The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1909-08-31
Receiver Applied For.

Application was made in Trenton Fri
day for receiver for the Burlinton
County Railway Company, in the United
States Circuit Court of New jersey, by
Alfred r.. Haig and john D. McMullin.
counsel for the trustees of the estate OF
Josiah z. BOUCHER, which is the largest
bond and stakeholder and also the largest
creditor Of the company.
Judge Rellstab issued an order that
hearing will be held September z. at
which cause may be shown why receiver
should not be appointed. as petitioned.
The application was recommended by
A. Merritt Taylor, representing large
number Of depositing bondholders. He
desired that this action be taken without
delay in order to forestall the possibility
of a similar application by adverse inter-
ests, which might result in the appoint
ment of an outside receiver, whose fees
and expenses would be heavy charge to
which all bondbolders would be subjected.
The present plan is to have the general
manager of the company, John s. Gilbert,
appointed to act as receiver. If possible,
and to receive no compensation in addition
to the salary which he now receives. 1t is
believed that Mr.. Gilbert is fully qualified
to fill the Office of receiver, and that it is
important to retain his services at the
same time in the capacity of superinten-
dent 1t is also believed that this action
will save the bondholders from what
might be very heavy charges If an outside
receiver were appointed.
The bill is a civil suit in the nature of
claim in equity and charges the insolvency
of the company, as evidenced by its in
ability to pay the interest due September
/, on its first mortgage bonds.
The complainants, as executors and
trustees, are the owners and holdeas of
$177, 600 of the first mortgage so bonds,
out of the total issue of $475, 900, and
8, SIT shares of stock, out of total of
a, 848 outstanding. The company is in
debted TO the complainants, for notes and
other loans, in the sum of $105, IT'S, cover
ing period of the last four years
The Burlington County Railway Com
pany was incorporated under New Jersey
laws August 90, 1904. with $3.50. 900 au-
thorized stock, of which $4S4, 100 is out |
standing. There is outstanding $475. 900
first mortgage 81 bonds, of an authorized
issue of $55O,OOO.
For the year ended June 80, 1909. the |
companys gross earnings were $50, 3O7 and
operating expenses $54, 435, leaving net
earnings of $1.s72. Interest and taxes
amounted to SEQ, 84S, making net deficit
for the year of $24,9 Part of this was
advanced by the compliments and forms
part of the indebtedness now due them.
The committee recently appointed to
look after the interests of certain bond |
holders held meeting in Mount Holly |
yesterday and sent notice to all the bond |
holders interested to meet at Moorestown |
on Friday afternoon of this week. The |
committee consists of l. Snowden Haines,
of Burlington; William W. Stokes, Moores-
town; and Samuel A. Atkinson, Mount |
Holly. This committee has deposited |
with 1t majority of the bonds of the com
pany, and on Friday will ask instructions
as to what proceeding they shall follow in |
the matter.