The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-31
FIGHTING FOR A RAILROAD.
ANIMATED LITIG1TION OYER THE
BLEECkE Err STREET LINE.
The Story Of the Railroad from 1858 Down
to the Present Time Lively Work in the
Conrta md the nniils not Vet Ended.

uon In which the Bleecker Street Railroad Is
now involved:
On Jan. 2, 1855, the Blocker Street and
Fulton Ferry Railroad Company made mort
gage TO Benedict Lewis. Jr, as trustee, TO secure
an issue OF 700 bonds Of $1,000 each, the mort
gage providing that In case OF the death OF the
trustee a new trustee might be at any time APP
pointed by the Supreme Court or a Justice
thereof on the application OF majority In
amount OF the bondholders without notice.
Benedict Lewis Jr., the trustee, died several
years ago, and In the month OF March. 1876,
n petition on behalf OF the holders OF a ma jority
OF the bonds was presented Co the Supreme
Court praying the appointment OF John ". Har-
low as trustee In the place OF said Benedict
Lewis, Jr., deceased. The petition recommends
MIR. Harlow as the choice OF a large majority OF
bondholders. and as in every respect a compe-
tent, NJ. and proper person to be appointed
trustee. GEORGE X. Sistare Joined In the petit
tion recommending Mr.. Harlow's appointment,
and such proceedings were thereafter had
that he was on the 18th Of March duly substl-
tuted aud appointed trustee.
In August last MIR. Harlow, as trustee, COM
menced an action in the Supreme Court TO fore.
close the said mortgage, on account OF default
In the payment OF the semi-annual Interest war
rants or coupons which fell due on the nrst day
OF July last. The company put In an answer in
that action, alleging In subst .ncc that the
MORTGAGE IN suit covered no property except
that which the company owned at the date OF
the mortgage, aud did not cover or include any
subsequently, acquired franchises or property.
Alter issue was Joined In said cause. a motion
was made on behalf Of the trustee before Judge
Dpnohue at eciI Term. that the company
might be required to surrender possession Of its
property 10 me trustee, or that receiver might
I've appointed with power to operate the railroad
during The pendency Of the action. Judge Dono-
hue made decision IN September last appoint.
ing j mes W. Ranncy "a receiver, several stock
and bondhodcrs having united IN requesting
the Court to appoint him In case tho Judge de-
cidcl that the appointment OF a receiver was
necessary. The trustee, Haflow,wes diss itisiled
because he was not personally appointed
receiver, and his counsel made application
to the Conr for further hearing. md while this
motion w-s still held under adysement by Judge
DonOhue. another action was commenced in
the same court by George X. Sistare, claiming
right as one OF the 9ondholders to forecosc tue
same NOR gage and alleging IN his con plant
That although he signed the petition recom-
mcndug and requesting the appointment OF
Harlow as trustee, the proceedings were irregu-
lar. because no punic notice was given Of the
Application. aud although he recommended Mr..
Harlow as NJ ana compete t person to be mp
pointed he expected his fitness would he the
subject Of judicial investigation In Sistare's &C.
tion motion was likewise made Tor the appoint
mcnt OF n receiver. The motion heard at
Special Term, before Justice DAVIS, who pro-
ccedcd. on his own motion, to consolidate the
two actions for the purpose 90 appointing a re.
ceiver, ana he mId an order IN the 2}d Of De-
ccmber last that Avian s. Southworth he a.
pointed receiver, disrecarting entirely the pre-
On tue next day an application was m ode to
Judge Davis forg stay II three weeks In appoint
mcnt OF the receiver or In couferriug upon him
power 70 take possession Of the road. THIS APP
pllcatiOn was supported by AFT layits Of tho
Presidents Of the Bleeckor street ana twenty
third street roads, and another AFFIDAVIT OF 4
large stock and bOndholder to the effect that
negotiations were pending between the two
companies which might be brought to a sucres-
fIl termination within the thr"a weeks aske
Tor, and when II was hoped would relieve the
former company from It's emharrassment
4. = frpad
by the holders Of 30 OF tAe bonds, asking for
the same DELAY.
onrc denied by Judge Davis.
