New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-08
WILL TIE BOND BIZ FORfEllfD'
,,Ir IEx1N,:Tc N.AVE. FRANCHISE QUESTION 7
ne SETTLED By THE COURTS.


Controller Myers has sent TO Cooperation JUN
sci Clark the bond Of the Lexington Avenue ha"
road COMPANY for $4,000, with request - pro
coed with IFS forfeiture the city. The r'hd "'AN
signed BY William Remscn, president OF te hcA'"s
ton Avenue Railroad Company. and Henry ha'''
vice-prcsidcnt Of the Third Avenue Railroad ON.
panv The Controller holds that It was forfeited
by tie companys failure to comply WIN thc "'"''
OF The sale Of the Lexingt"n-nve cable iT"r
cnise on Friday when the company refused to De
,,,sit a check for 81 900 .0oo as was required.
Edward Lautcrbach, the compahy'' couh7o "'"'
the Representative. Of the Third Avenue company
bidders at the sale, said yesterday that the company
would contest the forfeiture Of the bond III ule
>,urts. The Controllers rnnng, he said, WAS errone-
ono and indefensiblc In the first place it would
Ia contended that the Controller no. supported
nv the law in his demand for the heavy d'po-i oil
81 900 600 and until that plint was deciu'd as'l''
his company Mr. Lauterbach considered II inc law
full purchaser Of the franchise Tie second S"ie'
after the franchise had been knocked down to him
md mt I'D again because Of the failure 10 put up
the 81 100000 deposit. was, in the lawyer opinion
null and void
In hI, opinion delivered Friday morning. Judge
Barrett said that the condition requiring $i'ooo'oo'
70 be deposited subject Ia drafts for the cohs'Fuc
ton OF the road was mot UNREASONABLE Oh Tue
contrary the Judge said That 1t seemed to DC pFa
dent REQUIREMENT 10 insure activity In the oihs,Fhc
interest Of those who may be inimical to the ROAD
The condition docs not In reality require The com
petion OF the road before the expiration Of the s'"t
uory term OF three years, but simply provides that
IL the road IS not built within two years 50 much
of the deposit AS shall be left shall BE- fOilcl"'l
That only requires the expenditure OF The iuu
amount In two years, and, the road VIII coSs AT
least S. 900 OOO II is not an unreasonable conduoh
Mr. Ianterbach will 60 TO Washington to dag ana
will not return until Tuesday. lie -nd yesterday
that bc considered himself the owns Of ge lrhci%c
and he did not appear TO be worried about 'hc
so 600 bond that lie had placed IN tle hands o
the Controller OF the city. lie sAld ifAhkiy tiht
there would considerable litigation over IN; us
nositiOn OF the LeXingtOn-ave. franchise ara cN-
Dressed doubt whether IL would survive that lli4a
lion Mr. Lanterbach thinks that the i'mrd %
inctonavc terms Of sale that Il was almost imPo,-
s,,Je for any interest except that Of The l'iladel
mia traction syndicate 20 be able to bid for the
franchise on business principles. The division OF me
r,te of fare on the Lexington ave. extension WIN
connecting roads such as to render 1t lmpos-
siIlc Car any interest except that OF the HOUSTON
Wcst :trect and Pavona Ferry Company tthe coipo-
rotion operting for the Metropolitan traction sydl
cntel ~ secure road and operate II with any re
Gard In tI,c welfare OF the capital Invested Mr.
1anterbncb would not outline the legal proceedings
which probably will be undertaken some time this
vcnk int he expressed the belief That the Lcxing
ION. ave road would not be constructed under the
Conditions prescribed by the city authorities because
100 many Of them lie thought. were In cOntmven-
lion OF The law and Of principles OF equity.