The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-06-30
NY.CENTRAL SUES HARLEM
10 uHO benefits BIZ THE
MORTGAGE REFUNDING.

,s ,nc Loan l. nj n l-o FER Cent. there's
at.O, 600 n Year Observation-Disclosures or
Lessor and lessee Roads 10th Claim 1t
lis Pcndens on the Grand Central Station.
whether tho stockholders Of tho New York
and Harlem Railroad Company or tho stock
holders OF tho New York Central shall benefit
by the rcfunding at gig per cent. OF tho $12,00O,-
600 per cent. consolidated mortgage OF the
Harlem Company Is the point to DO settled In a
suit brought by the Central against the Harlem.
The complaint was filed yesterday In tho SUI
prcmc Court in this department.
The complaint virtually statcs that the de-
PENDANT company has no active railroad bust.
ness now, rs It has In various ways disposed OF
its lines by lease. 1t owns tho Grand Central
Station and a road from there to Chatham Four
Corners, a branch from Mclrose to Port Morris.
and a lease of the Mahopac road. 1t also owns
the street car railroad from the City Hall to tho
Grand Central Depot and other street car prop
crty, but it's street car property Is under lease
to tho Metropolitan Street Railway Company
for 900 years. Part Of its steam lines is under
lease to tho New Haven Railroad, and it's limo
to Chatham Four Corners and its Mahopac road
lease are now leased to the plaintiff.
In order to consolidate It's debts and pay for
the Grand Central Station the Harlem made in
1872 q mortgage to secure an issue of $40. 000,-
wv IN DOnuS, anu On ApTn i, 1893, an oHroCHGnJ
was made on which this suit hinges. Tho Cen
trail by the agreement was to have the use Of
parts of the Grand Central Depot and tho limo
to Chatham Four Corners during the existence
OF the respective charters OF the roads. The
Central agreed to pay the interest OF z per
cent. on the S12 900. 900 of bonds and to stand
security for the principal. which was made pay.
able May 1, 1900. The Central also agreed to
pay, every six months, 80 on each share of tho
defendants stock, which, as the par value Of
the stock is $50, was a payment OF 8 per
cent. annually. The Harlem agreed not to en-
cumber its properties further without the con.
sent Of the Central. The contract, however,
provided for n renewal OF the Sl2, 600, 900 mort.
In part:
In case of the payment thereof tof the principally or
Of some or any part thereof BY the Harlem Company
thereafter pay to the Harlem company semi.annually
on on s sh,s days Ia sb when sa,d interest nepSs =, would ,Ss , SeSom ,S.s due and and
been extended, an amount equal to such interest on
paid by the Harlem Company so as fairly to adjust
the obligations Of the said New York Central herein
contained as to the annual rent on the said railroad
and property demised.
Negotiations were set on foot last spring to re-
fund this mortgage at GIG per cent, and the Cen.
stockhoiders should have the benea it' OF the tRsI ans sns
nual saving. Of $4,000 a year in interest. Tho
take the view that, refunding, or no refunding,
the Central must continue to pay tho Harlem
the difference between what interest IL may be
necessary to pay on the new bonds and the old
interest Of z per cent. The Harlem decided to
issue the new mortgage to the Guaranty Trust
Company to take up the maturing bonds, and
this action the Central seeks to ~enjoin.
The complainant asks that tho Harlem Com
pany be directed forthwith to make and execute
a suitable mortgage on the railroad property
and franchises demised by 1t to the Central un-
der the contract Of April l, 1873. and to issue
bonds hereunder to the amount Of $l2, 100000.
payable In gold on May i. 1000; that the Central
be decreed to have the right to pay and dis
gage bonds by the use Of a like amount OF the
and that an injunction be granted restraining
the Harlem road from making and issuing the
mortgage for $12.0 900. 900 to the Guaranty
Trust Company or TO any other person or per-
sons or corporation without the consent Of the
Central.
One allegation in tho complaint Is that tho
plaintiff believes that the defendant Is about to
create the new lien upon the lands and property
demised to the plaintiff without the discharge
OF the existing mortgage. intends to have tho
mortgage recorded in the several counties where
1t holds land and property, and to issue bonds
for 81 1900. 900, and the Court Is asked to enjoin
the defendant company from 30 doing.
Lawyer Frank Loomis for the Central Com
pany has filed a lis pendens against the Grand
Central Station and surrounding property
owned by the defendant company.
Lawyer Francis Lynde Stetson, counsel for the
Harlem road stockholders. was out of town yes
terday. 1t is understood, however, that a sub
stantial answer Is being prepared for the Har-
lem road stockholders.