The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1894-08-23
RECEIVER FOR SOUTH JERSEY.
The Road, However, Is Doing n Good
ENTHUSIASTICALLY Suit. Il

SpeciUl 10 tHe Jersey Guy AGUS-
TRENTON, Aug. %, 1S94.-Judge Dali
las of the United States Circuit Court
yesterday heard an application for the
appointment of receiver for the South
Jersey Railroad Company. The COM
plaihant was the Harlan & Hollings-
worth Company, Wilmington, and there
were present as counsel Colonel w. l..
Potter of Bridgeton, and Joseph L. Doran
of Philadelphia. In accordance with
their suggestion, Francis 1. Gowen of
Philadelphia was appointed receiver.
The proceeding was a friendly one. n
grew out of the desire of the manage
ment and the security holders to prevent
the appointment of a receiver hostile to
their interests. the embarrassed condi-,
ton of the company rendering it GER
tain that recourse to the courts could
not be avoided. The liabilities of the
company, exclusive of its bonded indebt-
edness, amount only to about $35, 900, but
the immediate ground for the receiver
ship was its inability to pay some $l2,00 70
owing to a force of Italian workman en-
ployed in track laying. #
1t had been hoped by the management
hat the threatening trouble could be
averted by means of the sale of a por-
ton of the $3.50, 900 bonds in treasury of
the South Jersey Company, but negotia-
tions to that end, which at one time
promised to result successfully, fell
through about ten days ago. On Sat
urday the Italians threatened to strike if
the money due them was not paid with
in a week, and the inability of the man
agement to raise the necessary funds
compelled them to seek a receivership.
Vice President Logan M. Bullitt, upon
whose SHOULDERS has rested the lions
share of the cares of management, stated
yesterday that the appointment of Mr..
Gowen as receiver was highly satisfac-
tory to the management, to the security
holders and to the largest creditors. Mr..
Bullitt said that he believed the en-
barrassment of the company would prove
only temporary, and that the duration
of the receivership would be only a mat
ter of months.
THE business of the road said Mr..
Bullitt, SIS constantly increasing, n
from Sea Isle City to Cape May earlier
in the season, it would, beyond doubt,
be very much greater than it is today.
In July we carried 1000 passengers, and
net earnings for those two months will
he about IL 5000. While travel is, of
course, much heavier in the summer
months, our gross earnings for the whole
year will amount to not less h $780,
coo, and $125, 900 will cover all expenses
and fixed charges, leaving a surplus of
about $25, 900 over charges.
There are in the treasury about $780,
900 of 8 per cent. bonds in addition to the
100000 bonds outstanding, the greater
part of which have been pledged as Sc
curity for loans l hardly think that
reorganization will be necessary, as l
believe that the road will work out it's
own salvation under the receivership.
The appointment of Mr.. Gowen as re-
ceiver is very e atifying to all the par
ties in interest, and l feel confident that
under his management it will not be
to its owners The report that the com-
pany will pass into different hands when
the ~receivership terminates. and that
there will be a change in the manage
ment, is erroneous.'