The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-05-03
AN ILLEGfL FERRY LEISE
Judge Van Worst Renders n Decision Against
the Union Ferry Company.

Brooklyn men need have no fear that the
ferryboats will be stopped Immediately in con-
sequence OF the opinion OF Judge Van Worst
that the existing lease OF the five ferries Of tho
Union Ferry Company Is illegal. Tho forry
company intends to carry the case to tho Court
OF Appeals. and. until the decision OF that ribu-
nal is rendered. the bonts will bo run as usual
II has taken about eighteen months to obtain
tho decision in tho Supreme Court but II tho
city avals itself OF its right OF preference. tho
verdict OF tho appellate court may be obtained
In threo or four months. Should Judge Van
Worst be sustained. the Union Forty Company
will have no right to run boats.
Previous to 1861 tho ferry company paid
100000 per annum for the lease OF the five fer
ries. but in 1869 they obtained anew lease dated
May 1. 1871. for ten years. which included the
Fulton Ferry. South Ferry. Hamilton Avenue
Ferry. Catharine Street Ferry. and Wall Street
Ferry. the rental being nominal amount. on
condition that for two hours in the morning and
two hours In the evening the ferriage should be
only ono cent Mr.. George Ticknor Curtis. on
behalf OF the city. claimed that this lease being
for the benefit OF only particular class Of clti-
2zens. and being in derogation Of the rights Of
the sinking fund established to secure the crodi-
tors OF the corporation, was void.
Judge Van Worst. In his opinion. sustains the
claim oil ne corporation. After stating the sub
the demurrer. in which the right of tho city TO
brinR the suit was upheld. he discusses the
facts shown upon the trial. 1t has been
proven. ne says. that at the time OF the ex-
ecutlon OF the lease in question there existed
ordinances OF the city corporation, approved Of
by the Legislature of the State. which created,
established and guarded a sinking fund for
the redemption OF the city debt, which debt
Re eSse a' 'nG @ He and maEps q
Judge Van Worst then points out the various
sources Of the income Of the sinking fund; that
been regularly paid for the purposes of the
sinking fund prior the lease IN question. leav-
ing the Union Ferry Company the ability to pay
~ per cent. dividends on a capital stock of
OOO that the receipts of the company
Increasing. enabling 1t not only TO pay 10 per
cent. dividends but TO carry every year a sur
plus OF earnings to reserve fund; that the
the former lease, and that the present
liense ,iis at a.. merely nominal value;
This" he SAYS: - capno,t, consider they had
vious decision that the Sinking Fund Commits
sioners were under n positive duty 10 the tax
paying Inhabitants and creditors Of the city to
obtain the proper rental value Of the city's
property, md that the con cession In the case Of
these ferries was unjustiiied. The Commits
ssoners.D he says. had NJ, right to give away
70 private corporation. md forthe benefit OF It's
stockholdcr the rent which wns fairly demand
able and which. 1t appears, 1t was not unwill ng
- 32pay: upon the condition that persons crossing
Z in the morning and afternoon of each day
should be allowed to do SO at n lower rate than
those who should cross during other hours Of
the day. This concession can in no Just sense be
regarded in law as an equivalent Tor the rents
Withdrawn from the sinking fund II could
n9t be withdrawn for any such purpose.
not conclude that the lease can be upheld upon
authority. But otherwise think reason JUS
clude that there must be judgment for the plain-
TIN as demanded in the complaint"