The New York herald., 1876-03-14
The Twenty-third Street Railroad Trying to Get
Possession Of the Bleecker Street Line.
ASKING A NINETY NINE YEARS LEASE
MI. Austin Blacks Suit Against the
Continental Bank.
Another Curious and Important
Bank Suit.

In Supreme Court Chambers yesterday, on applica-
ton OF Mr. John NJ scribner, Jr., counsel for the
Blocker Street Railroad Company, Judge Donohue
granted pdrte order directing that the receiver
OF the road Mr. A. s Southworth and all the parties
In two pending foreclosure suits who have appeared
and answered show cause on the 10th INST, why the
company should not be authorized and permitted 10
make, execute and deliver proposed lease 10 the
twenty third Street Railroad Company. In the petit
lion submitted TO the Court and which the order to
show cause was made it is stated that examination
of the receivers accounts has shown them to be de-
ceptiye and untrue that in the report of his receipts
he includes 1886 92 cash on hand when he took pos
uession and also conductors deposits and daily
ccpts of the road down to and including February 81
1870 while he omits to furnish any statement Of his
expenses later than February "a, 1876, except
item OF $l3 expended on February &C. 1876; that
Dmtting his receipts for the days for which his
penses not given his account shows only actual
cash balance February a. 1876, of $3,5ss 50;
that he claims his report to have expended 81 600
for permanent Improvements, but his accounts show
moneys dsbursed except for the ordinary operating
expenses of the railroad; that he also claims to have
paid account OF back wages and conductors de-
posits $79 36 but whatever conductors deposits he
has paid appear to have been made up by de-
posits from the conductors according to his
count and II it that the has made pay
account of wages in arrear at time of his ap
poinment IL also appears that he Is largely in arrear
the pyros for employees during the two months OF his
administration; that these facts disclose the lncom
pleeness and deceptive character OF the receivers
port and, taken In connection with the defamatory
statements against individuals connected with the
prior management of the road contained in both
ports apparently made TO thwart any efforts to
The petitioner and its railroad from its embarrassments
by means of the proposed lease to the Twenty-thrd
Street Railroad Company seem 10 indicate an intention
the part receiver deceive the Court the stock
holders and bondhoders OF your petitioner by inducing
them believe that the continuance of the receiver
In Office would result in profit and advantage to the
stockholders bondhoders and creditors greater than
could arise from the proposed lease that the receiver
has recently attended Albany before the Railroad
Committee of the Assembly and personally and by
counsel advocated the repeal of the law authorizing the
proposed lease with view as the petitioner believes
to embarrass the company and defeat Its execution Of
plan intended to secure payment OF all the just debts
Of the company as we'll as to secure punctual pay
ment OF the interest hereafter tn its bonds
and dividend to Its stockholders who hitherto have
derived no income whatever from their stock; that
with the same purpose the receiver sought to have
Jacob Sharp punished for contempt in soliciting the
assent of to such proposed lease although
the petitioner believes said receiver well knew that
such assent was only requested and obtained with
view to making the present application to the Court for
leave to execute such lease as until the assent OF ma
jorty OF stockholders should be obtained no such ap
plication could properly be made or intelli-
gently acted upon by the Court. The petition,
which Is sworn TO by John I. Conover
behalf of the company, further states that
there exists such defense on the part OF the
pany as that some of bonds are hctitous as was
alleged in the receivers amended answer, all the
bonds covered by the mortgage having been made for
good consideration and bein binding oblgatons that
during the two months tho receiver has been Office
he has paid no interest on any OF the outstanding
bords which for the two months amounts to S. 66 66;
that he has paid no rent, which, including and
for the same period, amounts to ST. 725,
nor has he paid TO the city the per cent of the
gross receipts as required by law that actual debts
have thus been incurred to the extent OF $4,000
against the balance the receivers hands; that the
road threatened with sale under execution and its
pfc6rs, directors and stockholders have at various
lines made efforts TO raise money TO extricato the
anars OF the company from embarrassment and bring
about a successful operation OF its road but OF
hese efforts have been avane; that the Twentythird
Street Company has accommodations to house all the
stock and OF both roads and at great saving OF
expense and salaries, and the only resource
left to the company to avoid protractcd
and expensive litigation judgment of FORE
closure and SALE and sacrifice OF Its property,
rights and interests appears TO be the leasing its
road to some party or corporation which will assume
and agree 10 pay the existing debts OF the company
and payment OF tho interest on Its bonds and
construct the extensions OF the road which the COM
pany has hitherto been unable TO bud that II such
tensions actually built the value OF the road and
property would DO largely increased Whereas II sold
now, the present depressed condition OF the money
Market the probabilities that II would not bring
than enough to pay the outstanding bonds leav-
ng the unsecSfed creditors wholly unprotected and
ausng TO its stockholders an absolute loss of their
tock; that the owners of more than three ourths of
he first mortgage bonds, and majority OF the stock
holders have assented TO the execution of the proposed
ease, leave execute which the present applca-
lion is made to the Court.
