New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-18
Trustees Say They Cannot
Sell N. II. Holdings in
Time Allotted.
WANT PERIOD COURT
GRANTED EXTENDED
Low Prices of Stocks and
Wartime Conditions Are
Given as Cause.

Selling Boston & Maine stock at an
seceptable price. even under the COM
pulsion of a Federal decree has
proved an irksome task to the
trustees of the Boston & Maine. 80
they fled notice in the United States
District Court yesterday of an apph-
cation TO be made next Thursday 10
extend the time granted by the De
partment Of Justice to dispose oil 'he
Roston & Maine holdings OF the New
Haven. Argument on the motion VIII
be heard on that day
II would be impossible, the trustees
declare, to sell the shares or any por-
ton of them, on terms which in their
Judgment should be accepted, by
January 1, 1917, the time limit agreed
upon.
Sale Ordered by January l..
The trustees, under the decree OF
October IT. 1914. were directed to use
their best efforts TO complete the sale
of said shares before January l,
1917" and to sell any of the shares
remaining unsold sixty days before
that date by public auction within the
sixty days. The arguments advanced
for the inability of the trustees TO
sell the properties are;
"The decree was entered on OCTOBER
II. 1914, at which time, owing to the
European war, all stock exchanges
were closed, the financial situation OF
the world was disturbed to an un-
precedented extent, the business OF
the railroads was much more reduced
il was impossible to forecast the
future with any confidence, and there
was no market for railroad securities
"The Boston and Maine has a large
floating debt which il was wholly un-
able 10 pay, and from the date OF the
decree until now a receivershlp OF the
property has been prevented only be-
cause the creditors have been willing
70 extend the time of payment, which
has been done three times.
Reorganization Pending.
at has always been uncertain wheth-
Glr fnlS tAltHSlOll MOAAN bt : "4aNNN -
whether the property can be kept out
of a receivership is dependent now
upon a successful conclusion OF nego-
tiations for the reorganization of the
property which are now pending.
The Boston and Maine is the lessee
of various other railroads which to-
gether constitute its system, and II
receivership were 70 occur these rail-
roads would be in a position TO sepa-
rate themselves from the Boston &
Maine and TO operate as independent,
and, TO a certain extent, as competing
lines; and a proper reorganization Of
the system can only be effected by an
agreement between the Boston & Maine
and these leased lines, whereby their
relation TO the property will be so
changed as TO give the Boston & Maine
the credit it needs and must have to
deal successfully with its large debt
and TO raise the money which is i'm
peratively required to put its road in
proper condition to transact its bust
ness economically and safely.
Negotiations for such a reorganiza-
ton have been prosecuted actively
ever since the trustees took charge Of
the property, but as yet without def
mite result. For while the majority OF
these companies have agreed to the
terms of the proposed adjustment, two
of them are still hesitating. and until
some agreement with them is reached
the whole reorganization of the prop
erty is suspended.
Have Delayed Sale.
"These uncertainties as to the future
of the company have prevented the
trustees from making any sale of the
large number Of shares in their hands
on any adequate terms. They have
therefore delayed until the present
time. As a result it would be impos-
sible within the period remaining to
sell the shares to any fair advantage,
since under the terms of the decree
if they do not succeed in selling them
at private sale within two months from
September ! they must then be sold at
public auction. II is clear with the
prospect of such an auction before
them no one is likely to purchase the
shares at private sale, since at an
auction so large a block of stock would
invariably be sold very cheap.