The New York herald., 1876-01-27
THE DLEECKER STREET RAILROAD.
Receiver Southworth's Report and
Monthly Statement.
NISAANAGENEST, ROBBERY AND CORRUPTION.
A Novel Way to Organize
Corporations.
Condensed History of Street Rail-
road Monopolies.

Mr. Alvan s southworlh. receiver OF the Bleecier
Street Railroad yesterday filed his report accompanied
by monthly exhibit in the County Clerks Office He
prciaced this report by stating that in his official
pacyhe construed the order of the Court in appointing
him that he should receive all of the
franchises Of corporation from the dlsuse insolvency
and INSCRIPTIONS hands into which they had fallen,
not only for the benefit Of the parties In interest but
also for the public good. AS to President Conover's
action the receiver reports
That John T. Conoyer, since 1866 the President of
the corporation has permitted the road TO become
disgrace and byword IN the community using 1t to
aggrandlze his relations, who by corrupt appro
prated largely OF its earnings and contributed largely
to its decay and insolvency; that said Conovor, as
shown by the books, has never paid dollar for his
stock bonds although individually representing
Of the largest interests in the corporations that he has
never paid dollar 70 tho road In any way
far as he has indorsed promssory notes of the
pany payable at the Broadway Bank. and which notes
were in progression OF their maturity redeemed by
other notes at the Broadway Bank, tho Bleecker
interest; that said Conovcr did at other times make
various loans known as "call loans" which were
satisfied on demand.
VICTIMS or THE MIsMASAGEMEST
This receiver further declares that II appears from
the records and books of this company that the said
Conover, Sharp, and othors associated with them in
the management of this road since the date of its
ganzaton have never invested any money in paw
men for their stocks and bonds hayo they in any
way contributed any moneys TO the support and opera
ton OF the road, but have, tho contrary, drawn
largely on It's revenues, as shown by tho exhibit C."
Tins OF this long duration OF fraud and msmanagement
have been those who have purchased interests at
second hand or have become voluntary creditors
THE RING ELEMENTS.
Tho receiver further declares that among the cor
porators were Hugh Smith, fugitive from justice,
Peter b. Sweeny, residing In outiawry, and others
who seem 10 have been connected with the pernicous
legislation of which the recent municipal corruption
legitimate ofishoot
That the receiver has discovered that not only the
Twentythrd Street Railroad and the Christopher Street
and Tenth Street Railroads over both OF which Jacob
Sharp holds and wieds powerful influence
gagged in attempts to vtate the franchises of this
pany, but that in addition the Central Crosstown Rail
road also wishes TO destroy the franchises OF this
pany for its and selfish purposes And the
ceivor further declares that during the summer OF
1875 this road caused tracks 10 be ad to Christopher
street ferry in with the powers OF tho Laws
of 1873 chapter 199 that said tracks were Immediately
torn up by order of the Central Crosstown road but
that the Court subsequently required said tracks TO be
again laid but that they were not again laid this
ceiver is informed, in conformity with bargain made
between the parties interested
The report then goes TO speculate tho value
of the franchises which had been operated upon
together with their capacity and dsmsses this branch
of the discussion by sayirg:-
During this recevership (since December 27, 1870
the surplus lawful disbursements has not only
been sufficient to pay the interest on the bonds but
fair dividend the stock-a clear proof Of the past
reckless and fraudulent management OF the road.
Mr. southworth then proceeds to detail telling
exhibit of general msmanagement oh the part Of tho
company peculaton being rife from the Office and in
tcrnal arrangements down to lower subordinates,
and continues by giving history of
STOCKS ASD roSDs WERE GIVEN AWAY.
He says the original grant of the Bleecker Street and
Fulton Ferry Railroad Company was given in 1860 TO
Charles ven asESnsc s9 JOIN Kennedy James Hunt
Charles G. Clarke, John Fox, William Kavonstyne,
and hy and pne
the road in operation and continued TO control 1t and
its franchises and privileges until 1885, when this COM
pany organized with capital of 5000 o0o in stock
S700 600 in bonds 1t appears from the books that
all the stock and $434 COO of the bonds given
away and issued without moneyed considera-
book and stock and bond ledgers dis
closes that this gra,ultous distribution was
made according to mathematical proportion as
shown by the minutes and other records that is to say
that the corpostors each and severay held by assign
ment otherwise certain proportions in the original
grant, by virtue Of VIII ch they wero given such fac-
tons of the stock and bond issues as would indemnify
them for such interests and that there was no dscrmi
nation made in the distribution the stock and
bonds, all going TO show that the bonds were made to
constitute consideration.
The report further goes to prove that through tho
negligence and colluson charged generally by tho
cever the valuable franchises granted by the Legislature
have become subject to forfeiture but that the receiver
can substantiate unassailablc testimony that T.
IL Conkng is engaged in an effort to render void the
franchise of the company for the purpose of obtaining
the same rights for the Central Cross Town Company
Mr. Southworth then proceeds with exhibit OF the
present condition Of the road under his management.
and next goes into an interesting subject as to the
METHOD OF DIVIDING BONDS
He finds from tho minutes that twenty persons
agreed in writing take the number OF shares set op-
pose their respective names, shown by the schedule
making up the total capital stock of the company that
although these subscribers received this stock n Its
totality, monoyed consideration was over paid for
the same that the distribution Of stock and bonds
(betwecn which in the distribution there was no dis
tincton in their relative proporhonsl was as follows:
To every full share OF the original twelve shares tho
twelve grantees named in the act OF the Legislature OF
1850 there allotment of $50 shares of stock OF
sl00 each, aud thirty-sx bonds Of 81 COO cach and
these shares fractions of them distributed among
certain parties according TO method still undc.er-
mned The books show that only se4 900 in cash was
ever paid the remaining portion OF the 1856 O00
being sizes, in the purchased Knickcr
booker Stage Company, $4,000 IN hypothecated bonas
and 81, 900 paid for negotiation Of the bonds
CONCLUSIONS.
The receiver in conclusion states that the principal
facts developed by his Investigation and incumbency
First-rhat tho Bleeckcr Street and Fulton Ferry
Railroad Company owns Of the most valuable fan
chscs IN the city
.Second-That for years It has been prcyed upon by
evil minded and INSCRIPTIONS men, with view to de-
press Its value and then lease otherwise acquire s
chartered rights
Taird-That one months operation Of the road
proved that IL can nay interest on the bonds dVoend
the stock and creditaby meet all liberal current eX
penses
FOuTN-lndl
even more valuable than the original grant
Fffh-That II carefully managed the road would DO
one Of the arteries of the city, for down AMI up
town travel and a GOOD investment tor capitalists
That said receiver, in making this his report AYERS
n summary and condensation Of tho iacts hereinoe-
fore detailed that the Blecckcr Street and Fulton
Ferry Railroad Company has been and IS preycd upon
by rival lines wishing dcsoil u OF It's franchises IN
order 10 convert them TO their own pront; that
during the past years 1t has been pundered by Us
officers aud employees that its moneys have been ap-
propriaed for corrupt purposes u lessaons 'na' rs
,.f,f has
bubble: that lis cars have been filthy. its running timc
irregular and ts equipment deplorabiy bad and that
narties cornizant OF these facts add VINO have bcc in
strumenta in producing this condition OF things, havo
been and are cndcavoring TO secure these valuable
franchiscs OF which your receiver Is the lawful cus-
todian for purposes which would defeat tho specific
order OF the Court
In making this report to the Court tho receiver fcts
constrained to add that he has with the partial ma
torini placed at his disposition for investigation