New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-07-02
DEMANDING IT'S PROPERTY.

LEASE DECLARED TO BE FORFEITED.
ACTION OF TIE DIRE, TORS OF THE NEw-YoRK ELE-
WAITED COMPANY THEIR DEMAND UPoN THE
MANHATTAN COMPANY RrFUsED--A SUIT To BE
BROUGHT.
The directors Of the Ncw-York Elevated Railroad
Company held special meeting yesterday rs No. :
Broadwav II was called by Cyrus w. Field in
anticipation of the inability of the Manhattan
Railway Company to pay the interest on the bonds
and the dividends on the stock of the New-York
Company accordance with the stipuatons of
the lease. When the directors had assembled it
was reported TO them that the Manhattan Company
had not made any payment a required either for
the interest Nr for the dividends. The following
preamble and resolution were adopted unanimously:
60 perform the ~ the lease nads L. ID ~ this
comlSny IN ~ II as not paid or rendered the taxes
ne ,onlnnn' or ~ mn'h OF me taxa A. was Justly
ment - -"7 900 due thi- day upon the bonds Of This
inia ~ 5000 and the quarterly dividend rental OF
Rhereas. The failure 70 tender pay said taxes has
continued now Tor more than three months and
Bh.rcgs. IL appears from statements fnrn shed 10y
the Manhattan Railway Company that its
arising from property leased nv ths company have,
the pasi hN months, been more than enough pay all
Of the intt rcsf rental aud dividend rental above
toned hut said revenues have been diverted therefrom
IN Violations at itS dntJ 10 this company and
bhereds, Consequences rnons to this company aris
CATIONS nboYe mentioned have been aycrtcd ouly by
stockholders or TINS company In advancing money from
Rcs,issd rGnt raid lease has become forfeited. l and
that immediate steps be taken by A' president OF this
company Ia regain possession OF it's leased property
the Manhattan Railway Company and 10 secure this
company the revenues arising thcrefrom.
committee. consisting of Cyrus w Field, John
III. Hall and Benjamin Brewster. was appointed TO
make formal demand of the Manhattan Company
for the surrender of the company's property. This
demand refused on the ground that the Manhat-
tan Company had been restrained by au injunction
from paying the money. The meeting then adj
journed subject to the call of the president. There
will DE another meeting of the directors to-day or
the first of next week.
" We have received no money from the Manhat-
tan Company" said an officer of the New-York
Railroad to TRIBUNE reporter yesterday, " and we
consider that the lease is broken. The officers of
thai company claim that they are restrained by an
injunction Possibly that may hay some effect but
don't think We are paving to-day the interest
on our bonds, but not the dividends on stock"
President Galloway. of the Manhattan COMPANY
declined to say anything yesterday regard TO the
matter.
Cyrus w. Field said that suit would he begun
to-day to compel the termination of the lease and
To regain possession of the property.
- Judge Van iloesen, in Chambers of the Court of
Common Pleas, granted, Thursday evening, tempo
rary Injunction and an order to show cause why il
should not he continued pendenio lite, returnablc
pinasse against the Manhattan Railway Company,
ihc New-York Elevated Railroad Company and
the companies and their officers from paying
to the stockholders of the New-Y Company
my OF tne income ana pfOlts OF tne railway ana
property of that company or due II from the Man.
haitian Company, and also for an accounting be-
tween the companies since November /, 1880 The
complaint rcctcs that Mr. Lcspinasse Is the holder
of certain bombs ssied by the NewYork Company
and secured by trust deed TO the individual de-
PENDANTS; that the capital stock of the company is
$4,000, 900; that the Manhattan Company is in
solvent and is liable TO pay the bonds of the former
company to the amount of TS,500,O0O and
Yl2SlS, 900 of bonds issued by the Metropolitan
Railroad Company, and also takes in the sum
of 5000. 900; and also that the New-York |
Company il exposed to unsettled claims for damages
done to property along the line of its road amount
ing to not less than 100000. 1t is further alleged
that all the rolling stock and personal property of
the New York Company is liable to be seized and |
sold by the authorities of the City of NewYork for
unpaid taxes, and that such seizure and sale would
result in stopping the operation of the road to the
Inconvenience of the public and the irreparable I'M
jury of the plaintiff and other bondholders. lit is |
finally alleged that tho Manhattan Company in |
tended to pay to the NewYorlx Company on July |,
1881, the of $325,O00 due to ii under |
certain lease and the distribution of |
which among the stockholders of the New-YorS |
Company wonld seriously impair the security of IFS
bondholders. The apparent purpose OF the SUIT and
the character OF the relief demanded are subsan-
italy the same IA in the suit brought few days |
ago by +. NJ. Weller against the Manhattan and |
metropolitan Companies Judge Van lioesen |
granted the order to show cause on the motion OF
Mr. Lespinasses counsel, Julien +. Davies.