Evening star., 1896-11-17
ARGUMENTS HEARD
Bondholders Object to the lexington
Receivers Plan.
Mr. WILSON TALKS TODAY
The Air Motor Experiments At
tackled in Court.
L r o B A b lie CO ST

Inc trustees of the bends of the F,ckiny-
ton and Soldiers Home Railroad Comnany
appeared in the Equity Court before Jus-
lce COX, today, by their ATTORNEYS Ma
lhaliei wilson, Adds B. Browne William
r. Matihgly ard John b. Larner to oo-
pose 'he granting of the authority asked
ioi ny receiver w. Kesley Schoepf i'm his
i'Seht report TO test the Hoadly- knight
iho'or' the details of which are familiar TO
The public. Receiver Schoepf was nreseu,
with his attorneys, Mr. John Ri6out and
Mr.. w. X. Marbury. Mr. Wilson openea
the hearing
justice Cox this afternoon listened 10
arguments I'm the matter of the report OF
Receiver W. Kesley Schoepf of the Belt
ana Eckington railway companies who
recommended that the offer of the Com
pressed Air Company of New York to
make a test of the Hoadley- nigat motor
De accepted, and that he be authorized to
send car body to Worcester Mass, to
nave 1t equipped with the motor. There
were present Mr.. Schoepf, his attorneys.
Mr. John Ridout and w. r. Marbury. and
Mr.. Nathaniel Wilson, William +. MAJ
nngly, John b. Larner and Adds IL.
Browne. who appeared in opposition 10 the
granting of the authority asked. Mr.. VIII
son opened the hearing. He read that part
OF the receivers report regarding the
proposition TO make the test with the
Hoadley motor and said that even If the
test were successful the question wopld
then arise where the money to eQuip the
roads would come from, and owing to the
Hiopeless insolvency of the companies,
iuhos could lie obtained only by receivers
certlncates. He went at some length into
the financial conditions of the compani.s
ssyins say tnere was no money in the treas-
~ ury 10 pay the interest that will fan due
In December and January, or to pay cl,li-
gatlons already Incurred for the payment
OF former interest
A very significant thing he said. was the
obISalon incurred under the terms of the
act of June 10. 1886. which required both
companies to begin to equip their roads
win compressed air motors within three
months from the acts passage. This time
ne SAID, expired before the present bill was
brought, and no attempt at such continent
had been made. He showed by the same
act that on December 10 the companies
would have no further right TO use horse
power and that by December ii they would
nave to put in compressed air or UNDER
ground electric power
He showed the impossibiity Of this being
accomplished and then went into q review
of the processes by which the roads were
placed in the receivers hands the request
for the authority to issue receivers certifi-
Gates for the purpose of equipping the
ROADS with air systems and pointed out al
legged discrepancies between the receivers
representations regarding the Porter motor
ana the facts they existed saving Mr.
Schoepf was not justified in making any
of the statements that he old in relation
thereto.
Against Experiments.
There was no ground, continued Mr. Will
son, for Mr.. Schoepfs recomme ndgiions in
his later report in behalf of the Hoadly
| motor, when the Hardie motor was in
working order and its owners had made a
better offer for finally equipping the roads.
But the merits of the motors were not un-
der consideration because in either case
it was necessary for the court to decide
and he claimed the court had no right to
Gecide such a question, as it was entirely
foreign to the Jurisdiction of a court OF
equity.
Speaking for the trustees of the bond
holders, said Mr.. Wilson, no case had ever
been known where a court of equity had
authorized the issue Of receivers certifi-
Gates which should be a prior lien to the
bonds outstanding against the property of
corpora lions.
The right of the court to authorize Ger
tftcates to meet the operating expenses of
the lines was not questioned. There had
been cases where certificates had been is
sued to complete unfinished roads. hut in
every case either the consent OF the bond
holders had been secured cr their rights
lad been safely guarded. In This case the
desire is merely to eNpend a very large
thing that has never been tried. and whose
efficiency cannot be determined. An ex-
perrin INT with one car, also, could not pos
Sibly ascertain the commercial value Of lie
system.
In support of this point Mr. Wilson
quoted Receiver Schoepfs own words
where he said, in his report. that the uIi-
derground conduits through which cleo
trio systems run have not been
operated for a sufficient time 10 prove
their value and called attention 10 the
conduit l. street that had been operated
several years.
Mr.. Wilson in conclusion said that the
trustee holding the first mortgage bonds
claimed that the court had 10 power to
authorize the issuance OF receivers certifi-
Gates that would be prior lien 20 the
bonds. save only for the operating OK
penses of the roads, without The fun con-
sent of the trustee. In support of his ar
gument Mr.. Wilson gave the titles of many
Supreme Court cases. which he offered as
authority for his claims, and from which
he read at great length.
Mr.. William Il. Mattingly and Mr.. Ridout
followed Mr.. Wilson.
ALLEGED FRAUD IN TENNESSEE.