Evening star., 1896-11-16
SEVERE CHARGES
Strong Indictment Filed Against
Elkins, Widener and Dolan.
how THEY MANAGED THE BELT Line
Their Object in Having the Hoad|y-
Knight Motor Tested.
STORY OF RAILROADS

| The most important contribution to the
| history of the deplorable wrecking of two
| great street railway companies was made
today. when Attorneys Nathaniel Wilson
| and A. B Brown. on behalf Of the Ameri-
can Security and Trust Company, the trus-
| tee of majority Of the bondholders OF the
| Belt Railway Company, filed an answer in
the suit of Matthias Ament, trading as NJ.
| Ament & Co., against the Belt Railway
| Company. Samuel r. Bond. trustee. Chas.
| H. Cralgen, trustee, and the American Sc
curity and Trust Company trustee, de-
PENDANTS. While the document Is an answer
to the bill Of complaint 1t also takes into
| consideration the receivers report filed last
week by Mr.. w. Kesey Schoepf. and
| charges that the laudatory praise bestowed
| upon the dley-Knight compressed air
| motor was inspired in no inconsiderable de-
| gree by the fact that Elkins, Widener and
| Dolan are directors Of the Compressed Air
| Company which owns that invention
II will be remembered that Mr.. Schoepf
| was ordere d by Justice Cox to examine into
| the various systems of compressed air and
| underground electric power, and report
thereon to the court Mr.. Schoepf. in his
| report, enumerated the systems Of COM
| pre- ssed air. including the Porter. the Har-
die and the Hoadley Knight compressed
| air motors, and recited the propositions
| made by the companies owning these In
! ,venuons to make tests of their respective
| motors, ard also to entirely equip the Belt
and the lexington lines with their systems
| if found satisfactory. The Porter company
| equipment of the lines. The American All.
| Power Company which owns the Hardle
motor, offered to furnish a motor for S9,@si
| and equip both roads for sas1,0tkD. and the
| Compre ssed Air Company of New York.
| which owns the Headey motor, offered to
make test for thirty days free of charge
and equip both lines for $J,s,oU-
| Mr.. Schoepf strongly favored the Hoadley
motor In his report and requested permls-
| sion to send car OH to Worce ester, Mass.
| to be equipped with the Hoadey motor.
The answer says that the indebtedness to
| NJ. Ament 4 Co.. on whose suit the re-
! ceivership was Brought about, WAS in
cprred by the railway company only five
| days before suit was brought; that judg-
| ment was entered by confession without
| previous authorization by the beard Of
| directors of tile company.
Everything Dese Ina One Day.
1t Is further declared that on the sa me
day that the bill or complaint was filed the
answer of the defendant railway company
was also filed. admitting the allegations of
the bill and conGehting TO the appointment
of receiver for the property. 1t is charged
that said answer was signed by the vice
president of the company. but was not
| made under ner attes;ed by its corporate
seal, nor was It's making and filing authsr
| lied by the board of directors at any gen.
eral or special meeting. 1t is declared that
d. NJ. Newbold. who was appointed
| ceiver in the cause or the day on which the
| complainants bill was filed. was at the
| same time the president and director of the
| railway company and that w. Kesley
Schoepf who was appointed receiver when
| Mr.. Newbold resigned. was one Of the d.
rectors of the defendant company and vice
| president and general manager up to the
time of his resignation on June II. 1S,B.
Thn dafn n1oyy Of GNl
and had no knowledge of the entry of said
Judgment of the filing of the complaint no:
of the application for nor of the appoint
ment of receiver until after such receiver
had been appointed. and had no oppor-
| tupity to make any objection or oppos ton
| to such appointment.
| Several technical charges In the bill of
| complaint are admitted, including the eley-
| enth paragraph. which refers to the act of
| Congress Of June ~. 1885, whereby the de-
fendant railway company in three
| months from the passage of the act to be-
| gin to equip Its road with compressed air
| motors. and to complete such equipment
| and the test of the same within the time
| specified by the act. Tha defendant trus-
teo denies on Information and belief that
| the process OF equipment has commeHc ed
| or has progressed to a point where the cars
are nearly ready to he placed in operation
| and also denies on Information and belief
| that any arrangement whatever favorable
| or otherwise. now exists between the de-
| PENDANT railway company and q responsible
firm whereby provision has been made for
! tho equipment OF the road and for a thor
| ouRh test of the system Of compressed air
| motors without any charge therefor The
answer also denies that even II a reason
| apie assurance can be given Of the said
| proposed test that the cars can he mt on
| the railroad within a very short time or
within the time prescribed by the act of
| Congress. and also denies that the said svs-
| tenn referred to. II successful. will be about
| nalr as expensive the horse power sys-
| tenn and will provide rapid transit and win
| AFFORD sufficient revenue to afford means
not only t. operate the road, but to pay
an OF lts Indebtedness. 1t also denied that
| the court has jurisdiction to take charge
| or the property Of the railway company
| ana to appoint receiver therefor or to
provide for the operation of the said rail-
! road. 'N
Some Charges.
Then comes some interesting history.
The defendant trustee AYERS that in the
| fall of 1892 Messrs. p. A. b. Wida,er
| Ihomas Doien and VIM. l.. Eikins of PhiIa-
| deiphia became the owners by purchase
| OF majority of then outstanding capital
| stock of the defendant railway company.
| to w.t. 5.W3 shares, and about February
or March of 1888 assumed control and
| management of the property by subst titu-
| ton upon the board of directors of per-
| sons of their choosing including H. Mum
| nikhuysen, who was elected president
| thereof and w. Kesley Schoepf, who was
| elected vice president, and who has since
| continuously and does now hold said office.
| the said Munnikhuysen being succeeded as
president by d. NJ. Newbold, who mas
since continuously and does now hold said
| office. 1t is stated and the report of Mr.
George White president of the road at
| that time is filed with the answer that at
| the end of the fiscal year Immediately pre-
| ceding the said purchase, or on the ;0th
of April. 1872, that the company had no
| floating Indebtedness and after having paid
dividends during the year amounting to
5000 had on hand cash balance of
$S,CO995.
! The defendant had recently caused an ex-
| animation of the books of the railroad CON-
| pany to be made by Stuart H. Patterson of
| New York, whose report Is also filed. which
| shows that by an analysis of the books of
| the defendant railwaycompany on December
81, 1884, its liabilities were $40, ,t67, and its
| assets were $S17.171.72, leaving Jaiicit of
| $16 $685. -, and that April 30 1896, the
liabilities were sS27 .929.97, the assets $G77.-
! 1866, leaving a deficit of $l5O,S11.41. On
| May /, 1896, the liabilities were 81 rs OUj 5j
| assets, &43, III .46: leaving deficit of $6S1 =
| T7S.1O, while on September ~, 1896. the liza
bilites were 81. .144.gS5.0S assets, $436, ,675 A.
leaving a deficit of s70S.309.64. 1t is fur
ther stated that the affidavit of Mr.. Pat
| tarSon showed that dividends ha,, haon ,,a A