The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-01
Intimation by Russell Sage That In
yestors i'm the Roads Securities
Have Been Robbed.
LovEJOY'S REPLY TO FRICK
ANSWER TO THE COMPLAINT
AGAINST THE CARNEGIE co.
Result of the Sale of the Erie Tele-
phone Company's System-Bankers
Buying Government Bonds.

NEW YORK, Feb. 2s.-Ex-Mayor Hugh
J. Grant was to-day appointed receiver of
the Third-avenue Railroad Company by
Judge Lacombe, in the United States Cir
cult Court. All interests concerned which
appeared, including the holders Of s6,O0O.0OO
in liens, agreed on Mr.. Grant. A day will
be fixed by Judge Lacombe about two
weeks hence when all other persons inter-
ested may be heard and Mr.. Grant will
then be appointed as permanent receiver
The bill Of complaint which was filed by
the Old Colony Trust Company, states
that the Third-avenue Railroad Company
which was incorporated in New York on
Oct. 6, 1853, owns many surface railroad
lines, that the expenses Of recent exten-
sions and improvements now aggregate
the sum of $2l. 900. and that the corpor-
alton is unable to pay this debt; also that
many creditors are pressing for payment,
and the Old Colony Trust Company be-
lieves they will bring suits and levy ex-
ecutions on the rolling stock and materials
Of the company.
The bill also states that a large part of
the floating debt consists of loans made
by various banks. trust companies and
individuals, many Of which are wholly un-
secured and others secured by deposits of
various stocks and bonds as collateral Sc
curity. 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 at prices below
their real value and the conpany's sys-
tenn would be dismembered and its valua-
BILE easements, franchises and contracts,
including it's mail contract with the gov
ernment, would be lost.
The corporation under ordinary circum-
stances, the bill of complaint alleges, would
yield an income of more than sufficient
to provide for the expenses of the corpora
ton and pay the interest on its bonds
The present financial condition of the road
is due to the expenses of the change Of
motive power. The answer Of the Third
avenue Company admits all the allegations
contained in the bill of complaint and joins
in the prayer for the appointment of Mr.
Grant as temporary receiver of the road
Previous to the court proceedings the
second syndicate which had sought to put
the road on it's feet announced that 1t had
abandoned the attempt
Inc announced OPINION Ol tHOSe III Chdl &c
of Kuhn, Loeb & Co., to the effect that
so per cent was the intrinsic value Of the
stock, without allowing for improvements
or reorganization, prevented the break
which would inevitably have followed the
withdrawal of the syndicate.
Russell Sage was quoted as saying to-
day that he was one of the largest credi-
tors of the Third-avenue company for
money loaned. He was asked by commit
tee to use his influence to prevent a re-
.ceivership, but refused because as a credi-
tor he preferred to take his chances with
the courts. He said he had heard many
reasons assigned for the roads financial
ruin If 1t were true that there had been
plundering he hoped there would be full
investigation and the guilty ones punished
He said that great responsibility rested
on somebody and that those who lost their
savings had a right to know the facts.