New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-09-30
A NEW MANHATTAN LOAN.


AND W. f. CONNER GIVE THEIR OPINIONS on THE
VALUE OF THE PROPOSED OBSERVATION-DISCLOSURES
ORDER AS GRANTED.
Justice WestbroOk of the Supreme Court YES
fery granted application of the receivers of the
manhattan Railway Company for authority to borrow
money certificates for the purpose OF paying the
hs dividends and interest in which the company is in
sefault to the Metropolitan and New York Companies.
irbe amount was fixed at million dollars and the
nrder suggested the Court by the receivers was
modified SO to make it plain that it bore
guaranty from the Court that any more than the
Droperty actually owned by the Manhattan Com
pany was answerable for it, and no pledge
that the property of the lesser companies should
be held in the possession OF the ManhattanCompany
Ali the certificates paid Upon explicit statement
10 this eect westbrook insisted for sake of
the public, which, he said might not understand the
matter as lawyers in the did. The hearing of
the application occupied three hours and it more
ahan twice many before satisfactory
ahe order could be agreed The matter therefore
carried into the night
The arguments were heard by Justice Westbrook in
Nav Goulds Office the Western Union Building. The
opening postponed two hours in order to give
Judge Comstock OF counsel for the NewYor Company,
time to into the questions involved. The hearing
began a short time after the hour OF noon, and
ia interest to the Bar was so great that
The room was crowded with lawyers. General
Wager Swayne appeared for the receivers, Judge
Uomstock and Mr. Bacon for the New-York Company
md Mr. shafer for individual stockholders the Man
haitian Company. and Mr.. Stone for the METROPOLITAN
Company Late IN the proceedings Mr. Whitney also
requested that his appearance in behalf of
the City of New-York a large creditor might
be entered. General Swayne, in opening the
case said had brought by the receivers at the re
ques of the Manhattan directors. He would therefore
leave the Court and the counsel for the
Manhattan Company and the persons opposed TO the
proposed issue. He sad Also the matter of the
of int IN he maid fha
ers desired not to be understood suggesting any desire
10 have discretion beyond per cent
THE NEw-YoRK CoMPANY's ANSWER.
Mr.. Bacon read the answer of the NewYork Elevated
Railroad Company 1t alleges term of the lease
expired on the date or the appointment of
and their taking possession of the property also that
the Manhattan Company is hopeessy insolvent; that
Its indebtedness on September 80 will amount to AT
least S2,6440s0 that it is daily increasing and that
there is deficit and above the operating expenses
and fixed charges of at least 81, 900 900
per annum. That the net earnings of the
Than enough to pay the interest s bonds and div
net earnings of the Metropolitan Compapy are barely
enough to pay the interest its bonds. and
Enough TO do this from October l. 1850 the dat of
The appointment of the receivers. aud enough
ceiSers up to September l. ISL there was deficiency
1t denies that the time limited after default when
The New-Iork and Metropolitan Companies might re-
fner and take possession OF their respective properties
S9h on september and alleges that the time limited
Expired before that date II that the
contained in the preambles passed by the Manhattan
Directors Oh Tuesday misleading and denies ne
receipts are rapidly Increasing compared with The
tons for tue same period in former years. and alleges
,nat the expenses for the operation OF the road have
peen increasing proportonatey with its receipts, while
NE Inc net earnings are no greater than they
reason why the Manhattan Company is unable to pmT
The fixed charges and fulfil the commands of the
purpose and the roads he operated in the future
30 as 10 meet the fixed charges and other expenses
diture OF at least S2O00OO0 forthwith required to
ment aud provide rolling facilities for tie
safe and proper operation Of the railways operated
lease from the NewYork Elevated Railroad Company TO
the Manhattan Company the latter agreed TO pay as
mort &c honSf IS Nh WI G i,evss ., tne nrst
plains and demands against arising from under the
bonds any or them That by the eleventh OF the
lease the Manhattan Company agreed that the lease
Ted should n f DoT es aG 6} and
leased transferred suo-let assigned or ucunbered ex
which had not been obtained and nat issung the
certificates would be violation Of the the
hrst article of the lease and would bc placing lien upon
the easeold estate and the earEings Of York
Company for the benefit Of the holders of bonds of
the Metropoitan Company in violation of the trparte
agreement and lease.
MR.. FIELDS AFFIDAVIT
In support of this Mr. Bacon read an affidavit
Signed by Cyrus W. Field, which recited comparison
of receipts and expenditures between the Metropolitan
and the NewYork roads. and also letter from Mr. Gal
laway president of the Manhattan Company which in
flosed some DgnreS trOm the report made by >. IL.
shreye the condition Of the Of the roads
These figures showed that would SI75 900 TO repair
The structures as TO make them absolutely safe but
total expenditure of 50 O235 10 put them into perfect
condition lie also read ali affidavit from Russell sage
In my opinion, the insolvency OF the ahove-named
defendant the Manhattan Railway Company is hopeless
ena lrretrieyaDe aud the granting OF the prayer the
petition OF said receivers would at the utmost only re-
suit in further compeang the affairs OF the three com
Panies IN interest, and in Proongine for a
Of said Manhattan Railway Company for contin-
nation OF Its existence. Said Manhattan Railway
Company has substantially property except the
Elevated Railroad Companies, and the income arisjne
oR the possession of the railroads mentioned therein
be gwen them to borrow money and issue cerficotes
lyery believe that person would adj any money
OF the repayment thereof, and that the only
persons who would make any such advances
OF said Manhattan Railway Company, by whom said adj
yanees may be made for he purpose Of enhancing the
ebhng them TO dispose Of said stock to public at
prices above the present marker value thereof"
Similar statements were made i'm afiiaayits bv Tow
Gould and Washington Il. Conner, which were read wy
Judge Green then argued that il Was the sole fnctop
OF the reeevership preserve the propery aud tbe
cianhattih Company wanted done whatever would do
others Had the property been taken out OF The
nanus Of tne Manhattan Company, II would ths
Ist anu lSht nave Issued oblgationa and raised
money II SO, the same right ought remain with the
- While Mr. Strauss, who next was speaking
Judge Westbrook offered suggestion which showed
the position he would take He could issue certif
power TO bold the property until then payment
II the certificates go out he said, they must so
viii declaration on their face that the were taken
subject to the rights Of The lessons in the property
oonr oas the property in its hands II Ought not
Darrasslnehts of the Manhattan Company. can nOt 40
tnaIy belonging to the Manhattan COMPANY. II il
ehona eventually be adjudged that the Manhattan Com
mas no rights Iii the railroads. they would
little alue in the certificates.
md (o,. I'D.