New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-05-19
PRICE FOUR CENTS.
A RECEIVER ASKED FOR.

Justice Donohue in the Supreme Court Chambers
yesterday granted an order TO show cause, return
able May 30 in an action begun by the Attorney
General in behalf Of the State against the Man.
haitian Railway Company for decree diSsOlving
the Incorporation of said company and forfeiting
Its corporate rights and vacang and annulling the
charter and existence of said corporation" and for
the appointment Of receiver. The order granting
permission 10 begin the action was made on the
affidavit OF Attorney General Hamilton Ward, to
the effect that facts had to his knowledge
which, in his opinion made such an action expedient
and necessary.
| Attorney-General Ward has been In this city for
nearly week, investigating the affairs of the Man
haitian Company. The letter of the President Of
| the Manhattan Company to the Mayor Controller
and Corporation Counsel Of this city, asking that
legislative aid be invoked to reduce the taxation "
the Manhattan Company, on the ground that IL was
unable to pay its fixed charges first attracted the at
tention of Attorney-General Ward, aud after thor
oughly investigating the matter he decided to apply
to Judge Donohue for an order granting the people
leave to sue the Manhattan Company, through
| the Attorney General, that the company be
dissolved and receiver appointed. The pa
pers IN the case are very voluminous, and
set forth that the corporation should be dissolved
and its charter amended because it has violated
its charter and exercised power not conferred by
law. It is alleged that it has been insolvent for
more than a year and that it has failed TO pay it's
taxes for more than year Accompanying these
papers is complaint Of Benton ~ Harrison, setting
forth these facts, and asking that receiver be ap-
| pointed.
| The Acknowledgement found last evening 40
the Windsor Hotel When asked what had
prompted his action he made the following reply:
My attention called to the condition Of t,e Man
haitian Company by reason OF the extraordinary position
when II assumed time In asking DE relieved
from taxation. This is the first time in the history Of
been made felt 1t my duty 10 examine into the cond
tion Of this company with view 10 taking such action
The law may require. In such investigation avaled
myself of the services OF Benton :. Harrison.
| II appears from such examination that the Manhattan
Company incorporated for the purpose Of construct
ng aud operating an elevated road upon certain defined
erc-ed s full corporate powers, has never constructed
road but assumes TO operate two roads los virtue Of
and the NcwYork Elevated Railroad Company.
y reason Of the leases the metropolitan and Nrw York
Elevated hallway Companies surrender their franchises
and privileges and their rights Ia operate their road TO
years These leases we're made in May l-79 and upon
the making thereof the Manhattan Company TOOK pos
Of the roads in question and has since continued
to operate the same and the other companies
have since then in no manner exercised their
to these roads il is very grave question whether those
corporate rights are not forfeited will not decide Mt
prrs,Bt whether II is my duty to take proceedings
against either the Metropolitan or NewYork Company.
Ii IL also question whether these leases are not
void being un~arranted In Law. aud in my opinion, the
Manhattan Company, In entering into such leases, e1-
|
property except these leases and no auhorlty
operate the roads except through these leases have
proceedings as will prevent the further exercise Of
power BY this corporation IN this Illegal manner.
sumed certain obligations among which was that OF pay
an S onap;e nc si % com
| pany has not performed by its own statement
OF nearly q million OF dollars. and the com.
Rany conc'des IN is e9mmnncsfSn com % :, tot to the Tax
losing business under these leases that IL perform
Its contracts with the other conpanies and Is on the
verge Of bankruptcy. II appears that this corporation
has had property In these leases equal In value to the
Obligations assumed thereby and therefore, Is and from
the has been lnsolyent By the statutes
this Is made the duty of the Attorney General
ever it is ascrrtaned that they have exer:
ci-cd power nnwarrantrd by law have failed
have been uso year see ample cause in this
To h more specific under the lease above referred 70
the Metropolitan and Ne York upane- took the en-
haitian the leases. assume that this wholly Illegal
to all the contracting parties for the laws Of this
vest it, franchises and Of its duties to the pubic
the Manhattan Company Ia con-
SfG ary be 80 n..S 'nSS that that the laws % Of ~. sias
have never auih"zcd the Incorporation OF one rompany
wo other corporations and discharge the duties and
exercise the franchises which the state has ginnted
such two corppiailn-. Besides, the agreements be-
tween tc companies show that the Manhattan Company
an sr they delivered Tic entire Si3OoO0Oo Of capl.
stock ~ the Manhattan 10 the Newiork and Metro
poitln Companies. Therefore when the agreements
were made the Manhattan was evidently not bona
hde corporation WIN stIrAhoid,'s ana a "' 'sanh"9n
existence ma" be said Ia have ceased under ~ o~n
charter which provided that unless constructed It's
railroad within the time Xcd by the Rapid rrn.l, COM
u>.iuncrs all OF It's rights and franchises shold be ior'
The Increase Of its capital stock from S1ooo,ooO
to SlJOoO.Ooo was wholly Illegal, Tie statute having
capital stock should bc found insufficient for construct.
ns %a optadd"s neither III [OaG then But nor % at any
time since has contemplated c9nstrurilnE anS,
cl ior thai purpose. the vice OF the whole trans
action l. putting a corporation to dcaAns WIN inc
but picrc Of writing called lease. nndrr which tho
annually accruing cations exceed Al the present tino
by about ~ 10000 the annual net profits
There was an extra issue oy th. eotp1al.n eo sneTs
toy their charter which, seems - me- was
violation Of aw and Is OF those gigantic -Nndles
upon the community which should receive ihs notice OF
the public authors and the condemnation oi the peo-
pie The watering al stock In violation o hnnr-t oDlga
tion- wirh orprhton tru OW. % tne li, an" y
the gennnr Stockholders who have pai h'lF hnsy in,
in good faith has become fruitful source o' lObDey
and fraud IA this country when cannot De 700 strongly
- ... a., s.o.
to proceedings against corporations or lniVlu
unis who claim 10 be Incorporated that arr engaged in
rapid transit lines will be discontinued or tina, tue pub
c viii BE- by TIE Rtoeg%hS' ,@r % nam rns
Df these roads IN a manner entirely consistent
%i,n snEo ' such disposition Of them as shall secure
the honest stoekhoiers ~ these corporations what
llcSa aud unJstnabe proceedings to which have re-
erred.
Officers Of the elevated railroad companies re-
used yesterday to speak i'll regard to the rumors
,ilecting the companies which were circulated. The
directors of the New-York Company have been
nXious for q long time to possession of tho
property. few weeks ago this company made
ormal demand on the Manhattan Company for the
aymcnt oi the taxes the property, thus seeking
put t,t ii III position To demand instant possess
ion of its road when il considered IL to Its interest
q do ~. The present suit by the Attorney gehera
5 likely 70 aid the NeM-Nork Company.