New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-20
A RECEIVER APPOINTED.
HORACE ]. MORSE TO TAKE CHARGE OF
THE LONG ISLAND TRACTION Gu


OF PAPER sToCk'
I'll. ,.,aosrread criticisms upon the stock
watering methods employed in the formation OF
.he Long Island Traction Company "hich mas Il
.,ooor,. coni,al of sSOOO0OOO bore fruit yes'er-
a., :, IN. annointment by the United States
C,ro,,,, Cour, ~ West Virginia Of Horace j.
~ &c recoive Mr. Morse is member Of the
WI :. er,, ~ 4 NJ Kidder e Co. and was
40 ., .ba Clarendon Hotel Reorganization Com
,,,,,ea annointed about three weeks ago The ap-
,,oa,,or for the appointment of receiver was
mad. nv Thomas Moore the lawyer. MIR. Morse
mas chairman of the Reorganization COMMITTEE.
and his resignation of that Craftsmanship was
nromptly followed by the appointment Of j. u.
Jenkins to the place. Mr.. jenkins is vice-presl-
dent Of the Traction Company. and his opinion OF
the company. in It's present condition. may be
gathered from his declaration TO Tribune re-
porter that 1t wat stencil in the nostrls or the
public
When Judge William j. Gaynor, Of the supreme
Court whose letter to the State Board or Aro,tra-
ton shed light upon the phenomenal stock-wa'er-
ing Of the traction company. was Informed OF the
receivership yesterday and pressed for an express
sion Of his views on it, he said:
| could not add ANYTHING to my letter to the Boarn
Of paper stock has done the morals Of TINS Sol he
ssnseess strikes that ever occurred it made every
one uneasy Could YOU expect n1nes b M thew saw
few men engaged in creating n,Ik II is the cry
hated values 0gt e OF ' s oH nar this Country
less stopped. corrupt ana destsof our not
Know Know this this absolutely?
NOTICE TO THE STOCKHOLDERS.
The appointment of receiver will without
doubt. as Vice President Jenkins remarked. re-
suit in taking the water out Of the company
There will he complete reorganization on
reasonable and honest basis. \ notice was sent
TO the Long Island Traction Company stock
holders last night announcing the appointment
Of receiver, and adding in part
Before receivership at this time va, eo1 81. m
holders of the collateral trust notes (Which your
in its previous GreTpT Of
subject e the raising by yoSr 1887 committee OF the
Such cooperation. in brief, ia tfat moneys con-
tributed by stockholders and others shall. under
Coatera trust note holders in any
reorganization Of the traction company 1t is now low
money. TO pay the rental and other obligations to
the receiver instead of TO the company as BEFORE
outlined The receivers certificates II ISSUED ana
purchased will be held by your committee ana as
posed Of for the benefit and protection or the con-
lrihutors of moneys and of the asserting note
the amount 81 per share heretofore requested and
thus participate to the Jules extent IN Mace 1he dement's
The participation receipts. 10 be issued by the
ga inst Meanwhile contributors will receive the
receipt OF either the First National Bank OF Brook
%ew-York Guaranty and Indemnity Company. OF
New-York, to be exchanged for The committees re-
cents as soon as same are printed and ready for
ne Term of deposit is extended to Monday. the
y G. Jenkins; william H zIegst; J. 9. Pe, timer
and Marshall 5. briggs. committee.
President Daniel F. Lewis, of the traction COM
pany. will send notice TO the stockholders TO-
day, formally apprising them OF the appointment
Of receiver. urging the stockholders not to part
with their stock. and asking for cooperation
with the committee
The announcement that receiver had been
appointed for the company caused no surprise in
Wall Street. and the general opinion was that the
than under the present MANAGEMENT. On the
Stock Exchange it's price jumped up per cent.
ENGINEERED BY H. b. HOLLINs & co.
The deal by which several OF the Brooklyn
face roads were consolidated into the Long Island
Traction Company was engineered by II. B. Hol-
lins e. Co., of this city, and the New-York Guar
anty and Indemnity Company in 1893. The pres
ent trustee for the company is the Hamilton
Trust Company.
The company was organized under the laws Of
West Virginia in March 1898, with capital stock
OF $50 900. in order TO operate the Brooklyn
City Railroad Company, and in June 1899. II took
possession OF that property under a 999year lease
guaranteeing 10 per cent dividends on sl2,OOOO0O
stock. The lease was nominally TO the Brooklyn
Heights Railroad Company, but practically to the
Long Island Traction Company, since that COM
pany owns the entire capital stock of the Brook
lyn Heights Company and has guaranteed pay
nent OF dividends 10 lessor by special funds In
hands OF the trustees. This fund is kept invested
in bonds satisfactory to the lessor and the lessee
The original amount was 100000. but in July
1894 $3.50 900 used (as permitted by the lease
70 pay the Brooklyn City rental.
In January, 1894. the Long Island Traction
Company acquired the entire capital stock $1,000
% rh,tr
road. the Jamaica and Brooklyn road and the
Broadway ferry and Metropolitan-ave.
WHAT THE SYSTEM INCLUDES.
The entire system includes ?4j miles Of road
and there arc l73 n lies projected. The roads in
the system are the Brooklyn City Railroad.
which was organized in 1853: the Brooklyn
Heights Railroad: ant the Brooklyn. Queens
County and Suburban Railroad
At meeting Of the stockholders on February
20, this year. the committee of six was appointed
TO investigate fully the management and the
affairs Of the company. and to formulat. a plan
for reorganiZIng the property.
OF the $4,000 600 stoc Of the Long Island Trac-
ton Company, 100000 was paid to the syndi-
cate which franciered the dea. and 12700Ao60
offered to the stockholders Of the Brooklyn
City Railroad at slo share. the laws Of the
State under which the company was Orga nized
allowing the sale Of the stock at less than pa.
OF the proceeds Of thu transaction. $4,000 900 was
deposited as security for the Brooklyn City Rail-
road lease. The companys assets include the
following at their par value: Brooklyn Heights
Railroad Company 100000 Brooklyn. Queens
County and Suburban. 81 900 00O and the guar an
tee dividend fund $3.7500 0G The report OF the
Brooklyn Traction Company for the year 1893
1894 showed gross earnings, A3o3.l11; operating
expenses s2673,392 net earnings. 81 500 725: other
income $1S9339: making the total receipts 81 sl9
O64 Against this were interest. 500 ga. rentals
sl,434,94l; taxes. s3OS 6?7: making a total Of ST.,
1s45l2. ard leaving a surplus OF s%5j2 The
earnings far this gear have been below
penses
Inc officers Of the company ID. +. Lewis
president, and w. Rogardrs. secretary and
treasurer.
TO MAKE LINCOLY's BIRTHDAY 4 UOJIDAy
Augusta Me. March ls-The House to.dav nassed