New-York tribune., 1885-01-05
RAILROAD INTERESTS.
RESIGNATION Of TRUSTEES.


UNWILLING TO ASSUME RESPONSIBILITY FOR A BOND
ISSUE.
1t was ascertained yesterday that David
Dows and Hiram Barney had handed in their resigna
tons trustees OF the first mortgage bonds OF the
New-York Elevated Railroad. Thosreason for their
action was said to be difference Of opinion between
Mr. Gould and the two the legality of an
first mortgage bonds Of the company
About August last it said in The Times of yeser-
day, the trustees of the mortgage on the
New-York Elevated Railroad upon which
$s,5O0O00 were outstanding, received
written request from the Manhattan Rail
bonds on the new mileage" as the third line Of rails
opinion of the law frm OF BIatchford. Seward and
pa Costa sond s Done rsses sss
Messrs. Dows and Barney, refused to issue, issue the
Nevertheless they suggested that Judicial opinion he
had by making up ease for the Gene General Term ana MI
would then do it. A little time passed the
story continued, and no notice was taken OF
the Manhattan Company demanding their resisnations
true" said Trustee Barney last night to TRI
our tr,iseeshp. We did about ago, but for
do not feel the necessity of stating them
,a fact do not wish to say ay thing about our r0'
The reporter suggested the reasons given but
Mr.. Barney shook his head aud would not say whether
not they correct. " do not know, he added,
whether the bonds have been issued or not or who
have been selected as trustees TO I'LL our places"
Robert VI. Gallawny. presl'lcrt or tue Manhattan
Railway Company. said last evening that MessFs Dows
ani Barney had submitted their designations as trustees
of tile NcwYork Elevated Railroad first mortgage ana
Board Directors had accepted hen Inc transfer
the had yet been made. however, and their
slccessDrs had not been appointed II was proposed
make trust company the trustee. Under the
tripartte agreement the tw0 original elevated roads
bound themselves reimburse the Manhattan company
Ipeii for c0nstYIctOn AMI Low equip
mant. The NewYOra Company owed the MaDDattal on
tbi, account ahOut S7C0,D0 About six months ago q
demand made for the payment or THIS sn ana II
was arsad by the Newi directors. Tie question
tllen arose as TO how the should be provided for
David dudley Field who drew the first mortgage OF athe
New YORK Company submitted opinion that add
tioal could ne Issued for this purpose under the
mortcage The trustees. however. took legal advice
indspDsel to assume the responsibility Oh
suictlouing the isSLc. In addition. Mr.. Galaway
thought they influenced by desire 70 retlre from
much actiTe business as possible. 1hey accoruiDR
rendered their resigndtiODs.
MI tiallawny denied that any demand had beeu,IDade
reclamation OF the trustees. lie rldculed tne
the elevated railroads said thai bonds. either first
.age. would be issued except upon the
Kai advice II would bc folly 10 attempt TIE ssic
any Irregular security, II could not be negotiated
iouli stated that the ManhatSin Company WAS HOT
no n contemplating the issue Oi honda The New
for new construction aud equipment and eventually the
payment would br made. He denied tat the rrslGhl-
lions o: Me--rs Dows and Barney had been demanded
or that they felt otherwise than friendly To the company
MIR Gonid sad: The only shrCd of truth IN the pun
this intlm1tiOn came 10 TIE DOu thal
alton of hematier procees far that they were In
formed they retired trfis company woud be
chosen accept their trust No Official action however,
yet been taken"