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Important Railroad Case.—The woodmortgage) bondholders. ind tho holders of in-come and convertible bonds i»oed by the old New London, WlUimantic and Palmer railroad corporation, are about to bring a ^ auit in tho United States circuit court at ^ New Karen against the New London Northern K tilroad Company, for the pn*ee*.lt;don of -the road from New London to Ambenit,Maee. I It appears that five or six yeeraago the New ^ Loudon, Willimantic and Palmer railroad corporation failed roratet the interrat on it* boudi*, and passed into the hands of the true- 0tee* of the first mortgage bondholders. The trustees operated the road for two or three years without folly meeting the interest on du tho firat bonds, and by tlie action of the legislature* of Connecticut aud Maaaaehu- f setts the property passed from the hands of the trustees directly to the holders of the Ai first mortgage bonds, who were organised ^ into i new corporation, receiving its stock in lieu of their bonds. The new corporation was the New London Northern railroad | company, which has for two or three year* ^ past hold the line, free of encumbrance, andfound it profitable property, although the original stockholders did not find that the $2,000,000 invested in fiG miles of railroad paid a very Urge per cent. The parties fsuit, deny the equity of the legislation under which the new corporation was created and of the course pursued by its managers in carrying out the provisions ot the act. Eminent counsel have been retained to I prosecute the case. Benjamin R, Curtis of Boston, George T. Curtis of New York, William C. Crump of New London, wnd Jeremiah Halsey of Norwich, are at present ® employed on that aide. The Messrs. Cur* U tis hare engaged, iii the case as a specula- A lion, and are to receive a stated percentage 11 on the proceeds if anything is realised from m it, or nothing it it fails. Since the forma- ® tion of the new corporation nu additional twenty miles of road has been purchased,above named, who are no at to bring thecarrying their line np to Amherst, and its extension twenty miles further to Groat’s ol Corner, to make direct connection with the w Canadian lines, has been under contempla.lion.
Newspaper Details
Willimantic Journal
Willimantic, Connecticut, US
Thu, Oct 27, 1864
Page 3
Full Page
Clipped by
Anonymous
CT, USA 15 Dec 2021
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Willimantic Journal
