New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-05-20
SUIT INVOLVES MILLIONS.
HARLEM STOCKHOLDERS TAKE THE
AGREEMENT WITH THE CENTRAL
INTO COURT.

William Starr Miller and Martha L. r. Miller
stockholders Of the New-York and Harlem Raj
road Company. behalf Of themselves and OF all
other stockholders situated as they. have brought
suit in the Supreme Court against th9 New-York
and Harlem Railroad Company and the New-York
Central and Hudson River Railroad Company. The
involved is $4,000 year for 374 years or. IN
the aggregate. So. $50. 800
The plaintiffs seek aside the recent
agreement these two companies have entered into.
which. they alege. rn0difes the lease OF the
Harlem road to the Central road that II every year
gives to the Central company s22o60 OF the saving
in interest made by refundirg the s12co-0s9 per
cent consolidated mortgage bonds Of the Harlem
road with the issue Of the 3le per cent Harlem
bonds the market. The plaintiffs contend
that by the terms of the lease the Harlem road
entitled the entire saving of $4,000 each year
in interest resulting from the refundng OF the old
bonds at 3i5 per cent. They contend also that the
agreement by which s220Gs0 OF this saving
given to the Central company without eonsid-
Grafton and void. and was, they say imposed upon
the Harlem company by its directors, a majority
of whom directors in the Central company
also and who ii is alleged, acted IN the of
the Central company instead of the Harlem com
pany.
In December of 1898 Thomas Hitchcock. another
stakeholder, brought suit 20 enjcia the execution
OF the agreement settlement was made by the
payment Of large of money or its equivalent
it is alleged. and the agreement then carried
out.
IdpeTS were served IaSt MONDAY According TO
the complaint filed by the plaintiffs counsel
Glover, Sweezy & Glover, Of No. % William-st.
this. briefly. Is their side OF the case:
The authorized capital stock of the Harlem COM
was leased to the Central company for 4O1
At the execution Of the lease the Harlem company
authorized the issue of SD G0OG0O per bonds
They were issued and secured by a mortgage given
to the Union Trust Company. Of New-YOrk. as
trustee. The Central company agreed TO pay as
maturity May /. 1900. 1t agreed also TO pay the
principal on the bonds they matUred. If II should
not be paid by the Harlem company. In the latter
case the Central was to pay when the interest
should become due IL the time lad been extended
an amount equal TO such interest the bonds.
secure the payment of new mortgage bonds FOR
So. 100000 at 81 per cent interest year These
We're TO pay off the first per cent consolidated
bonds. Thus by enforcing the annual payment BY
the Central company the Harlem company would
Increase its annual income by $4,000, in that way
by ~ per cent The Central contended that n
was entitled to this sa wing In interest and az a
joint meeting of the Boards OF Directors OF the
TWO railroads a contract was approved BY which
the Central company should be released from paw
ing per cent. and should pay instead 5000 00sJ 70
cent interest upon the mortgage bonds Bv
TINS contract the Harlem company required
10 cancel its consolidated bonds. surrender IT'S
power to Increase It's capital stock or to borrow
money and to issue from time time, in place OF
the new bonds TO be issued 10 retire the conscII-
suitable Harlem property and bear such interest
ana TO De payable at such times shall be fixed
by the Central company, and when issued de-
llvered 10 the Central company.