The New York herald., 1876-01-26
THE COURTS.
The Recelvership Of the BIeecker Street
Railroad Company.
MAKING THE RECEIVER A PARTY LITIGANT
Theatrical Managers at
Loggerheads.
PROGRESS OF THE BURKEGARDNER SUIT.

On the application OF Alvan s. Southworth, receiver
Of the Bleecker Street and Fulton Ferry Railroad Com
pany TO be made party defendant in the suit of John
M Harlow as trustee against the company, and also
in the suit OF stare against the company, there
long argument yesterday before Judge Barrett, IN
Supreme Court, Chambers. Mr.. Agernon s. Sullivan,
who appeared for the receiver, after recitng the
tever's allegations OF fraud, negligence and ms-
management OF the road the part of the late man
agement stated to the Court that the application was
made the ground that the receiver by the order OF
Judge Davis, was absolute receiver OF the franchises
and held possession by the specific order of The Court
that although 1t that he not by that order
joined defendant in the foreclosure suits the scope
OF the order permitted him to be admitted If necessity
were shown and Mr.. Southworth's sworn statements
before the Court TO prove that necessity that the
Court had right in equity TO join hm In tho action
and that the exercise OF thts rigm. nno,,S.ss was
statement OF facts, his sole object being TO
protect all the interests involved as ne was oounu 10
do by order OF the Court The papers alleged con-
spacy the Beecker street road IN the interests
OF Jacob Sharp and others Messrs Scrioner John
T. Devlin and Miller resisted the motion, Whlie MT
Patterson for Mr. Sistarc assented. Judge Barrett
took the papers, permitting, however, Mr southwortn
TO make further statements as 10 ihe conoIton OF tue
road and its management
In Mr. southworth's affidavit II is alleged that the
examination which he has been able 10 make OF ihe
nnars the company reveals cohditloh
OF things TO the last degree Injurious to the
rights or all the parties in interest and
combination Of systematic intrigues and corruption
and wanton cxtravagance which has for years been
uctriment the public traffic. and an injury, II not
fraud upon tho stockholders and creditors operating
solely 10 the supposed future advantage of small
Clique Of stockholders and bondholders that the com
pany entirely controlled and subveried py iacuon
Of its managers who manage 1t in the interests OF
railway combination in which the profit results TO such
managers through other companies rather than
through the defendant company that under the pres
ent management OF the said company large sums OF
money have been wrongfuny and unlawfuly expended
10 legislation, and that inc management rd 0l
extravagant In the extreme. He avers, further that
u Is very important and material to the interests OF
the railroad and the stockholders and creditors thereon
that he should joined party defendant in order
to protect their interests and that this action may be
cautiously carefully defended and which. under the
present circumstance is not that the conduct ofthe
hction is made IN that dsiDerested manner which
is necessary for The protection of the stockholders and
creditors the protection OF large property,
which, through negligence and mismanagement, has
been allowed TO deteriorate in value IL is further al
legged that this action, brought to iorecose the first
mortgage, involves, besides the mere issue as
10 the making and. executing OF the mortgage
and the bonds and the default in the pay
ment OF the interest many varied and complicated is-
suee such the validity OF the appointment OF said ar-
how, as trustee the validity OF many OF me outstanding
bonds and obligations the question, which Is material
and important one, TO what property Is covered oy
the said nrst mortgage, the Conflicting interests be.
tween the FIRST and second mortgage bondhoders the
sale Of tho franchises and the property. As TO the
amount received from such sale and s proper conduct
ihe stockholders creditors depend for the recovery
Of anything upon their stock and claims, and fair
ana proper distribution OF the iund among
numerous claimants and parties in interest
Among the other important allegations set
forth in the aihdavit Is that he believes
that the additional rights granted to the company by
The Laws of 1873 chapter 1gg have greatly increased
the value of the franchise and TO such extent that
the stockholders well bondholders and creditors
would be secured in their Investments by prudent
operation OF those additional chartered rights Ho
Further AYERS that the receipts OF the company during
his rcceivershp and dating from December p. 1873
have been fully twonyv per cent in excess OF the
receipts of the company during the same period oil the
previous year allowing for the difference In the mum
Der OF operation the road, all going TO show
as claimed the previous fraudulent management o
the affairs Of the company.