Page:Vincent F. Seyfried - The Long Island Rail Road A Comprehensive History - Vol. 1 (1961).pdf/66

 The Hempstead Branch agent who had furnished the iron to build the road, had taken in payment the company's notes, and some of the bonds to the extent of $46,000, double the amount of the notes, as collateral security. When the notes became due, the company paid a small portion and by way of settlement, Pusey promised to do certain things for the railroad, provided he became the next president. The company agreed to elect him, but it was soon discovered that his promises were not only not being fulfilled, but that he was secretly plotting to secure possession of the whole road. The directors then unseated him and elected another in his place.

Pusey, in anger, had the bonds sold and bought them in himself at on the dollar. As this paid only half of what was due him, he commenced an action for foreclosure against the company. The directors offered to pay Pusey all the debt with interest, if he would surrender the bonds lodged with him as collateral. Pusey refused and demanded $5000 as a bonus for such action. This the directors declined to pay and served an injunction on him restraining him from pressing his foreclosure suit. The contest then remained deadlocked for seven months (June 1871–December 1871).

Late in December 1871, the court which had sat on the injunction dispute, gave a verdict dissolving the injunction. The Brooklyn Trust Co., holders of the mortgage bonds, appointed on its own a receiver without seeking a court order, or even more surprising, notifying the railroad. The receiver appointed was Seaman Snediker of Hempstead, the road's first president, who immediately made arrangements to take over and notified the one and only train crew to take orders from him. The conductor at first agreed, but later made his returns as usual to Mr. Goetchius, the treasurer of the road.

On the evening of January 8, 1872 Mr. Snediker and Mr. Pusey went to Hempstead and seized the road as agents of the trust company on the advice of the bank's counsel. As the last train came into Hempstead that night, Snediker and Pusey impounded it and had the conductor arrested for embezzlement. The hapless conductor was arraigned in court and agreed to hand over three days' receipts to Snediker as agent of the bank.

Late that night, Snediker and Pusey went to sleep in one of the two coaches. Very early the next morning, E. B. Litchfield, representing the owners, and Mr. Goetchius, the treasurer, ar-