New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-05-22
THE HARLEM-CENTRAL DISPUTE.
CAUSE OF THE PRESENT CONTROVERSY BE-
rwEEN TILE COMPANIES.

CAUSE OF THE PRESENT CONTROVERSY BE-
TWEEN THE COMPANIES
The New-York and Harlem Railroad Company In
1873 leased to the NewYork Central and HUDSON
River Railroad Company It's steam line extending
from Forty -second-st to Chatham, In Coumoia
County and the connection with the boston anu
Albany Railroad. The Central agreed 10 pay "
the Harlem stockholders per cent semi-ahtuaii'
on s1OOOoOOO OF Harlem stock, and to pay the IN
terest on S2ODo0cD Harlem consolidated mortgage
bonds, the rate being per cent per annum. ana 10
pay the principal at maturity, May l. l?W Inc
lease provided for an extension OF the pa! iie,''
OF tho sl2 100000 consolidated mortgage bonas oy ,e
issue OF new bonds. at the request OF the Cen'i''
bv the Harlem. at a rate OF interest to be agreed
upon the bonds TO be secured by mor's"5'
to be given by the Harlem on It's property
A provision in the lease az to the payment OF
the si2 900 900 consolidated mortgage bonds. or some
part thereof has been construed Dy inc mar '"
stockholders as enabling that company no" 10 eN
tend its consolidated bonds at reduced rate Vi
interest (3la per cent per annum) and 10 ciaiih
OF the Central during the unexpired term OF inc
,aasa (27 vears the payment to II OF the remaining
sis per cent OF the I. amounting to sizo'o" per
annum; or in other words the Central wouiu nav
TO paw at maturity the EXTENDED ponus anu or
per cent interest thereon until maturity anu aSo
pay the Harlem 100000 per anhum ior '' Wv"
uses ,. -.
IT. ca,,r,, renudiates this claim. and insists that
ia obligation to the Harlem Is only one OF IN
demnity against the principal and interest ot INC
consolidated mortgage bonds. and to pay only III
case Of extension such reduced rate OF interest as
the money for the purpose OF extension cah NC
obtained for. -
Some weeks ago each company entertained piopo
s,tions for an extension OF the $l2OOoOo loan ior ~"
years at 3lz per cent. Meetings were heiu ny .'e
drecors of the Central and the stockholders Oh the
Harlem the last-named meeting being heid LOT the
nurpose OF obtaining the consent OF the stockholders
to the mortgage me CentIai n nan,is hshbei
with rs general counsel Frank Looms, ASnpci
Green and Edward J. Phelps. late Minister 70 I-u5
land for the purpose Of asserting ana protecting 10
rights. ,u. dar 81. od,,ice Of such
counsel passed a series of resolutions asserting tne
position OF the company denying the right OF the
Harlem to any payment 70 IL OF aicoui r 20 anv
navment on account OF the same other than the
payment OF the reduced rate OF interest and the pr
cipal at maturity, and requiring the tarleW 10
other rate as might be agreed upon, ana 10 De Sc
cured by mortgage for the purpose OF retring the
old bonds. and instructng Its counsel 10 take all
necessary legal action IN me premises 10 preserve
and protect the rights of the Central.
AT the meeting OF the Harlem stockholders the
resolutions and demands OF the Central were served
upon the chairman of the meeting. and under advice
OF counsel the stockholders authorized its directors
to execute the new mortgage 10 secure the new
bonds to be issued by It, thus ratifying the position
taken by the Harlem directors and rejecting the de-
mands OF the Central
The next step will probably be an action or pro-
ceeding by the Central to obtain judicial determi-
great importance to the stockholders of each COM
pany.
In the one case the Central will be relieved OF
the annual payment OF $4,000. and in the other
the Harlem will annually receive that sum for its
own use and thereby It's stock, which Is at 300
will be greatly appreciated.