New Britain herald., 1916-08-23
|rectors Said to Have
 Agreed to Friendly Suit in ROrder to Unravel Financial
 |Tangle - Road Enjoying Most Prosperous Period

M Boston and Maine railroad was Fed for in 8 bill in equity filed in M United States district court late
 terday.
 < his action, in which the Intercon- #ntal rubber company of New Jer- M which holds a note of the road @ $51, 1000, appears as the petitioner,
 F taken with the consent of all the Nectors of the Boston and Maine. 1t #understood. No official statement # this phase of the matter could be gained, but one of the directors said #was friendly proceeding, intended N simplify the task of strengthening
 M the roads financial tangle.
 Nrhe board of directors. which for
 p years has been trying to effect M Reorganization of the system, was Msession to consider it's procedure in
 nectton with $13,5O0,000 of in-
 btedness falling due the 31st. Most
 hese obligations had been extended
 Sm time to time, while awaiting the @come of plans for reorganization.
 Fer g. long meeting, the directors de- s360 IuSy HUI I6dCu6d I19 Suu Ol @ir rope" in the words of one of Fir number, and issued the follow & statement, through President J. $ Hustis:-
 @sIn the opinion of the directors of sb Boston and Maine railroad. 1t is #xpedient to attempt a further re- Swal of the notes falling due August A creditors petition for @ receiver ss been filed in the United States dis Yet court and in due time the Boston Nd Maine will file it's answer there Will Reply Soon.
 NThis answer, it was intimated would made within the week. WhethAr Sy incidental action would develop #antime was uncertain, although in Aations were not lacking last night ARt certain of the leased lines inter Els had virtually decided to contest Sproposal of receivership.
 NThe IeasI-l lines, notably the Con- #rd and Montreal and the Connecti- Mt river railroads, have been strong S opposed to a plan for reorga11iza- 3n to which most of the other ele- sbnts in the Boston and Maine sys- #n had assented. This plan would Eve made the system a single cor Hrate entity, wiping out existing 8ataI charges, some of which are Stimed to be excessive. Under @eeiyership such leases may be Soken by order of the court. Npresident Hustis who left for Wash Hgton immediately after the direc- Ars' meeting, refused to ampfify his Nief formal announcement. One of Ne directors, however, said the de- Aion not to ask for further exten- abn of the notes was reached "be- Ause the roads condition is such at it cannot pay it's indebtedness Ed because of the probability that would be covered with attachments Hhich would tie up it's business to He detriment of all creditors"
 Neither this director nor Boyd Il bnes, the attorney who filed the bill aould say why it was brought by a seditor whose note still has nine day' mature. Nor would Jones say neither the directors of the road had srior knowledge of his action, al bough he had visited the directors bonn while they were in session. The text of the bill could not b' armed last night, as the attorney |ersonalIy fmpounded the papers i'm IediateIy after he had caused the Bll to be made a matter of record Prosperous But Embarrassed. The Boston and Maine's f1nanc1a roubIes have reached a climax at { me when the road is enjoying th'
 reatest prosperity in it's history Ea rningsa were never so great, yet the ompany. according to its officials, il kithout credit sufficient to discharg' Es floating indebtedness of $13,5Oo' loo. This amount has been accumu hting several years on account or tn Inability of the road to pay otf It |hort-tern notes, which have pee attended as. often as they became que Payment on some of these notes ha been deferred seven times.
 As there is approximately SS,ooo, boo cash in the roads treasury, W1t further large earnings 1nmedlateI In prospect, the road might care 10 It's obligations under present cond1 Onfr{on If soma TajlrOa,