TO secure a sufficient NUMBER OF con-
senfe of bondhd!ders. The Central company
bought stock OF the road because IL wanted H.
MR. AMES'S SUCCESSOR on THE l. T. BOARD