New-York tribune., 1900-03-01

and were due four months later at per cent.
and call for face value OF 100000. Payment on
the promissory notes being refused the Old
Colony Trust Company represented by Francis
Lynde Stetson, Adrian H Jolne and w. D.
Guthrie. asked for the appointment of ex-Mayor
Hugh ]. Grant receiver on it's behalf.
and also In behalf Of all creditors OF the Third
Avenue company who might hereafter Join in
the prosecution Of the suit.
Judge Lacombe granted the application and
required Mr.. Grant TO give a bond of $25OOOO
which furnished by the Lawyers Surety
Company. Immediately after qualifying as
temporary receiver. Mr.. Grant took a Third
Avenue car TO the offices of the company. at
Third-ave. and Sixty-fifth-st.. where he formally
assumed charge of the company's property.
The appointment Of Mr.. Grant was similar to
the practice in the Erie Railroad reorganization
a few years ago. All the parties interested In
the Third Avenue road, including the Board OF
Directors and the persons who have filed liens
against the property. concurred in asking for
the appointment of Mr.. Grant as temporary re-
ceiver, and It was agreed that In the course OF
the next two weeks there will be hearing. at
which Mr. Grants appointment will doubtless
be made permanent
THE BILL OF COMPLAINT
The bill of complaint Of the Old Colony Trust
Company. which Incorporated in New-York
on October 6. 1853. owns many surface railroad
lines IN the counties of New-York and Wesy-
chester. 1t also says that the expenses Of re-
cent extensions and improvements now aygre-
gate the sum Of S21 600 600 and that the cor
poration is unable to pay this debt: also that
many creditors pressing for payment and
the Old Colony Trust Company believes that
they VIII bring suits and levy executions the
rolling stock and materials OF the company
Next full list OF the recent mechanics liens
filed against the Third Avenue Company is
given, to show the partial Indebtedness of the
corporation. The bill also states that a large
part of the floating debt consists of loans made
by various banks, trust companies and indi-
viduals. many Of which loans are wholly un-
secured. others being secured by deposits of
various stocks and bonds collateral security
1t declares that the securities OF the corporation
which have been deposited as collateral for
loans are now unduly depressed below their real
market value. and should the corporation be
requested to take up these loans it would be
unable to do SO. and could not secure an extern
sion OF time.
The complaint further says that there is great
danger that the securities held as collaterals
for loans may be thrown upon the market and
sold prices below their real value to the
Trust Company and other creditors Of the Third
Avenue Company It is also stated that there
is likewise grave danger that if this should be
done the various connecting lines which are now
owned or controlled by the Third Avenue cor
poration might fail into other hands and the
Third Avenue system be broken up.
In the event of the sale Of the collateral tbA
bill of complaint alleges, the company's system
would be dismembered and it's valuable ease
ments. franchises and contracts including its
mail contract with the Government. would De
lost.
The only way for the continued maintenance
of the Third-ave road and its connecting lines
the bill continues is by the uninterrupted use
of all its lines railroads and rolling stock which
in good condition. save that the change OF
motive power on its main line has not yet been
completed.
In the last year. the bill OF complaint states.
the Third Avenue Company and the lines which
1t controls carried nearly one hundred million
passengers, and also the United States mails,
and it employs twenty-seven hundred persons
II is therefore of great Importance. it is added.
that the system be continued to be operated for
the benefit of the counties of New York ana
westchester and OF its numerous employees.
TO WHAT 1T IS ASCRIBED
The corporation In ordinary circumstances. the
bill Of complaint alleges. would yield an in
come more than sufficient TO provide for the ex-
penses OF the corporation and pay the interest
on its bonds. The present financial condition OF
the road is ascribed to the expenses of the
change Of motive power. II was expected that
Continued seventh page.