The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-08-31
An T. ROAD FAILURE
The Kings County Company
Goes Into the Hands of
a Receiver Friendly
Proceedings.

BROOKLYN. Aug. 81, iS96.-The Kings
County Elevated Railroad Company Of
Brooklyn went into the hands of a re-
ceSver this morning.
The application was made to Supreme
Court Justice Wilgiam w. Goodrich. and
he granted the order.
General James Jourdan, who is the pre-
sident Of the company, and was also one
of the petitioners, was appointed receiver.
All of the parties concerned in the ac-
ton consented that Genera Jourdan be
appointed.
This fact, taken with the other, that he
is ais one of the plaintiffs and in a sense
the defendant, gives the suit the nature
of a friendly proceeding.
The petitioners this morning were
James H. rockingham, treasurer of the
company; James Jourdan. president; the
banking house of August Belmont & Co.,
the bankers Vermilye & Co. and others
who were trustees under a trust agree
ment that was made some time ago, by
which the debentures were issued to re-
place bonded Indebtedness.
The petition of the plaintiffs alleges that
the business of the company has fallen
Oh Sitdty, dIu liey assert icIlal t1S III
roads made by the surface railways of
the city since the Introduction of the troll
ley system have reduced their receipts
to u an extent that for a long time
past they have been barely able ito pay
running expenses.
They also assert that the property has
been assessed too high for the purpose of
taxation that they are unable to meet the
obligations to the city government.
An action is now pending in the SUI
preme Court of Kings county for the pur-
pose of compelling the Board of Estimate
and Apportionment to educe this taxa
ton.
In the face of all this, they say, many
long outstanding obligatso ns have be
come due, and are pressing for settle
ment.
These include debenture and bonded in
debtedness, besides other fixed charges.
The petitioners declare that they have
, en~deavored to come to a private UNDER
standing with the creditors to allow the
company to continue its business with
out the intervention of the courts. Some
OF the creditors expressed "a willingness
10 compromise, but q majority insisted
either upon prompt payment or a re-
ownership. For this reason they found
It necessary to ask for the protection of
the courts.
The application on behalf of the trus-
tees was made by Tracy, Boardman &
Plat, of this city.
II counsei Tor the company, acting
uIuer instruction from the Board of Di-
rectors, consented TO the rece worship,
ana agreed that General Jourdan should
be appointed.
The Kings County Elevated Railroad
has five and one-half miles of
track IN the city of Brooklyn. The direc-
tors assert that this is worth s85. 900 a
mile, exclusive of franchise. The Board
81 assessors of Kings county contend
lnat me property is worth very much
more than this.
Up to 1893 the company was capitalized
Tor S.2oe0oo. but its capital has been IN
crsaseu until It Is now 81. $50, 900.
coup IL The company has AS passenger
eoacnes. II cost over $500. 600 a year to
maintain and operate the system.
neiore the trolley cars became so popu-
q n ~ brooklyn the road carried about
S0;g0o.eOe passengers a year.
me success of the trolley. however
reduced this business over so per cent.