The sun., 1896-09-01
KINGS co. ELEVATED FAILS
TROLLEY COMPETITION TOO KEEN
FOR n.
Gen. james Jourdnn, President OF the Cous-
pany, Appointed Receiver-1ndebtednoss
More thnp 100000 and n valuable Cash
Only oS,OOO-HIstory or the Read.

Gen. james Jourdan, President OF the Ceu-
pany, ApPointed observation-disclosures Sc
More thns $500 900 and a valuable Cash
Oniy 0S,ooO-HIstory OF the Read.
An order signed by Justice w. w. Goodrich
Of the Supreme Court was filed yesterday morn
ing in the County Clerks Office in Brooklyn,
appointing Con. James Jourdan receiver Of the
Kings County Elevated Railroad Company. of
which he is the President Tho application for
a receiver was made By the law firm of Tracy.
Boardman & Platt, and 1t received the consent
of Walter O. Percy. counsel for the plaintiffs In
the action. The PLAINTIFF are James II. Froth-
inEham, James X. Carter, Edward A. Abbott
James Jourdan. James o. Sheldon. Harry j.
Robinson, August Belmont & Co.. and Vermlye
& Co.
The capital stock. according to the aflldavits
submitted. was originally 81, ,o00. 900. and was
increased subsequently to S3,250,0U0. Bonds
were issued at the rate Of $55O.000 n mile.
secured by a first mortgage. Bonds to the
amount of S1,0oo,0oo were issued at par. and
the remainder were sold at about the same rate
to August Belmont s. Co. and Vermilyo & Co.
A second mortgage was executed to secure q
second issue OF bonds. also at $500. 900 mile.
or the first issue So, 900. 900 were at per cent.
and the remainder at per cent. and of the
second S3,377, 900 bear Interest at the rate of
per cent.
The Fulton Elevated Railroad Company and
the Brighton Beach Railroad Company wero
subsequently organized to extend the road aud
became parts Of the Kings County Company's
system. and the three roads are now under tho
same management. The Indebtedness OF the
company is stated as follows: Bills payable Sc
cured. sell, 200: on time. $500: open. supply
accounts, 100000; wages. $1,000; interest due
on Sept. on Fulton elevated bonds, S83. .575
The available cash resources are only $4,000
and for some time tho gross receipts have been
very little In excess OF the expenses. 1t has
been, as the afhdavits set forth, only through
the lenient conduct of creditors that the COM
pany has been able to continue its operations.
The threat of some of the creditors to institute
legal proceedings resulted In the application for
a receiver.
Gen. Jourdan furnished bond for 100000
through the Fidelity and Deposit Company OF
Maryland.
The Kings County Elevated Railway Com
pany was chartered In January, 1879. but owing
to litigation actual construction was not begun
or the Fulton street line until 1886. Work was
again stopped by lawsuits. and the legal i'm pedl-
ments were removed only by decision OF tho
Court OF Appeals in March, 1887. The first
section OF the road. about three miles long, be-
tween Brooklyn Bridge and Nostrand avenue.
was opened on April "a. 1883. and on Aug. 20
the extension to Utica avenue was opened max
Ing 4.l 8 miles ~ operation.
The Fulton Elevated Railway Company was
organized to extend the Kings county road to
Jamaica, and was leased TO tho Kings County
Company for ninety-nine years from June l.
1850, upon u guarantee OF prime pal and interest
OF its bonds. This road was completed In July.
1894.
In 1895 the Kings County Elevated Railway
Company WAS reurganized without foreclosure
and II absorbed the Fulton Elevated. Its capt.
tai stock was increased from S3..50.0 900 to
Si15O,oO0 in exchange for like amount of
stock of the Fulton Elevated. Under the re-
adjustment plan second mortgage collateral
trust cumulative income bonds were Issued
future needs, and Sass $50 "B" bonds for old
funded scrip OF 1890.
In December last the company agreed TO take
lease OF the Brooklyn and Brighton Beach
the Franklin avenue connection was made. AL
though this connection gave 1t an increased
business. the system has suffered severely from
the competition OF the trolley lines. and its re-
ceipts have been steadily declining. It's con.
fession of insolvency WAS therefore not q sur
prise. The company has also been for some
time Involved In litigation with the Brooklyn
city authorities over the question OF taxes. and
n sale OF the property by the Register OF Arrears
has been prevented only through injunction
proceedings.
director of the Kings County Elevated Tho
other directors are William A. Read OF Yer
miiye 4 Co., Edward A. Abbott, James U. Shell
don, Henry J. Robinson. and s. Newton Smith
jourdan OF Brooklyn. and James Il. Carter OF
Boston.
Jusrioe Goodrich's order directs that all
moneys collected must be deposited by the re- |
ceivcr in the Brooklyn Bank. The company
has no authority to execute any more mort
cages, and IT is SAID has recently failed in an |
attempt TO borrow 100000. Even the coal
dealers who have been supplying the company |
with the fuel to run the engines nave refused |
TO furnish any more until they get part OF what |
Is already due them from the road