The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-17
RAPID TRANSIT.

SUIT OF THE NEW ENGLAND IRON COMPANY
AGAINST THE GILBERT ELEvArEs RAILWAY
DAMAGES LAID Ar SEVERAL Mill ION Doll
LARS
Alter the friends OF rapid transit had succeeded IN
staying tue lido OF oppostion In the Legislature aud
alter the Court OF Appeals had reversed the oecsops
oil judges of inferior courts hostile 10 tho scheme II
was thought that there would no further stacle
thrown IN the way. Tnis hope seems TO have been
Elusive. suit has just been commenced IN the
courts tho lna effect Of which It VIII be mpos sibie
OF course present predict Tho act on ia brought
In tina Superior Court by the New England Iron Com
pany against tho Gilbert Elevated Railway ana tho
New York Loan and Improvement Company.
THE COMPLAINT.
Tho complaint, which Is omewhat yolu minous be.
gins by rccing the Incorporation OF both the plaintiff
and the defendants and then goes state that in
March. 1873. an agreement made between the two
for the furnishing Of the materials ana building Of
the Gilbert Elevated road. Under this agreement
work to begin the President should
notify the company that thirty per cent OF tho
capital subscribed for had been paid in. II
such gwen before April Is OF that year
thoy were to finish portions Of the road by
1st Of January 1874 and portions by the Of
September, 1874. provided tho company ready
with the necessary foundations fast required.
The defendant. The Gilbert Company, agreed to pay
tho plaintiff s735. 900 for straight milo and
S23 900 additional for every turn, tho money TO DO
paid IN instaiments OF ninety nve per OF tho
amount OF the work donc each month,
ana when a milo was constructed they were
10 have The full price. On the 27th OF March,
1873, a supplemental agreement entered into,
wherein II agreed that II defendants pre-
vented by litigation from going with the road tho
plAuls were 10 be held harmless Tor materials
struced purchased furnished and tor all expenses
incurred ny hem and also 10 DO reimbursed Tor any
increase In the price Of iron. Tho complaint alter
citing tho Rapid transit net and the change route,
goes On TO state that the plaintiffs have always
been ready fulfil their part OF tue contract, but
charge that the Gilbert Company have fned to keep
their part OF the agreement alleges that the stock
OF the company has nearly all been subscribed and
that the Elevated Company has entered into a
tract with the New York Loan and Improvement
Company for the building of their plans vary.
ing somewhat In deta, from the original contract
PROSPECTIVE GIGANTIC PROFITS.
Tho New York Loan and Improvement Company. ~
further alleged been al proceedin with
toe building OF tho road so that the Gilbert Elevated
Railway cannot full us contract VITA the plaintiffs
account interruption, planurs ~, they
are damaged Ia the amount OF $4,000 for time and
would have cost them only ss5oooo per mile 10 build
tho road that their pronts would have
ssl0, 900 NILE age regating on tho ten miles already
under contract the ittic sum Of S. QUO, 600
The complaint then goes on 10 state that The GIL
bert road has authority 10 build TWENTY-FIVE miles OF
road, OF which only len mites arp included IN the
contract with the plaintiffs. About The time this
tract with the GILBERT Company entered into only
scr'bsd, and by some arrangement 1000 shares
wsro issued 10 Sir. Fowler, president of tho
road, 10 further the procuring OF the capital and
keep control Of tho road. In 1874 or 1915
Foster got some other persons including Messrs.
Navarro and Puilmpn, 10 enter with HIM into scheme
tor making many millions OF dollars
building the road by means OF this scheme they got
control OF the road and associated themselves Tho
| New York Loan and improvement Company. They
secured IN their interests majority OF tho management
oil the Elevated Company, and February 1870, COM
pleted contract Tor the building OF road, whereby
the Loan and Improvement Company were 10 re-
ceive 81 l00 600 per milc OF winch $500. 600
5000 900 be pad cash and the balance on tho
nrst and second mortgage bonds OF the Elevated Rail-
| road Company. The Loan Company, IN pursuance OF
their contract, made vii tho Edgemoor Iron
| other companies Tor other sections a. about
| the same proc Under these various con-
tracts the road ~ being rapidly built and The Loan
| and Improvement Company mas absorbed nearly
been Issued. Tho complaint charges that the carry
log VI this contract will virtually divert the Gilbert
Company OF It's franchises and Will turn Them
the Loan aud Improvements Company, and unless tho
| and all other creditors VIII DO remediless.
| THg PRAyKR JUDGMENT.
! In conclusion The plainuns ask, nrst, damages to
the amount OF ~ 500 900 against the Gbcrt Company,
| Company They then ask for an Injunction
| against both companies from meddng with or
| removing she nrst ana second mortgage bonds
or IRON morsagng tho properly or deIiv-
set aside the contract between tho Loan Improve
| msnt Company and the Gilbert Company, aud finally
Tor speci1 ID performance OF tho conlract with tho
| New England iron Company.
| The compliant rs sworn 10 by Edward X Virgins,
of Hartford Conn Mcssrs. Fitnian Clark, tue
plant rs attorneys yesterday caused ms pen 10
30 died 10 the County Clerks Office.
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