New-York tribune., 1896-09-01

,,so,th the action however. and the appointment
~ a receiver were not surprises 10 those who
are acquainted with the finances OF the railroad
company.
The plaintiffs in the action against the railroad
company are James II. rockingham. james r.
Carter Edward A. ABBOTT. James Jourddr.
lanes O. Sheldon. Henry ]. Robinson Amelia
Dunbar the firm of August Belmont & Co ana
The firm Of Vermilye & 60. In the complaint.
which is a long and complicated document. 1t Is
alleged that the origin al capital stock OF the
company was S1,0o0,0o). but that during the
construction Of the road !. was increased to 3D.
10000 Bonds were issued by the company al
SS1UOO a mile. secured by first mortgage
Bonds 70 the value of Sl0Go0VO were issued at
par and the others sold to August Belmont
& Co. and to Vermilye q 60. at almost the same
figure Afterward a second mortgage was exc
cuted to secure q second issue OF bonds. also at
The rate Of S55OOOO a rlile. on the first bonds
for SO. .421. 600 5000 600 issued at g per cent
and the rest at per cent and of the second Issue
Of bonds So 600 issued al per cent.
These bonds all went MO the hands of August
Belmont James II. rockingham. James *. Car
ter. Edward A. Abbott and James Jourdan as
trustees.
The Fulton Elevated Isailroad Company Was
incorporated by the corporators of the Kings
County Company for the purpose Of continuing
the road through the 'own of New Lots lis
capital stock was fixed 1t 81 800 900 and a first
mortgage Of S5500NO a nile was placed upon the
road which was then leased to the Kings County
Company at the nominal rental Of $1,000 year.
Recently the connection between the Kinos
County road and the Brighton Beach road was
completed
The complainants allege that of the first mort
rage bonds for $3.43l 900. the company owns
$4,000. which it has hypothecated for loans.
The defendant also owns s., 543 600 Of the Full
ton Elevated bonds. which have also been
hypothecated. OF the second bond issue for
i3371000 the company holds Sl9S,O0O. OF the
second issue bonds amounting TO $3,112,00O are
deposited with the trustees. Other persons
hold So 900 of the second mortgage bonds.
BIG BILLS, SMALL INCOME.
The complaint states the Indebtedness of the
company as follows: Bills payable, secured
s9l1I00; on time, $500; open supply accounts
$1,000; wages, 81, 800; interest due September |
on Fulton Elevated bonds S63,575. The gross
receipts OF the roac, it is said. are little in
cess Of the expenses. and the available re-
sources are only $1,000. The company has
authority 10 execute any more mortgages. Its
toal dealers have refused to supply any more
fuel unless they paid something or account
Of their old oils Some of the larger creditors
have threatened to bring suits against the com
Iany and il is only on account OF the ienlency
q others Of the creditors that the road Is apIe
To continue. II is alleged that at present the
company is utterly unable 20 pay It's indepteo-
ness but that II Will probably be able 10 co SO
II the road is allowed to run. To this end the
application for the receiver was made That the
business OF the company might be protected
and the annoyance Of pressing creditors stopped
The order appointing the receiver proVioes
That all the property OF the company shail ne
turned to him. and enjoins the creditors
rom taking any immediate proceedings 10 col
lect their money General Jourdans bond was
hxed al 100000 and the Fidelity ana Deposi'
company Of Maryland has become his surety
TROLLEY LINES CUT RECEIPTS.
General Jourdan stated Yesterday that his re-
eeivership would only be temporary, as the
company would resume business in short
lime. and that outstanding obligations wouid
" settled promptly. The reason for the com
lsnys failure 10 meet its obligations is well un-
oerstood to have been brought about by the
snarp competition with the trolley lines. ana
also ny the heavy taxes imposed by the county
assessor The road has for long time been IN
u"uole with the county on account Of taxes
sro' with IT'S other creditors. manifestly could
w., "lthstand their many obligations. III ~
oene'en that the trolley cars have caused de-
unedse of fully 30 per cent in the receipts or
W. road The Brighton Beach extension
urenso about two weeks ago aided traffic some
d., out so far not enough to he more than
.IpP IN the bucket compared TO the outstanding
pu"'s ps que After long fight with the
g. 81 assessors, the assessment was hnaIly
d, Sl"o."D on each mile Of the company
Inc Officers say that the assessment
'"ouo ho' ne more than $4,000 a mile.
SKETCH OF THE ROAD.
Inc charter Of the Kings County Elevated
"oad was filed on January g. 1879 The actual
construction of the road, however. not be-
" en-. on tne Fulton-st. line. till the early part OF
''oo' The work had only continued few
'eehs when 1t was interrupted by legal proceed
"ss' The validity Of the charter and franchise
y 'he company bitterly assaed. One de-
.e Followed another. and II was not until March
- iSs', tina, decision Of the Court Of APP
.-ais favorable 10 the charter and franchise as
a. ruiton-st. removed all legal impediments. ON
april a. 1ssS. ; 10 miles Of the road had been
pnhpieted and open for travel between
,yt'ookiyn Bridge and Nostrand-sve. BY May 20
s iine was extended 10 Albany ave. on August
-, 70 Cuca-ave making In ell 41J miles of
.oed In operation. The Fulton Elevated Com
,eeny was organized that year and OH June !, |
.,ooV II leased q the Kings County Road
men INTO the Twenty y-sixth Ward far as the
rp>s'ng of Atlantic and East NewYork aves
. ar last AS the Fulton company extended it's
LACKS II leased them t. the Kings County
,dh .ydh TWO or three stations were added every
;eu until the road was extended from Brooklyn
n'idge to the city line at the westerly boundary
VI the town Of Woodhaven.
an the latter part Of April. OF last year pro
se-oings we're concluded by which the two com
IS. were merged into one under the name