The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-10-12
FIGHTING RAPID TRANSIT.
PROPERTY OWNERS COMPLAINING TO
THE ATTORNEY- GENERAL.
Elevated Railroad Racket and Chatter visor-
susiy Described-Ons Man who sees In.
sanity In the Future-A Financial TnngIe.

Attorney General Schoonmaker sat yes
terday in tho City Hall Library to hear COM
plants from property owners. creditors. and
other persons who are hostile to the Meropoli-
tan Elevated Railway. The proceedings were
informal. When the Attorney General first Az
pointed the hearing. 1t was to listen to the argu-
ments OF lawyers representing certain creditors
who wanted to have the charter Of tho Now
York Loan and improvement Company revoked
for Its failure to comply with the law In several
respects. and TO have tho contracts between the
Metropolitan Elevated Railway Company and
the Loan and Improvement Company set aside.
The proceedings. however. took wider range.
Besides the lawyers. Messrs. Edwin r. Meade.
Waldo Hutchns. cx-Judgc Fithian. and others.
who were to present tho case. a score OF prop
erty owners headed by Ellwood L. Thorne.
were ready 10 explain their grievances
Tho case was opened by Mr.. Mead who set
forth the grounds on which his clients request
ed n suit by the Attorney General on behalf Of
the people against tho two corporations-the
loan company and the railroad company. by
the Attorney " Generals requirement the COM
plant was made In the form OF IN affidavit
which was sworn to by u. Mclean shaw. n
stakeholder in the loan company. 1t alleged
that the loan company had violated the law in
not reporting TO the Bank Department: in neg
tcShhk W hhho EebuIus W tut olatt Esnkl0c'Ts
In failing to file the certificate OF its business
with the State Comptroller. and in not complet-
ing its organization by securing the necessary
ten per cent cash payment Of its capital stock
The loan company. Mr.. Meade said. owned
no property over and above its liabilities
But II was not probable that this complaint
would ever have been made but for the injus-
uce done the Metropolitan Elevated Railway
Company by its contract with the Loan and Inn
Proyement Company. The contract calls for
COrliQR TO thn CarpflI Communication Of tha host
engineers, was adequate TO build and equip the
rr8ad. Under these enormous mortgages OF
$4,000. 600 mile the mortgages would be fore
closed whenever judgments were obtained
against the road and no damages could be col
mile meant Insolvency. Mr. Meade contcnded
that the roai,s having To pay interest on its
m,ortgasess out OF us earnings enabled 1t 70 de-
He offered to prove by the railroad contractors
that the road could be built fox the sum he had
Ellwood E. Thorne In handing in the Grand
Jury's presentmeht. said that the railroad
company had made merely the sembance OF
an EFFORT to prevent noises. He referred to the
cropping OF oil and fire from the engines and
the escape Of steam and noxious gases.
Robert Sewell OF the law firm OF Sewell 4
Pierce. said that he had lived on cross street
}4O feet from Sixth avenue. for eighteen years,
he owned his home. and the noises would
compel him to give II up and go forth homeless.
awanderer and tramp. The burden was too
death for those persons within range OF the
noise. Mr.. Sewell's description Of tho annoy
hnce SuIIerel by the uWelerS along the line OF
the road caused much merriment " 1t is worse
than the roar OF Niagara he said. We
might get used TO it II the company would run
an eternal train by an endless rope. but IL is
and a halt that is unendurabe." Mr., Sewcll
ming OF trains between p. NJ. and "a. NJ. on
the ground that the night trains were
nSiSanssei ana were not a public necessity. .
property in. Sixth avenue said he had suffered
great great loss in rentals. He had served in the
war and riots and his own G property SrS sas
property owners cited cases Of depreciation in
the value Of property and rents. and injury to
Wine Charles A. S sch err nls o, West Fifty
third street was telling about seeing a live coal
drop from passing engine he was Interrupted
who said that Mr.. Schermerhorn was mistaken
As the locomotives were SO constructed that II
was an impossibility for fre and ashes 10 DO
dropped. This assertion created storm Of in
dlgnation In the ranks OF the Sixth avenue
once in contradiction OF Mr.. Lowery's assertion
Ellwood E. Thorne said a live coal fell near him
while he was passing under the track at Twenty
thlrd street lew evenings ago.
Mr., Higgins, proprietor Of the Cosmopolitan
Hotel a Chambers street and West Broadway.
had her hand badly scalded by a discharge OF
b., water ana ir4m an engine Eng while walking in
the side toward the railroad.
Mr.. Grosvenor p Lowery made three hours
argument reviewing each OF the allegations in
the, complaint submitted 10y Mr.. Meade. He
said that Mr. Shaw. who announced himself as
q stakeholder OF the Loan and Improvement
Company. was unknown TO the company He
owned one share OF the stock. bought in July
last. and there was nothing to show ia the mat
ter he had laid before the Attorney General
that he was not acting as the tool OF others in
the suit. Mr.. Shaw had been led to swear 10
matters OF fact Of which he had no knowledge.
was not Informed MT Io%ery r %hSH the he
complaint. which. he said violated fundamen-
tai conceptions entertained by every lawyer
touching the jurisdiction which the people may,
through the administrative AMI judicial
private affairs Of citizens, twns tho privilege
OF the Attorney General. In this case. 10 inquire
whether the applieation was made Tor good mo-
terest will be served by, such an action. or
whether the people, would DO losers by it;
action. and how the movers OF this action
are specially Injured by the acts complained OF.
either as stockhoders creditors. or otherwise.
road could have been built for 100000 mile.
and that II had been mortgRged Gin an unneces-
ter. Jr., formerly Vice-President OF the road.
The substance Of the affidavit which gives the
nrst Official account Of the connection OF tho
Loan and Improvement Company, with the
railroad company. IS ms follows: The capital
0Oo, divided into $4,000 shares Of 800 each In
1872. 5000 shares were issued To enable the
company TO settle with DIR. Gilbert for certain
pAtents. A thousand shares were atterward H.
sued for other expenses. The stock has been
since bought by other persons. most q it being
owned at the present time by the Now York
toan and, Improvement Company Mr..
Foster and his associates had no money
10 build the road They, tried IN
Al last induced George NJ. Pullman. jos6 f.
Navarro. and William Il. Garrison 10 all them.
These men were advised that many millions Of
dollars would be needed 70 build and equip tho
twenty-five miles OF road Contemplated, and
they decided 10 organize themselves into cor.
poration TO enable them 10 hold stocks and
other 5ecuritios This led 70 tho organization
OF the Now York Loan and Improvement, Com
pauy. and 4 contract. perfectly fair and Just
WAS made between the loan company and the
railroad company by which the former got con-
troll Of the latters stock. The sum eXpendod in
building the road. Mr.. Foster swears, was
greatly IN excess of f40O 600 milo. Mr.. Shaw
In swearing that It did not cost that amount, no
says. does not take iEtO consideration all the
expenses, such as the purchase Of several blocks
oil land when tho road Is completed.
Mr, Foster concludes his affidavit with tho
allegation that tho principal promoter Of the
Application Is T.. X. Wiggin. agent OF the New
England ion Company which has suit pend
Ing In tho Superior Court against the railroad
company for an alleged breach Of contract
George W. Wingnte and ex-Judge Ashbel
Green spoke In behalf OF tho New York Loan
and Improvement Company. Waldo Hutch.ns