New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-10-21
4 c0ssoLID4TfoY OPPOSED.
TWO EAST RIVER STEAMSHIP LINES.

TWO EAST RIVER STEAMSHIP LINES.
! cu,rC., Tpar THE rORNATioN OLA CONSOLIDATED
COMPANY IS UNwIsE AND ILLEGAL-J0iNiNG \
DAxKEUPr CONCERN 10 ONE THAT IS PROSPER
Ors.
Thc directors of two rival corporations, with
ont Il consent OF the stockholders and IT - alleged un-
avfily have signed articles OF agreement consolidating
the c,urpurics aEd forming a new organization Great
efforts have been made TO keep the matter secret but IL
has come 10 the knowledge Of Of the stochhodcFa
and one Of them J. n. Watson who until recently
secretary older company has had papers drawn
up aad afdayits prepared which he will submit to tie
Supreme Court in an application for Injunction re-
stianirg the directors from carrying out their purpose
The facts Of the case are stated to be rs follows:
The Harlem and Eew-Y0-k Navigation Company was
established in 1880, with capital Of Slo0'OOO
to run n line Of fast steamboats, from Peck
slip adjacent point down town TO different
places along the East and Harlem Rivers having the
upper terminus at the Harlem Bridge The company
was q from the start. The shares were popular
zed their par value being only $40 EACH and the boats
were well patronzed. The business continued to DO
profitable steadily to 1876. WHEN there surplus OF
1000 earned over aud above the original amount in
vested the enterprise. In that year the M0rrlsana
Steamboat Company, opposition line, organized
to run boats between Fulton Ferry and Mott Haven and
10 stop al intermediate landings The traffic could not
support lines and the old company was only able 10
nav its expenses The now company got into debt and
according the made Jan l, 1876, to the tax
commissioners, all the capital stock has been sunk and
is worthless The three boats Morrisania Harlem and
Shadyside have mortgage upon them Of $4,000
These boats are tho only property which the com
pany owns and IL il alleged bankrupt This oppo
had produced effect upon the old hne' ont
rs il had surplus OF $4,000 from which ~ draw on
Jan l. 1876. assets equivalent 10 It's iabtles
and The company had paid all is obligations. For long
] s1as taf tirtsTfa
new Inc the old line absorb 1t, or consolidate the
two but the directors Of the old company refused NJ
tine last election, however. there change In the III
rtctorshp. aud persons came into charge ~ AZ
serted that there were some irregular transfers OF stock
and that votes fictitious sIarrs. D. ~ Wal
son said 10 TRIBUNE reporter Yesterday that he had
heard John Iowerv director to Roswell O. RolSton
President OF tho Farmers Loan and Trust Company jnst
before the last election that he wanted to transfer i've
Shares Of stock him In order 10 enable Mr. Rolfoh 70
vote NJ tine election that the transfer was made without
consideration, and That Mr. Rolson was tborenpoh
elected q director. II charged that the men VINO
/ brought about The changes working for tht
new cornpany and indirectly for Che Now-Haven Rail
rosd Compnpv which for some time had been endlayor
us the MOrsuls line Tor tr caFrAlL ol p's
.tuIur Ias been reached between the directors ~ me
two companies In opposition - tie views 81 hc siocA
holder. of the old liIn The Oi the Cpipaci are
/ tlat the two companies shall b. consolidated aHet
NOV. !, the compact 90 run Tor NE year. ne upi
h,g'',I' T ~ IN h., ,i.lcrs,J with Tho gross r.
