New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-24
THE BROADWAY DECISION.
FRANCHISES NOT AFFECTED BY REPEAL.
THE MORTGAGES A VALID LIEN on THE PROPERTY
AN APPEAL TO BE MADE FROM JUDGE PECKKAM.
fBY TELEGRAPH THE TRIBUNE.1

THE MORTGAGES VALID LIEN on THE PROPERTY
AN APPEAL TO BE MADE FROM JUDGE PEcKKAM.
fBr TELEGRAPH TO THE TRrBUNE1
ALBANY, Dec 23-Judge Peckhsm of the Supreme
Court has decided that the Broadway repeal legislation OF
last wnters constitutional and that the mortgages are
lien tho property. The case Is that of the People
against OBren. receiver OF the Broadway Railroad At
torney OBrien will at prepare an appeal
from the decision The appeal Will be taken to the Gen.
eral Term, comprising Judges Learned Bockes and Ian
don IL meets January 25 and the cause VIII be
preferred decision may be expected In March or April
IL will thus be possible TO bring the before the Court
of Appeals and decision before the summer re-
cess The counsel in the will meet in NewYork, at
Ehu Roots Office Tuesday next to settle the findings
OF fact and law in odays decision 1t expected tnat
the counsel each side will make up exceptions, al
though the appeal the chief point of the litigation must
be taken by Attorney General O'Bren Judgment will
be entered next week after the meeting Of the lawyers
Following the points OF Judge Peckham's decision
FrstThe act disolvng the corr grafton is effective
ercse OF egsaye power and npon its passage the Broad
Seeond-The broadway surface Railroad Company had
and franchises incIuding the right Broadway
for the purpose Of completing operating its road and all
and the at providing for the sale OF such franchises az ac
Of New York Is invalid against those holders Of bonds
Tlrd-fhe so caicd FGc aTrsneeme1s or agreements
tween the broadway and seventh Ayenue Railroad ana
and Broadway Surface Railroad Company were valid when
nauc III" aic aiiccltu VI N"'
pany . - -, ,,
fourThe receiver takes all property Of the Broadway
Railroad Company and IL l. his duty TO wind up the
OF such company under the sOcaled winding up
far ts provisions applicable upon the basis OF
this decision
ITAsa OF its properly the receiver takes the fran
chsc 10 run Broadway, subject Oh
mortgages and 10 traffic arrangements
SIfH-i he does the question hS 10
rights particular holder bonds secured by these mort
bnt only decides II there holders VINO arc
entitled 70 enforce the liens such mortgages those liens en-
and the franchise through BrOadway
SrenIhe the which provides Tor proof OF
debts before the receiver and the taking OF testimony by @
and the decision OF the such testimony does ot
provide for such hearing before Judicial tribunal az an m
dvidua who claims creditor entitled TO- and hence
imposes obligations upon them to comply with sch pro-
Judge Pcckhams opinion was long and elaborate
Among other things he said:
The policy evidenced by ts various
alton upOn the subject OF the franchises oil colO
which property TO keep them alive in perpetuy
notwithstanding the insolvency death OF tho corporation
tho Legislature extends 10 the terminating OF
e and the control and regulation OF t
H. franchises the corporation Ihat All tat
hea hfu such power In ms case tle fh-
chise Broadway is intended oven by inns
legislation biOcd IL is 10 be kept alive ana To Dc
operated 10y another who shall purchase II a an auction SAFE
and the proceeds 80 to the city Of Newly orA