New-York tribune., 1876-08-10
THE COURTS.
BLEECKER STREET RAILROAD LEASE.
MOTION TO ENJoIN TBE TwENTY-THIRD STREET
RAILROAD COMPANY FROM TAKING 1T.

BLEECKER STREET RAILROAD LEASE.
MOTION TO ENJoIN THE TwENTY-THIRD STREET
RAILROAD COMPANY FROM TAKING 1T.
The proposal of the Twenty third Street
Railroad Company to lease tho Bleecker Street Railroad
on the terms Of paying interest the mortgages OF the
latter company, small dividend on its stock and its
floating debt the lease being alternative for the fore
closure OF the BleecKcr Street Railroad Companys prop
ery under two suits pending in the Supreme Court has
been already published In the Supreme Court such
lease has been allowed, subject TO the approval OF its
terms by the cOar In the mean time suit has been
begun in the Court OF Common Pleas by Alexander r.
Chisholm stockholder in the Twentythird Street Rail-
way Company, enjoln that company from taking the
lease. The yesterday before Judge j. F. DAILY
in Common Pleas, Special Term, on motion for an in
junction against taking such lease pending the suit
On the part OF the plaintiff 1t claimed that the
Bleecker Street Railroad Improbable property;
that proceedings in the foreclosure suits, and the
consequent reeciyehp, showed that 1t was unable To
pay its mortgage debt Of S70O,OoO and GER
tanly not dividends stock floating debt, to he
assumed under the proposed lease by the Twcnyhird
Street Railway Company; and that it would be an
injury 10 the plaintiffs stock TO have the company sad
died with such burdeBsome lease. The plaintiffs
papers further charge that of the directors in his
company stockholders in the Bleeckcr street Rail
road Company and that their action is stimulated by
desire 10 give Nalue to the stock OF the latter company
On the other hand IL is claimed that the lease Is good
for the Twenty street Company; that the dis
asters TO the Bleecker Street Railroad Company are
merely the result Of bad management; that II
can be made TO pay, with the savings result
ing from n combined management, the rental under
lease at once by using its neglected franchises
very handsome surplus which will increase yearly It's
charged that the plaintiff Is not the bona tide owner oi
the stock on which he but that he holds 1t for the
benefit OF the Central Cross-town Railroad Company
Part o the unused franchise the Blocker Street Road
coincihent with part Of the Central Cross-io"n kall
road and this suit Che defendants claim, Is hroucht IN
of that road To prevent competition more
over the directors of the Twcu, Third street Railroad
do thing The injury Of the plaintiff they are pecu
sustain. Jacob Sharp, President Of the Twcny-tnr
Coinrauy makes offer Ia gives security Tor any
damage Chisholm may sustain by tie lease, or to my no"
the shares bought 10y plaintiff al ssh az par WIN ~ per
cent from the date OF his purchase, less dN!tchds e-
ceivcd ny him. or on the lease being perfected to siye
for his shares and interest ~ above All the III
rectoIs declare that they believe the lease VIII he adVt
agcous. Stockholders owning majuity OF the stock "i
the Twenty third Street COMPANY express Wish It'
tae lease 10 taken.
JHdgc Day ASKED If the directors had approved the
lease. Ii they had, they the propeg Judges or the
advantage OF the lcaSr and with that question Ht d'
nothing to do H. seemed To bc conceded ny thc com
plant they bad passed that question: the Only tilhE
ne could consider was whether moi they had power 10
take the lease Counsel for plaintiff argued at ehgth
that corporation could lease Iuad uncss expressly
by charter, 10y general statute empowered o
do and that neither the charter Of the Twenty y1id
empowered suCiI lease. D"f, hdins Coillir"l tIa'
the lease being IN pdri EidiG with the purposes oi
charter. they needed no statute law 70 enable tr
10 take IT, bat such aw ->liN i inund ia
the acts OF 1880. 1873 and 1870 judge Ddy res"g 81
his decision. Orlando L. Stewart appeared for Idiutln
Osborn l.. Bright iUr Gcicntabis.