tSlod tt'-' Sl t ~ -, r,'ivcr Who sb1li divide
theIn cGuny bet the two companies. The contract
can be- terminated 10y either parry giving one years
notice The COMPANY 0, Co ruu tour y t- ~ WINTER
aud boat, G sumner Tie person o Hci rs ierci.eI
is Thomas g. Iappcn, oi the commissioners 81 the
new Courthouse and President Of the Harlem SAVINGS
I'm inf. oppIrntnn for an Injunction j v Watson
alleges that the Bct ~ INCORPORATION OF the Harlem ana
Nca-Iork NIyI -ation Company forbade 90" aIc,0is
irom combining Tor any Pu Po'. .' 80 H.,
combination made IN opposition to ihe Wehc- on l
stock elders ana % thr manifest injury ana dettnn,Hi
asserts De- 30 shares 81 the stock valued AZ
rira Company is i,spv-u and. unless the cou-olida
iiOn Is effected. stop running, when the on
! .faubaais. he sylvan DcI sylvan Grove. sylvan
stream ami ivan Glen, besides valuable dock property
at Oue-uudrcd audi tnistitti-L, VINE Tie Moiti7mt
oini!uS UI ~ o,63 na6 t,r ,l,roJ NH yIIl,s linz
! consolidation he aver. VIII make his stock vauer-s
aud Is the fruit of conspiracy against the interest Oh
the stockholders lie therefore prays that ihe directors
net, and perpruay crloiEcd from proceeding under
a fEIbC reporter yesterday visited the Registers
oirr and among thc mort-ag-. found TIA; the MORRIS
anil, Steamboat COMPANY, ou jan H. 1873, hJd given
cLairl inortIee ON turlr steamboats, bru amin g.
Arnold aub john j. Crane, uurar-- lu 0f.uit sac li5
men! %. $4,000 OF bonis issued Dog thr company. rhc
mortgage bad boon renewed fy - 1870 AID on tiic
pucs OF 30 was lutol-ed Toe condition oi alitiis a- re
quIl,a hy law. The Endorsement Nda a- i"."Ns: hr
statement, of c interest of tLc trustees ON Feb 80, 1876
Tltiy-lip, thousand DOL - hive been issued, >il aud
out4IanuiDl While ihc whole amount Do uhii'n
There ait 5000 held py different paroles "1 security
for money .su,d them o. the cOmpuui.-. The amount
/ due them 3, about sl1,IuV.'
one OF tine police justice. ~ The city, WHO pIcsl
drii of che o.u cuuiuy from DO. formation m. Jtu. J.
I-Tf said that Z! official record meant TINT the hdeb
odn.~- of tir NorIstuIa Conn any was ~ iu.lu"-:
Original cirSal ..---.... ---.-----.-s- ~ uu9
Bonds issued and unpaid ........-....- 5000
IudcD;c'Iuess oa 52i'ot security .-...-.-. 1900
.ro,.,.,t,.,i.. sls4 800
A.ssts si.rcr boat. valued ,j.......... go. 5000
Leaving n drarrucy Of ...-............... $4,000
To declared Itt tl. Ola IlEc Hut rn.pslr.h,d II
bad h0W.y,ra uuus,i IIdrutcdr-s 90 vaJuto secured
alone anon tic real estate Hi DucIuA.r ~ lHu -iulrurth
10. for winch the cDInpauy hJd h"cu OhcTrd double that
sum- There wa- mortgage on ts boats tie scd
thc ouIou That the proposed scheme oi consolidation
/ was Infamous.
/ yor said Chat tAc Harlem Steamboat Company Has
formed She l-,G, under the legislative act of
the year 1854, which provided t.at uO combinations
present arrangement understanding violated clearly
tho provisions uf thc charter. lie Had aao tt accord
ing 30 The statute the arrangements uow made were VII
tgIy q cOpartucIrhp. the profits % be- divided
brttccn tbc companies, and there nothing tO pre-
vent % creditor uf TIE bankrupt MniI-iuia line from
attaching the money in tine hands OF Sir Tapdn part
at ., should ne paid % HIM.
one ut the directors Of the Morrstuo line declared
tLat consolidation would benefit both lines. ana with
Out b neither would br able 90 make money.
CARL SCHCEZ ~ BROOhLYN