New-York tribune., 1900-03-16
GRANT GETS DIRECTIONS.
RECEIVERS INSTRUCTIONS IN CASE OF
CRIMINAL PROCEEDINGS.
STOCKHOLDERS COMMITTEE WILLING TO
HAVE Mr.. GRANT FOR PERMANENT
RECEIVER = HEARING BEFORE
JUDGE LACoMBE TO-DAY.

RECEIVER - HEARING BEFORE
JUDGE LAcoMBE TO-DAY
Judge Lacombe OF the United States Circuit
Court yesterday sent to Hugh ]. Grant. tempo
rary receiver of the Third Avenue Railroad, in
an official memorandum, these instructions for
his guidance in case a decision should be
reached to institute criminal proceedings
against persons who may be charged with hav-
ing attempted wreck the company:
The Court mas read the letter of the District
Attorney (with nclosure) and entirely approves OF
the receivers proposed reply.
If in the past history of the Third Avenue cor
poration any one connected with II there nave
neen tTansgresslons AGAINST me laws Jaw % Of 9 ib6
and the fullest and freest opportunity should be
to examine the records Of all past transa ctons.
AoreoEer II Is Iunoanenta princlpIe OF crIInlnel
fore this Court will most willingly postpone such
be necessary for the discharge OF its receivers
functions until those authorities shall have finished
Indeed, / apprehend. from what appears TO be the
come the cares Of the present and the Immediate
future viii so fully occupy the receivers time that
he give but little attention to the past BY the
time We get trying the claims against the
road before the master documents will proba-
bly, be important; but long before that time comes
the examination of the State authorities will no
coubt be concluded and the records no longer sub
detailed receipts all documents loaned State
purposes If he would prefer an order OF Court
these documents foT which under the decree he
Is responsible he may apply for one: but l would
suggest so far as the State authorities may find
it practicable they may be examined at the office
evidence be produced in custody of the receivers
subpona However. despite these suggestions. he he
wiz not hesitate TO turn over to the temporary
document documents which it will hinder. delay
Of custody. He must part with no docnment how
ever, on the signature OF any clerk or subordinate.
District Attorney of the foreman of the Grand
astray.
DISTRICT ATTORNEYS ATTITUDE.
District Attorney Gardiner was asked vester-
day about the Third Avenue matter and what
course he would pursue regarding IT. He said
that he had received the report of Receiver
Grant, and also two letters from the receiver,
the nature of which he was not at liberty to
divulge. He refused 10 say what impression he
ha6 formed from the information he already had
at hand in its bearing on any action which the
Grand Jury might take. remarking that this in
formation would be laid before the Grand
Jury.
Receiver Grant, who seen at his office in
the afternoon, said he had not yet seen the
memorandum Of instructions from Judge La
combe, nor had he received another letter from
District Attorney Gardiner relative to the alleged
conspiracy against TIE Third Avenue road. He
ments in connection with the receivership At
the hearing before Judge Lacombe this after
noon Mr.. Grant will be represented by John NJ
Bowers. The Olcott committee, representing the
creditors. will be represented by Adrian H. Jo-
line, and probably also by Francis Lynde Stet-
son. The Stockholders Advisory Committee, of
which William l. Bull is chairman, formally
nOunced yesterday its willingness to have Mr.
Grant continued permanent receiver, and
al tl1a a,.-ll in tho
quest TO Judge Lacombe to-day for Mr.. Grants
appointment to the permanent receivership.
Application will also be made to Judge La
combe to-day, ii is understood for authorize
tion for the issuance by the permanent receiver
Of receivers certificates 1t is believed that the
first issue Of such certificates will be large
probably not more than S3y0o0Oo0 the future
plans of the receiver will depend to a considera-
BILE extent upon what steps may be taken by
the creditors and the Stockholders Protective
Committee, separately or jointly, toward formu-
lating plan for rehabilitating the company's
finances.
At present in the opinion Of leading fnanciers.
II is absolutely impossible to figure intelligenty
upon any plan Of reorganization, for
because no idea be had from the receivers
report of the earning power of the Third Avenue
system. The situation is complicated. too by
the fact that virtually the entire stocks of the
subsidiary companies are pledged as collateral
for Third Avenue loans.
1t is generally agreed that in any case a heavy
assessment must be levied upon the Third Ave
nut stock before a reorganization can be ef-
fected.
MR. CRIMMINS AMAZED.
John d. Crimmins said yesterday of Receiver
Grants report, as quoted:
I confess I DO not comprehend it. Some of the
items do not understand at all. 1t
the Court should have given greater time for the
expert accountants to complete and digest their
One thing that interests one is the surprisingly
large liabilities OF the subsidiary lines. That is a
really remarkable showing when ii is compared
with the assets Of the lines.
Take the Forty-second-st road for instance
IN whlch ! hold some stock. 1t is credited with
report states that the Third Avenue company % ad
vanced to this line 81 75s ,e2 a. which presuma by
State Railroad S-onrIiseon Of aHsarI oi me tlle
gave the cost Of this property S5,000000
Another matter disclosed by the receivers report
IS worth discussion. The Third Avenue company
has advanced to and spent upon the Forty-second-
st. line the sum of 81. 75s ,5G2 81. The receiver
o. seales eIse@here that this line considered a
II s3,274, ,076 70. These two sums make the com
plete of equipping the road over IS 900 00
There are twenty-five miles of track which would
bring the cost of equipment more than $500 600
mile. ! believe the Metropolitan equipped its
lines about 100000 a mile. The charge to the
Forty -second-st. lines seems excessive un-
less j includes items that do appear in the
published summaries of the report
believe legal test will determine that the
Ihird avenue system and not the Forty-second-
s. line must bear good part of the debt. The
Third Avenues right TO pile up such debts against
policy of Improvement astonishing. It went
anead heaping up millions of debts equipment
snd extensions without making any provision for
paving Tor them Wise men do n,, even build a
house that way. The community has never seen
anything 10 approach it,
the contract of the Third Avenue Railroad
Cornuany with NaughtOn & N for