Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-01-04
HOLDING THE FORT.
The Library Associations Scheme to
Head off the Bijou.
A PERMANENT LEASE SECURED
Under the Provisions of the Charter Of the
Building Company.
LITIGATION WILL. BE THE RESULT

gard to the control of the Library Hall
property, which presents decidedly differ
ent phase OF the matter from that which was
previously supposed to arise out OF the
purchase OF stock in the interest of the
Bijou Theatcr managers.
This action consisted of an offer by the
Pittsburg Library Associations board to
the Mercantile Library Hall Company Is
board to take lease of the Library Hall
building. as contemplated by the acts
chartering the latter institution, the accept
ance by the board of the Mercantile Library
Hall Company of the offer, and the authori-
cation of lease and transfer OF the build
ing, subject to the existing leases to the
Pittsburg Library Association.
In order to make the nature OF this action
clear to those who are not conversant with
the relations between the two organizations,
it will be necessary to review their respec-
tive history. The Library Association, un-
der charter of 1S49, has heretofore confined
Its functions simply to the ownership and
management of the public library main
tained in the Libfary Hall building. By a
special charter enacted in 1859 the Mercan-
tile Library Hall Company was organized
"for the purpose of erecting hall for the
use and benefit OF the Young Mems Mercan-
tile Library and Mechanics Institute,
which was the title then borne by the pres
ent Library Association.
For this purpose the Mercantile Libr ary
Hall Company was authorized to purchase
ground, erect thereon suitable buildings,
and according to the provisions of the orig
inal charter as soon as the buildings were
ready tor occupancy make a perpetual lease
to the Library Association.
PROVISION OF THE ACT.
The latter should collect the rents and rev.
enues from the buildings and pay them
over to the Mercantile Library Hall Com
pany to be applied first on the payment of
interest on the cost of the grounds and
buildings, and second for the repayment
of that cost TO the Mercantile Library Hall
Company. When that cash outlay was re-
imbursed the property was to be vested in
the Library Association in fee simple. A
supplement to this act in 1870, among other
notifications of the original charter, pro-
vided that the lease might be made "upon
such terms and conditions as may be agreed
upon between the respective corporations"
1t is under this provision that the action of
yesterday was taken.
As is well known the property was for
long time so unremunerative and burdened
with debt, that it was lett BY tacit agree
ment in the hands of the Mercantile Library
Hall Company, until sucn time as the re-
spective organizations should agree upon
action in accordance with the intention of
tha oh ef fha
the hands of the Sheriff for sale; but the
efforts of the present board of the Mercantile
Library Hall Company, elected while the
sale was pending, resulted in refunding the
entire debt and an arrangement by which
the first mortgage of $4,000 could be paid
off at the rate of $1,000 per annum.
The revenue of the building being at
present sufficient to meet these requirements
the Library Association Board at its regular
monthly meeting held on Friday passed
resolution Offering to take a lease Of the
building upon terms which should include
the payment of interest, expenses and the
$1,000 year for the retirement of the first
mortgage, with a dividend OF per cent on
the stock, the latter to be conditional upon
its being earned while the payments on the
first mortgage are in progress, and absolute
thereafter.
T.
There is no doubt that this offer was
hastened by the recent statement that ma
iority interest in the stock OF the Mercantile
Library Hall Company had been purchased
by the managers of the Bijou Theater, and
the inference that the company would be
managed by the new board about to be
elected more with view to the interests of
the theater management than for the pur-
pose of realizing the best revenues from the
building for the mutual benefit of the Lii
brary Hall Company and the Library. This
offer was presented to the final meeting of
the Mercantile Library Hall Company's.
board, and after some discussion resolution
was adopted, accepting the offer, and direct
ing the President Of the company to make
the proposed lease 10 the Library Associa-
ton.
Under this action the Library Association
is now in control of the building, but there
is an exceedingly good prospect that litiga-
ton may ensue before the control is con.
ceded by all parties. That prospect was
stated in general terms by the minority at
the meeting of the Mercantile Library Hall
Company's board, who opposed the action
taken.
A member of this board who voted for the
action which was taken, said: "The course
was one which we were for obvious reasons,
reluctant to take, as provoking disputes and
possibly litigation. But in the form in
which it came before us the majority con-
cluded'that no other course was possible. In
the first place, the action was one specifically
authorized, if not absolutely required by the
acts incorporating the Library Hall Com
pany, and when the offer was made by the
Library Association, We were advised by
legal authority that it was our duty to vote
in favor of carrying out the intent of the
charter.
THE STEP FORCED UPON THEM
"In addition to that the step was enforced
upon US in the interest of the Library Hall
Company's stockholders. It holds out the
promise of 4 per cent return on the stock,
which has never paid dividend heretofore.
1t has been announced by authority that the
controlling interest in the stock had been
purchased by the management of the Biieu
Theater avowedly for the purpose of further
ing that interest in the renewal of the lease.
1t is obviously the case that the management
OF the corporation under such auspices
would not be at liberty to rent to the tenants
who would offer the best rents, and therefore
would not be in the interest ofthe stockholders
as such. For the purpose OF protecting the
interest of all the stockholders alike, as well
as conceding to the Library Association its
rights, the majority of the board deemed it
their duty to take this action"
A member of the Library Associations
Board said, with reference to the same mat
ter: "We took this step, not so much with
reference to our occupancy of our present
quarters. but to protecVlarger interests. The
library is the second largest stakeholder in
the Library Hall CoIpany-it was the larg-
est before the late purchases were made
and very decided intimations have been re-
ceived that, under the management to be Sc