Morning journal and courier., 1894-01-01
NEW ENGLAND ROAD.
Consolidated Likely 60 Secure is b,
Koreclosure.

Consolidated Likely 90 Secure ft by
Koreclosurc.
Developments In Wall street since the
recsivsrship now point to the acquisition of
the New England by the Consolidated,
thus fulfilling the manifest destiny
which, up to McLsod's advent into the for
mer company, was considered a. sure to
come. There never was such favorable
opportunity - at present to "snsp &c up. n
II Ii believed that before January 10 the
New Haven company Will have Q complste
understanding with Receiver Plat and that
he VIII at least not manage things with q
hostile hand. And for letting Mr.. Mcleod
back, Il 10 believed that Mr.. Plat can be
counted on not 10 Join hands with the gen.
tlemsn again. Mr.. Plat 10 In the New
England company primarily to project the
interests of the United States Express CON-
pany, which has the right over that rail-
road system and gives the express CON-
pany An entrance TO Boston. II Mr.. Plat
agrees to give way to Mr.. Bart 90 psrna-
nsnt receiver 1t is not unlikely that the
New Haven company viii give the United
States Express company equally good priv
ileges or else compensate it for the loss OF
the New England contract. There have
been conferences bearing upon these ques-
lions, but not directly with Mr. Plat.
1t Ia reported In New York that the New
Haven people have made their plans for Q
foreclosure at the earliest moment that
the Law allows. which is sixty days after
default on the interest and that there
seems no reason to doubt that q dsfsult
Will be made. According to the latest
financial statement the company 10 hope
lessly insolvent and It has reached the
limit of Its borrowing capacity, 90 there 10
little danger that a hostile receiver even
would pay the January or February inter
est. The New Haven company owns over
500, 900 of the second mortgage bonds,
which may be made the bAais of the fore.
closure.
When 1t comes to the sale thsre will be
no other bidder-at least nobody that Will
pay a. much as the New Haven company.
In fact, nobody else could afford to take 1t
ct any price and guarantee to pay the in
terest on the first and second mortgage
bonds. The experience of the past two
years has shown that 1t cannot be done ex-
oept by borrowing money and increasing
the floating debt.
The first and second mortgage bonds of
the road, many of which are owned In New
Haven, are considered a. ali right. The
FIRST mortgages have dropped about per
cant. In value since the crash came, but
are considered still q safe and reliable in
vestment.
AN Oyer YEARS AGO.
The New Haven company, If necessary,
would undoubtedly do little better than
guarantee the fixed charges. Several years
ago, Il lie reported, the New Haven oompa-
ny made an offer to buy the New England
road, guaranteeing the interest and divi-
dends on the preferred stock. Stripped Of
Its floating debt by q foreclosure sale. 1t
would hardly seem that the New Eugland
road Is any less valuable than 1t was once.
1t has the best terminal In Boston, with o
large acreage that can be turned to other
purposes, and the section of the road be-
tween Boston and Willimantic, gives In
connection with the New Haven road, by
far the shortest route between New York
and Boston.
It Ia believed by some that when the
foreclosure sale comes the New England
system will be broken MP and the New
Haven company will take only the valuable
sections, leaving the rest to other buyers
or to be discontinued. But with the mo-
nopoly of the territory of Connecticut
very likely the most Insignificant road can
be made to yield fair return after II 10
reorganiEsd. The purpose IL to make .
second West Shore out of the New Eng
land.
Deans Rheumatic Pills absolutely cure rheu-
mstism and neuralgia Entirely vegetable Safe.