The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-10-15
THE ClB COMPANr-y COLLAPSE
Mr.. Townshcnd Accuses Mr.. Knvonagb, and
the Enterprise Abandoned.

John Townshcnd, chairman Of a commit
tee Of the Manhattan CAB Company. recently in
formed Frank Kavanagh who has been active
in organizing the enterprise. that charges
would he preferred against him in n meeting on
Saturday. Five Of the sixteen members Of tho
committee attended the meeting. Mr.. Town
shcnd said that he had reason for suspoctng
that kavanngh was an impostor; that he had
obloincdmuney from various persons 10y prom
ising them employment by the company: that
he had cashcd a draft ut the First National
Bank that had been dshonored: and that sew
cral judgments had been entered against him.
Mr.. TownshcnI said also that he believed the
instruments that authorized Kayanagh to draw
on Lord Rosebury and the Earl of Buchan were
fictitious. Mr.. Prask of London. whose corre-
spondent kavanagh pretended to be. had telc-
graphod message to this country as follows :
= Iluv" nothing TO do with havnnagh." Mr..
Townshcnd added that kavanagh had lyngly
said tho English shareholders had paid ten per
cent. ol their subs rriptions.
, hnyanagh replied to the charges by saying
mat h" mad acted in good faith. and meant to
have the company succeed, lie proposed 10
carry on, to the letter the instructions he had
received from the English capitalists. Hc ex-
pecied money. and the reason why his drafts had
been dlshonured was that the English stock T.
holders refused TO pay. anything until 500
shares lad been subscribed for by Americans.
eAch ten per cent. to- b. paid up. and the English
people offered to take 500 shares II the Ameri-
ems took 500. He had collected ten per cent. on
3l5 shares here. he said. ard offered Of the re-
naming lj5 shares 1870 tn Simon Hamburger,
- To Wood Brothers. ana 3 tp Augustus Fisher.
II" had boon offered the 81 $50 ten per cent.
Int refused to take ID until ne received al .OO0
from tn English stockholders.
The committed would not take these offcrs for
stock. because tho money did not accompany
them.
Mr.. Townshcnd proposed that the orcaniza-
ton hc abandoned. and those who had sub
s'rined he directed to Withdraw their deposits.
II WINS go voted.
Nj Knyanach snid last evening. that he came
TO New York in May for tho purpose Of forming
new cab company. briusing with him letters
rom Earl Buohan and others; also n letter II
credit Tor sljOu00. Rocks for subscription
wsre opened in White, Morris 4 Co. Office. and
l.Nlp shares were taken Immediately. He drew
ON London for $4,000. so a. 10 pay the ten per
cent. deposit on the English subscription; but
IN order came back not ~ pay until Americans
had subscribed and paid deposit on 500 shares.
IN juno, 1853. shares werr applied for. but the
English stockholders would not pay the deposit
until 'he whole 800 were taken. which WIS done
ON Saturday Mr.. kavanagh intimatcs that the
trouble with the American stockholders j. that
good positions are desired. which he cannot
Promise. Ha also SAYS that he came to New
York TO give the city cheap cabs and shall stay
TIL u" does II. OF his debts he says he has paid
out 100000 while hero. and owes 50 900 VII ich
may bee settled on adjustment Of accounts. H.
threatens 10 tnke legal stops to-day TO prevent
subscribers from Withdrawing their deposits
claiming that the action of the five members of
the committee on SATURDAY was Illegal.