Morning journal and courier., 1894-01-25

9apR1 $allg
VIEW YORK AND NEW RNGLAND.
An Important Hearing Before Judge
Townsend In This City Yesterday
on the Appointment OF a Permanent
Receiver for This State-Attorney
Boardman Claims That the Move
For special Receivers In In tho In. |
terests OF the Consolidated Road
Claims the Road should be Allowed
to Continue with ITS Present Re-
ceivers for Six M0nths-An Amend.
ed Resolution to This Effect TO be
Heard by Judge Townsend Next
Wednesday. /
The affairs of the New York and New
England railroad were extensively aired in |
the United States district court yesterday
when the hearing on the appointment of
permanent receiver for Connecticut came
up before Judge Townsend. There was q
distinguished array of legal talent present.
Among them were Charles Loring of Bos-
ton, Charles E. Perkins of Hartford, Mr..
Boardman Of New York, of the firm of
Tracey, Boardman & Plat, Gen. Swsyne
of New York, Charles ]. Cole of Hartford,
John W. Alling of New Haven, James
Armstrong of New York and Charles E.
Gross of Hartford. Of the talent present,
Charles E. Gross of Hartford, representing
James K.O'Sherwood, receiver of the Phil
adelphia and Reading road, and attaching
creditors of the New England road in Hart
ford, and James Armstrong of New York,
appeared In favor of Mr.. Platt a. perma-
nent receiver, who was recently appointed
for New York by Judge Wallace.
The hearing continued until after
O'Clock, and late In the afternoon Attorney
Boardman of the firm Of Tracy, Boardman
& Plat suggested an unexpected agree
ment and one which was apparently salts
factory to all present.
Attorney Samuel Elder of Boston sid
that there was no need for q receiver for
the road In every state. 81 represent the
commonwealth of Massachusetts and the
general welfare of the public. The public
welfare should be considered first, that of
the stockholders is subordinate" He then
argued that the public welfare could best
be served by Q continuance of the two pres
emit receivers, n. J. Perry of Providence
and Thomas O. Platt of New York, and
that the public welfare did not demand
special receivers for Connecticut and Mas
sachusetts, and that the latter state did
not demand any. although all the terminal
facilities, all the principal Offices and the
leading executive officers are located in
Boston. 1t Is stated that there are 300
miles of the road in Connecticut, but 20
per cent. of the value of the road is in
Massachusetts,.
Mr.. Elder stated that he had petitions
from the Boston produce exchange repre-
sentipg the consolidated business interests
of that city, from the Rhode Island State
clubs, representing the principal business
interests of that state, and q number from
important business concerns in Providence,
Pawtucket and Woonsocket and other
places, advocating the retention of Mr..
ment of any other receivers except Messrs.
Perry and Platt. Special receivers, he
argued, would only complicste matters.
Attorney James Armstrong of New
York, representing the railroad corpora
| ton (New York and New Eugland), stated
that the new management came into power
| on March IA, 1898, and at that time the
road was in q hampered condition and
| that the new administration had to take
upon its shoulders the burdens and mis-
takes of the previous management. "Un-
/ USE tho low Whua8e1u6uty no b61O, 8EoAG
progress has been made, and the traffic
| has greatly increased. Mr.. Platt has con-
| siderable money invested In the road and
| is member of the present management.
He has proved himself good one. posi-
lively declare that special state receivers
are unnecessary and would impede prog
| ress."
| Attorney Boardman next took the ros-
trum and spoke substantially as follows:
In the first place we agree that, the road
should have receivers; secondly, that there
should be two receivers, Perry and PIatt,
but We do not agree with reference to
special state receivers. The head of the
present move for such specials is ex- Re
ceiver Thomas Parsons. he is working
solely in the interest of those mortgage
bondholders Drexel, Morgan & Co. and the
Consolidated road. The plan is to turn
the stock over to Drexel, Morgan & Co.
and then into the Consolidated railroad
company's hands. By looking at the
solidated road is buying up this and tina,
terminal facility with the purpose of alb
sorbing the New York and New England,
but we intend to fool them and build into
New York. This project of special state
receivers is to further the plans of the
Consolidated road.
Mr.. Plat has put out his money lavishly
ever since the new management assumed
control of the road and the condition of
the road has been materially betsered. In
| recognition of these facts he was appointed
receiver. There should be no special re.
ceivers. You are all aware how that
special receivers on the Wabash road some
time ago precipitated and complicated q
big railroad scandal.
In all fairness we should be allowed to
continue with our present receivers, Perry
and Platt, for six months go as to give ~
an opportunity to mature our plans. We
also have the right to insist that these re-
ceivers shall be allowed to spend current
receipts for current expenses and not to
borrow except where absolutely necessary
| with the six months limit for the maturity
of our plans.
This proposition met with universal CD
proval, and the attorneys present finally
| agreed to submit such an amended Iesolu-
ton to Judge Townsend. The latter fixed
the hearing for the motion on next
Wednesday afternoon at 2 O'Clock, sswhen, i"
he said, 81 shall decide this question of
special receiver for Connecticut" This
ended the matter for the day.
At the early afternoon session Charles j..
Cole of Hartford, representing the Etna
ex- Governor Morgan 6. Buckley, was an
interested spectator, was the first speaker.
He said he appeared in the interest of sew
| ersl corporations and individuals who de-
sired receiver appointed in this state for
| the New England road who has resident
| of this state. He said he held afidavits
representing $50, 900 of the first and Sec
| ond mortgage bonds, and he believed their
| wishes should be needed.
The appointment, he said. was q matter
of great Importance to the state, whose
franchises the road held, and which was
being operated very largely in the state. It
touches not only the dignity of the state,
but citizens generally. Hs said:
| II don't desire to DISCUSS the question at
| the present time, but I admit that the state
and Its citizens should be considered in &C.
lecting . permanent receiver: The road
has three hundred miles Of road in Con-
necticut which 1t operates. What man
knows best the interests herei It not only
affects the dignity of this state, but its cit.
liens who hold these securities, and what