The order was accordingly entered and the re-
ceiver, Mr.. southworth. VINO Is youthful indi-
viiual, with no experience In railroad matters,
without any known business capacity, was put in
possession Of the railroad and all its property
under Judge Dtvis's order.
By the order Of his appointment he was merely
required to nle an inventory Of the property and
thereafter u render monthly account Of his
receipts and expenses; but am org his first acts
was the Ming In the Clerks once aud tho inn
mediate publication IN the ncwspapsrs of "A So
called report" containing many matters ST. ce
denounced as false and libellous. lie employed
as his counsel Messrs. sullivan, hoboe, and
Fowler, who were ATTORNEYS for the plaintiff IN
the suit brought by Sistare, and not satisfied
witt having obtained quiet possession Of the
railroad and all Its property ne obtained TN Har-
lows suit an order granted by Justice ID wis
stayinC all proceedings In that suit until motion
coul be made on oehalf OF the rec aver that no
be Joined a. party defendant. That motion
was heard before Judge Barrett, who, on the l4tn
Of february. made an order that the receiver
might be made a defendant In that suit, but
should not put In any answer except merely to
set W his appointment rs "A receiver and submit
his rights To the protection o. the Court
The receiver appealed from that oder. The
order winch allowed HIM to answer gave him only
three dlvs. and provided That the Harlow suit
should not be In any manner delayed. The re-
ceiver, however. on an aihiayit OF merits sworn
To by Mr.. Fowler, one OF his attorneys. and hi.
own an ,ayii, obtained an order eN plrte from
Justice Lawrence that the receiver have ten DAYS
further time o. answer, aud STAYING all proceed
ings in the suit meanwhile. judge Lawrence,
on the following day, instantly vacated TINS or
der wnen his attention was called to II 10y attor-
ney for pltinilr, Harlow. 1hs receiver, having
put IN an answer, su useQuently served an amend-
ed answer, Ia violation II tho terms Of Jndge
Barretts order, setting up various matters which
the Court on hi, previous motion had refused no
permit and thereupon, on plaintiffs notion his
amended answer was stricken out. In the mean
time, with view To make an application to the
Court for leave to lease the railroad under a
power gwen 10y stature, large majority OF the
stockholders had signed consent, us the statute
required to the execution Of "A lease BY the com
pany' provided the sanction OF the Court could
be procured.
Inc receiver. learning tina; stockholders had
been applied to Tor tins purpose, procured an
order eX plrte entitled In both suits that the
comp my ana JACOB Sharp should snow cause
why they should not he punished for conteinpt
for soliciting such consent of the stockholders
but THIS mott n was denied, the Court holding
that the appointment u receiver OF a cOrpDIa
ton did not Ireyent tie stockhoiders from
making an effort To settle with tue creditors OF
the corporation, and get out Of trouble. rhe
this decision, which colntided with a previous
decision 10y Judge DAVIS that the Court would
consider and act upon any proposition To lease
the road II thnt should seem u be the best way
out Of the difficulty. Afterward the company
on notice 10 All parties, presented petition 10
the Court tor leave to lis Board of Directors to
take action ON proposed lease, 10 which IN l-
jOuty Of The Stockholders had assented and
wnich had been approved by more IN n three
fourths Of the bOndholders, 10 be IN ode to the
Twenty-third Street hallway Company, which
in substance undertook To assume anu pay al
npn a lkerg Al ttH I...r.
alter agreeing TO pay interest on the bonds and
motion on this petition was to have been heard
appe red In court, they were met 10y an inIunc-
stayed proceedings. This was In SUIT COM
one Mary a. Lester, together owning only 1873
shares Of stock and II was alleged IN court on
Friday last that THIS suit was really instituted
by the receiver. Coles stock was transferred to
hlm by George X. Sistare in Septemuer last, and
after the IL rlOw foreclosure SUIT was begun.
The order to show cause why the Injunction
2ith instr and on thnt day the parties were
order granted out Of, court by Justice DAVIS In
cation, ex parte STAYING once more the proceed-
should consent that the receiver should be
toned SUIT. When the motions w ere called for
n haAF aNal.f