New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-10-24
THAT 1000 PER CENT BID.
JOSEPH H. CHOATE SAYS IT'S A PLAN OF
THE "HUCKLEBERRY'' TO DEFRAUD.
THE PEOPLES COMPANY WANTS THE AWARD RE-
STRAINED UNTIL AN ACTION TO SET THE

THE PEOPLES COMPANY WANTS THE AWARD RE-
STRAINED UNTIL AN ACTION TO SET THE
BIDS ASIDE CAN BE DISPOSED OF.
The case OF the Southern Boulevard Railroad
Company against the Peoples Traction, and the
North New-York Traction companies. and the
Controller to restrain the latter from awarding
any bid on a franchise OF the road in the Twenty
third and Twenty-fourth wards antil an action TO
set the bids aside could be disposed Of brought an
array OF eminent counsel before Judge Beach In
the Supreme Court yesterday John NJ. T1erney
appeared for the plaintiff company. and Joseph II.
Choate. Sherman Evarts and Breen Colahan
for the Peoples Traction Company. and Thomas
L. Hughes for the North New-York Traction Com
pany.
Mr. Terney opened the argument. He said that
the motion to continue the temporary injunc-
ton granted by the Cour; against the Controller.
and wanted the Injunction continued until the de-
termination of the action TO have the bids made
at the sale Of the franchise aside. He skeched
the history OF the remarkable sale. and stated
that the North New-York company was incor-
porated on September &c last while the Southern
Boulevard company had eight miles OF road In
operation for several years On October g. he said
after two adjournments. all that are allowed under
the law, the sale commenced. The Peoples
bid was one-eighth, the Southern three-eghths the
North New-York nve-eighths, and then the plain
tns bid ga and stopped The bidding was then
years and 90 per for three years. which, with
the percentage OF three and five per cent required
under the law for these periods. made the bid 100
per cent. or all the receipts Then. Mr.. Tcrney
said. the sale degeneraed into farce the Peo-
pies finally bidding $50 per cent, or nearly seventy
times the total receipts. Mr.. Terney SAID mat MS
company had come into court showing that II was
operating a road, that the others were not acting
in good faith. and that the Peoples company had
no equipment cars or anything that w9 ma shp Gs
therefore asked for the continuance OF the lnjunc-
pany had bid was all that could probably have
been bid for such franchise.
bidding dbl We're the Peoples and the Union liuek
leberry" road He read the objection filed by the
hey had Objected to the North New-York company
ss n soed istb and was Controlled by the uck
eberry''; that they had a capital OF only s2io&go
Of road He said that the road was a creature
of the Union, and that the bidding was not that
The southern Boulevard road. he said, was also
creature Of the Union, and was now being 3per-
ated by it. Their scheme was to seize the fra ran
Choa;e then quoted the law of 1892 known as the
absolved from paying any percentage to ne city.
but any road that it might consolidate with:
visions Of the Constitution" said Nj Choate. "and
e enough iS 1e aa the NAV aw but at present stands
In this way any amount BID by either OF these
two companies. would be extinguished under the
Mr.. Choate contended that on the statement Of
I
had interest in subsequent bids. He said that
the Peoples had a connection with the West
chester and Connecticut Railway Company, and
that it could well afford 70 pay what it had bid
the traffic between the Bronx and the Harlem
rivers and that his road could afford to give its
full receipts 10 get into New-YOrk connection
OF the Connecticut road. and that 1t meant to
stand by the bid IT had made
ASSISTANT Corporation Counsel Dean stated that
the law had been compiled with by the three com
panies IN that they had deposited bona with the
Controller OF $JO,yD cash 10 carry out the pro-
visions of their bids; He said that the auction
90 on and contended with Mr. Choate that the
Southern Boulevard company had no standing as
IL had stopped al 3i2 per cent and had practically
acquiesced when the bids up TO 20 per cent
when II protested. He said that other roads had
paid As high as 80 per cent to get into the city
White there is no doubt that after 100 per cent
the bidding degenerated into "A farce" said Mr.
Dean yet the dignity Of the Controller will be
more than appeased by the $4,000 bond which the
successful bidder Will forfeit should he not comply
with the provisions Of the law"
Judge Beach reserved his decision.