The conditions OF the proposed lease are that the
twenty third Street Railroad Company pay to the
Beecker Street Railroad Company the sum OF $50 O00
fash down. apply the earnings OF the up 10
list OF July 1876 both to the liquidation OF the floating
lett the Beecker Street Company. The lessee will
,lso nav an annual dividend Of one and one-haf Ger
upon the capital stock OF the Beecker
exceeding 5000 shares OF 500 EACH payable half
yearly, from the lst OF January 1873 such dividends
being payable directly to the stockholders; also the
payment semLaEnually after the LIST Of July, 1876,
upon $70O of first mortgage bonds that provided
the payment of the principal OF the bonds shall be
tended twenty years from their maturity by holders
thereof and provided the holders OF the bonds shall
accept bonds Of the Blocker Street Company dated
January l. 1885, for $l05 each and payable years
from their date IN payment of the coupons or the
e70O 600 bonds falling due July l. 1875 January 1876
and July 1876, the Twenty Street Company will
pay the principal and interest," payment To be made
he holders thereof This lease is to continue for
ainety-nine years The Twenty-third Street Company
s also to equip the road at its cost with less
forty-hve first class cars, which, with 800 horses
hall he subject to the lion of the mortgage.
Jacob Sharp, in affidavit, swears TO the
ability and purpose of the twenty third Street
Company TO carry out the conditions OF the lease that
,hey will discharge 10 the extent provided In
The lease $500 the floating debts Of the Blocker
street road and will take the road subject all
legal obligations creditors They will also guar
antoe the proposed dividend to the stockholders
will guarantee to the bondholdcrs who enter tho
arrangement proposed In the lease the due aud faith
full payment Of their coupons II Is further alleged
that the holders OF 800 out or 200 bonds have
sented and agreed to the scheme proposed In the lease
and as to the holders Of the remaining bonds the
fwentythird Street Company proposes 10 deposit in
court the amount Of interest due and payable on their
bonds be paid TO them under the direction OF the
Court and to pay the hereafter accrung
said stockholders that the Twenty third Street Com
pany have been unable TO ascertain and communicate
Nith the holders OF such remaining bonds, although
digent efforts have been made TO ascertain them, aud
that the company proposes also TO pay the reasonable
cost OF these tgaOns and the RECEIVERS ices TO be
adjusted by arrangement by order Of the Court 10
keep the road In good running order at its own cost
during the lease and provide the Beocker street drec
tors with meeting room free OF charge
MIR. BLACKS CERTIFIED CHECK.
Nearly ten years ago Mr. Austin Black who then
quite prominent banker and broker IN this city, OBJ
tained from Mr.. Ross check for $4,000 the Con.
Hnental Bank OF New York. Tho check taken to
he bank, and, as Mr. Black alleges there certified
BY Mr. Timpsou, the paying teller Of the bank. When
was ho han