New Britain herald., 1916-08-24
Boston Stockholders An nounce They Will Contest Desire of Directors From the Drop of the Hat to the Last Ditch"

Boston, Aug 24-In answer to the petition for a receiver for the Boston and Maine railroad, which was filed in the United States district court Tues day, the road yesterday announced It's consent to an order appointing re- ceiver and averred that matters con- tained in the bill of complaint are true. The answer was filed late yes- terday in the office of the clerk of courts by George l.. Mayberry, coun- sel for the railroad.
 That receivership roceedings would be sharply contested, however, was in dicatei in a statement issued last night by Conrad w. Crooker, junior counsel for the Boston minority stock holders association claiming to rep resent 800 out of approximately 63,- 900 shares, who said:-
 we shall fight any such petition from the drop of the hat to the last ditch There is no excuse for the di- rertors' refusal to make some effort to secure renewal of credit. The ap- plication for receivership and a re- ceivership are two quite different things and the proceedings will give us a splendid opportunity to present our case"
 The petition for a receivership filed by the Intercontinental rubber com pany of Jersey City, N J., which holds $51,000 of the outstanding notes of the road, stated that the company's credit is so poor that it cannot issue D Ids at a reasonable price and that it is unable to raise money on short term notes. The bill claims that out oF+ gating $13,3O6,O60 cannot be paid when they fall due the 31st.
 The roads answer is brief: Now comes the above named defendant as for answer to the bill of complaint" it says, "and respectfully ayers that the matters and things stated in said bill of complaint are true. Where fore, the defendant submits it's rights to the court and consents to an order appointing a receiver as prayed for"
 It was not known last night what date would be set for hearing. Judge States district court, is spending a vacation at Mt. Kineo, Me. At the court office it was said that it was possible the papers would be present ed to him within a day or two, and that the time for a hearing would be made known soon after that
 Temporary Receiver Sought.
 The immediate appointment of temporary receiver for the Boston and Maine to be followed soon as possible by a permanent receiver was asked for in the bill in equity filed Tuesday, it became known yesterday, when the papers were made ma tier nf rS in, Ctot ictr ri ct court at Boston for the first time. Full power and authority to operate all the railroads and properties owned and controlled by the Boston and Maine, including it's score of leased lines, would be vested in, the receiver If the prayer of the petitioner is granted, with the especial stipulation that cred itors be restrained from interfering with the receivers in any way. In this connection close followers 1 of the situation pointed out that ! court decree fulfilling those requests 1 would bind closely to the Boston and | Maine the control of lines under 1 lease and make impossible any in dependent action by their officials. It was the objection of certain leased l line interests which made impossible l the reorganization of the road with out the receivership move and sug- gesttons have been made that they would oppose the appointment of a receivership.
 l AS a reason for the proposed re- l ceivership the petitioner, the Inter continental rubber company, which holds a note of the road for S51OOO, due the 31st, states that the company's | credit is so poor it cannot issue bonds | at a reaSOna ble price and that it is
 unable to raise money on short term
 notes. Outstanding notes Of the com
 pany to an extent of S133OG,OO0 ac-
 cording to the bill, cannot be paid
 when they fall due the 31st, the date
 on which payment will be demanded
 also on notes by the Vermont Valley
 railroad company amounting to $2-
 800, ,OO0 indorsed by the Boston and
 Maine.
 '"The roads inability to make pay
 ments on the notes and to procure
 extensions again will result in a mul-
 tiplicity of suits," the bill states, "and
 a race of diligence to secure attach
 erty owned by the company. If this
 condition were allowed to go on, 1t
 would be to the great loss of the
 bondholders, whose notes are not due
 for many years, and whose only rem | edy is receiVership."