New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-09-29
THE MANHATTAN RECEIVERS
ASKING LEAVE TO ISSUE CERTIFICATES.

lhe purpose of the meeting of the directors
OF the Manhattan Railway Company held on Tuesday
was made plain yesterday. At it preparations were
made for movement which is designed TO check the
enort OF Cyrus W. Field to regain possession Of the
property of the NewYork Company Hence the mystery
winch surrounded all the proceedings The action Of
tne directors is embodied in the following preamble and
resolution which adopted the meeting on Tues
DAY afternoon and promptly receivers OF tho
Company:
20 1nereSs e % The Manhattan Company has been
companies or the eaTanteed dvtde,S d % , re essr
weed by the terms OF the leases owing the increased
the the onerogs taxes imposed, from which this company
nas appealed, and the disappointment receipts re-
rom the reduction OF fares below the rates al
Merods The receipts now rapidly increasing; and
& me ls unable TO issue any additional
The company being in the hands 0 receivers
oW therefore for the purpose of projecting the in
hesot,ed That the receivers he and they hereby
Sr 70 issue receivers certificates or provide such
paying on the present Indebtedness of company and
amounts due to the lesser companies until such
n as the net receipts shall sufficient 20 provide for
such payments and for the retiring OF such cercato
Acting on the suggestions contained in these rcsolu
uons' Judge Dillon and A. l. Hopkins, the receivers
telegraphed a request Justice westbrook. Of thu
Supreme Court at Kingston, come to this CITY Ba
came yesterday morning and sitting Chambers In ths
room OF the receivers counsel General Wager Swayna
heard petition from the receivers. Cyrus W. Field
VINO was preparing To enter into possession New
II
the hour noon at which be expected restored 70
his rights in the property of company by the opera
ton OF law that the receivers had petition askue
authority of the Court raise certificates the money
in default OF the payment OF which was expecting 20
proceed. The judicial hearing took place ahout Il
o'clock The receivers were represented by General
Wager Swaype, the New-York Company by Mr. Bacon
and Mr.. Deyo, and the Manhattan directors by Judge
Green and Mr. McCook. The begun by the receiy
ers is in equity and bears the title. The People Of s
state of Newfork against the Manhattan Railway Com
pany."
WHAT TIE PETITION SETS FORTH
General swayne read the petition which sets ont tia
fact OF the operation OF the elevated roads by tina
Manhattan Company under the leases in May 1879
BY the terms OF this lease dividend of 10 pe
cent on the capital stock two companies to tho
amount Of s65Oo000 each was 20 be paid in quarterly
payments OF $162 each company on the first svs
oi January, April July and October in year; aso
an annual rental OF $4,000, payable semi annually on
January and July l. the mortgage bonds the Other
railroads amounting in the aggregate TO S2l 100000
and interest, besides all and assessments The
provision OF the lease forietng them and empowering the
Metropolitan and New-York Companies TO repossess
themselves of their properties in Of default Of tho
payment Of the cash rentals the dividends on the inter
est for period OF ninety is then forth and also
the failure on July 10 pay the quarterly dividend Of
Sl62,5Oo, and the senannual interest amounting 70
1927 600 to the NewYork Company and sI65JOO dvt-
dend, and 1924, 500 interest the Metropolitan ana
$4,000 cash rental to each; the entire due and en-
paid at that date being $780, 500 None OF sum as
paid except $4,000 each Of interest Tia
petition theu continues
And your petitioners further show Il Is claimed
that the time limited after default according 10 "a
terms aud conditions of said lease aforesaid when SD
New-lork and MetroT Olitan Companies respectively
NAV reenter and take possession OF their respective pro-
perties of The breach conditions aud
covenants OF said leases failure to make la
payments aforesaid, viii expire on the 29th day Of Sep
And your petitioners also show that they have not had
Company aforesaid, sufficient meet aud pay tAe
of il
make and that IN The present condition Affairs Of
the payments aforesaid, Will they be able 70 DO 50 an
or before the said 29tn day of September instant
Yours petitioners further show at a tmectuc Of
the directors OF the Manhattan Railway Conpsny 6eid
Der Instant resolutions passed of the issue
thereon 81 5 ana the procuring Of money
annexed - -
And your petitioners further show that they are m
formed and believe tia, the statements in said resoia-
tons contained are true, and that If thssue the ceti-
hcates mentioned IN sad resolutions De
tins Court the sums of money required to the
Company can be obtained upon the security such ces
tfcates AZ rate of interest not exceeding twelve psr
Your petitioners advised that by reason OF the fset
pay are now in the hands and under tue eonr Of .
Court the failure 70 make the payments aforesaid caRns
Railway Company in the said devised premises but your
and recognizing their great importance the Manhzt-
ian bSonpay ~ ny al5 ITS creditors ana being uncertain
on hand To meet the said payment duty TO taxa
such steps in the matter proposed by aforesaid
resolutions of the Board of Directors win enable tbcm
10 raise sufficient funds TO meet the do 10
on TINS Honorable Court and ask for such instructions
as 10 their duties in the premises this Honorable
Court may deem proper TO give.
Mr. Bacon protested against proceeding the case On
such short notice and asked adjournment tH 10
O'Clock to-day, which Judge westhrook grantee counsel
for the receivers and the Manhattan Company making
objections. The receivers sent up TO hs
Court the form OF order which the Court is asked to
make. 1t authorizes the receivers borrow on certia-
Gates enough money TO pay the Manhattans mdebied-
ness to tho Metropolitan and New-York Companies EDd
also $l75,oO0 winch the Court heretofore authorized tie
receivers 10 expenl I'm repairing the structure TIA
form OF the proposed certificates is embodied IN tho
order. IL constitutes the loan a lien apon all the
property Of the Manhattan Railway Com
principal and interest all the earnings Of tie.
company after de0uctmg the ocerating expenses,
c"St o repairs axes ana expenses OF recevershp, and
failure 60 pay the interest FOR six months make ths
prlhePa oe al me option OF The holder and the receiv
ers can redeem the certificates al any time thirty
days notice The order also makes the eertinca,esa =
discretion TO pay out OF the funds obtained by teir
snch suma as they may have been hereafter ne
due anu unpaid, or any part thereof y stated BY
Judge Dillon last evening that the twelve per
est IN the petition and would
DC made TINS morning substituting eight per ccuL
THE METROPOLITAN COMPANY's ACTION
Intelligence OF these proceeding long reach
ing Wall-st., where it the order en-
powerng the receivers issue the dcbcntures had been
granted by the Supreme Court. The effect upon to
stock market such that Manhattan stock rom
2lll to 13le 423la, ana meanwhile the Metropolitan
Companys directors held meeting office OF thu
Manhattan Company. There unusually large at-
tendance and almost the only business attended
in relation to the companys attitude IN approaching
controversy with the Manhattan Samuel Sloan offered
the following resolution. which adopted:
ResOired, That il l. not eNpedicnt company %
anpear the application made by the receivers OF
Manhattan Company for the issue of certificates
Aferward. the question OF the steps taken 90