Morning journal and courier. [volume] (New Haven [Conn.]) 1848-1894, 1894-01-24
THE CHARGES Are DENIED.

THE CHARGES ARE DENIED.
The New England Road Files o Bill
OF Complaint-The Road Not Oper.
ated At a Loss-suAciene Sums OF
Money Applied For Its Maintenance
deny That They Are Threatened
with Suits -Permanent Receiver
Appointed.
NEW YoRK, Jan. 23.-The New York
and New England Railroad company, to-
day, by their counsel, John Armstrong,
filed In the United States circuit court
their answer to the amended bill of COM
plant of Theodore +. Wood. They deny
that they have operated the road at Q loss
and sllege that its earnings have been sufa-
Client to pay all operating expenses and
fixed charges. They deny that they have
neglected to apply such sums - were nse-
sssary from time to time 10 the msintsnanee
of their railroad and equipment, and 10 keep
in a slate of sufficient repair, and to re-
place from time to time worn out and de-
stroyed equipment and have permitted their
railroad equipment and property 20 to de-
probate In value a. to largely increase the
cost of operation of such railroad. On the
contrary, they allege that its lines of said
railroad are in good condition and repair,
and that its equipment La also In good re-
pair and adequate and sufficient for the
They deny that the floating Indebtedness
of the company has besn constantly in
cressing, and that large amount of the
same 10 overdue.
They admit that they are not able to pay
their obligations 90 they mature and that
they have not available securities on prop
ersy. They deny that they have been
forced to postpone the payment of Its
operating expenses and vouchers for q
large amount, but allege that they have
paid such vouchers with promptness. They
deny that they are threatened with suits,
and that certain of ita creditors intend
shortly to bring suits therefor.
They admit that on or about the 9th of
December, 1898, an attachment was levied
against the rolling stock and equipment of
the defendant in an action brought against
the defendant by James Z. g. Sherwood,
New England Railroad company to recover
large sum of money, but they aver that
said attachment was not procured until sf-
ter the appointment of the receiver In the
above entitled action, and until the time
An application was made In the district of
Connecticut In an action brought also for
the appointment of receiver. They admit
q considerable portion of their floating
debt consists of balances due to railroad
companies having connection with the
New York and New England, and that
those companies are urging and pressing
for payment of their balance, but they
deny that any attachment has been threat
ened prior to the commencement of the
action referred to. For These reasons the
company demands that the action be dis
missed with costs.
JUDGE wAELAcK's OPINION FILED.
The opinion of Judge Wallace of the
United States circuit court in the case of
Theodore F. Wood vs. the New York and
New England railroad company for the sp-
pointment of receivers was hled in the
Office of the United States circuit court in
this city this afternoon. 1t reeites that
the sfidavits of holders of both common
stock and second mortgage bonds In sup
port of the motion for the appointment of
two receivers have been carefully. consider
ed, and 1t is ordered that Thomas @. Plat
of New York and Marsden j. Perry of
Providence, r. l., are appointed receivers
Of the road and of all the railroads leased
Or operated by the defendant, and of all Its
property, personal or mixed, wherever sit
usted, and that they are authorized to take
possession of the came, to manage
and operate it in q manner that
shall produce the best results. They
are also empowered to borrow
moneys for current expenses for labor and
but for no other purpose. The
order further authorizes the receivers to
use all the property as 1t has heretofore
been used, emposers them to institute
suits and to pay all current expenses. Each
receiver must file in the Office of the United
States circuit court bond-in the sum of
BOO, 600. with two sufficient sureties to be
approved by the court. All officers of the
are ordered to conform to the
orders of the receivers.
PLATT GIVES BONDS OF 500, 900.
This afternoon Thomas o. Plat, one of
he receivers of the New England road, sp-
oeared before United States Commissioner
Shields and filed his bond of 500, 900. Mr..
Plstt's sureties are Samuel Thomas and ].
J. Moore.