The sun. [volume] (New York [N.Y.]) 1833-1916, 1900-02-04
JOHN +. CARROLL RECEIVER
sNO. 1HLNK YOU." SAY THE WARE
HOUSE TRUST BO>DHOL OARS.

John Hnu IIuo w sWehr INV !"
To the surprise OF the lawyers In the case.
Justics Fitzgerald Of the supreme Court at
II 80 o'clock yesterday morning appointed
John r.. Carroll, deputy-leader for Richard
Croker Of Tammany Hall. to be receiver OF all
the assets OF the Brooklyn Wharf and Ware
house Company IN proceedings to ~ioreclose the
sl7.5OO.O00 mortgage. This was the latest
receivership since Hugh J. Grant was named
receiver Of the ST. Nicholas Bank. But, alas. for
the Hon. John At exactly noon the action In
which he was appointed was discontinued on
consent OF all the attorneys. because he had
been selected and the receiver was discharged.
He was receiver in name Just long enough for
the lawyers In the case TO be notified who had
been appointed and to get before Justice
fitzgerald and ask for an order OF discontinue
snce. They had to be quick about II. and they
knew It, for II Carroll could have got do wntnwn
soon enough to give the 100000 bond re-
quired in the order OF the Judge appointing
him II would have cost a nice penny to get him
cut.
'Clicke rty-clink. clink-comerty-quick." rang
the telephone at the Democratic Club while
the Ink was still moist ON the signature OF the
Judge on the order appointing the receiver.
The ring was so violent hat a sleepy attendant
fell Of a chair. for he had heard that phone 60
into such an attack Of hysteria before.
Carroll there'" and ringIn g filed his ear.
when he struck the phone In fear and
trembling.
There was no question OF "who are your"
The answer was that Carroll was not there.
but that the operator would catch him on the
phone. He rang several numbers which
sounded like John l. John 2 and John 3.
A lot Of buzzing followed. and soon a phone
Of the United States Fidelity and Guaranty
Company was busy with: rs Andy there2
Tell Andy TO COM to the phone. quick"
There was some conversation that sounded
like "A great thing. Bond Of only 100000.
Capital 12.500.0O0. A great cinch. Will you
70 III" Sure! any amount"
1t was said that Carroll and a representative
Of the Guaranty Company got to the Court
House at 1901 o'clock. and heard in the
County Clerks Office that the whole thing
was of.
The order appointing the receiver was OBJ
tanned in an action brought by the United
States Mortgage and Trust Company as trus.
tee Of the $l7. 50O.O00 mortgage. The suit was
brought on the ground that the interest due on
Feb. l. amounting to $437.50O. had not been
paid. A spt cifc demand, on which the action
was based, was made for the payment on $3.50
COUPONS amounting to sS1.250. By the terms
OF the MORTGAGE the MORTGAGE had the right
70 enter upon the mortgaSed premises and
take possession without suit. To protect prop
srty. such as accounts and things acquired
since the execution OF the mortgage from other
creditors than the bondholders. Il was decided
20 have a receiver appointed who could assume
charge OF all the property. The order signed re-
strained all actions against the company pend.
the receivership.
Julien T. Davies and Adrian II. Joline APP
peared for the mortgage and the individual
bondholders and John NJ. Bowers Tor the In
solvent company. The counsel had got their
heads together before presenting the order for
a receivership TO Justice Fitzgerald and. be-
coming convinced that a receive-ship was a
good course. consented 10 the entry Of an order
appointing a receiver. None OF the lawyars
would sreak yeste rday OF their rapid change Of
mind. They had asked Justice Fitzgerald TO
apJoint ex-Mayor Hugh J. Grant receiver. II
is customary for the Judges to name the re-
celver suggested when all sides consent to his
appointment. but the custom is not invariable.
One exception wa the appointment OF Mr.,
Grant a. the receiver Of the st. Nicholas Bank.
when all sides sug that an officer OF the
bank be appointed. As a receiver Is an arm
VI ttt NOuIls anu NiIv NOull u lIol any re- DDlSl-
Die for its appointee. some care is usually ex.r-
cised before a receiver is appointed for a large
concern, unless the man named ia already well
known 10 the court. Carroll mad not been sug-
gesied by the attorneys.
The sudden appearance OF all the ATTORNEYS
for the parties Interested. after the appoint
ment OF CARROLL. was d great surprise at the
County Court House. 1t was generally sun
admit it.. that the APPOINTMENT was unsatis-
factory. hut the order had been signed and
there was no way o. getting Carroll out and
Il could be shown that Carroll was not At. in
the legal meaning Of the word a difficult mat
teri 70 present. They therefore hit on the ex-
meant taking chances that crei.ors would 70
after the unmortgag d a:se's he Judge had
no recourse but 10 sign The order Of di.contln.
the receiver had not dnal n"d,
just what the cup contained that was so sud.
denly withdraTn from n" lips ~ Tammany
would have been in IN control Of ths
you'll have had The naming O. many
Indefinite period. Tho company has twenty.
eight grain elevators and warehouses and
EnsiTStf s + r"n TIars h be%m 7 the S" Brook r wv m Bri Gtcis
Over all these the receiver would have held
sway as wei as over oil tho business and ac-
could be paid practically as he chose to pay
them. He would hav" the naming Of counsel
who would probably require large fees Tor the |
work o. so large a companv. He could aprly
70 the court for leave to carry on the BUSINESS
n he found II was better to do IN than to sell
out Immediately. and such Orders are usnallv |
granted. His own fees would be but a small
Item compared To- the amount NJ patronage he
would control. Under the laws ~ 81 r re-
ceiver has large fees fixed but II Ia nrovi 'od
that he cannot have more than $4,000 wear
for his fees where the estate Is so large that
the regular schedule Of fees would exceed this
sum.
This statement IL made on behalf o. those
who mae the aprlication for a rnceivershin:
THE United States NortgaoA and Trust
COMPANY. hsing the trustee Tor the first mort
gaze fondholders. instituted It's action 10 fore
close the mortgage md conferred with tho on
GERS OF the Prootlyn Wharf and Warehouse
AFFAIRS In the hands " q receiver. on motion cf !
the trusfee. This resulted In a rop r. nv the
Executive Committee ~ the Rrooklyn Wharf
and Warehouse Contrary that Is affairs were
In such n condition that N W : wise and proper |
to consent 10 the appointment nj such receiver
and permit him To manage the prnrerty
until a reorganization cnul' 10 had, and the
strue'ed it's counsel. Ne5srs. Bowers & Sands,
70 join IN the application FOR the arroint-
ment Of. q proper person ~ receiver. '
A First MORTGAGE BOnhhOlierS' Committee +
was in immediately formed. consisting a. repre-
sentatives from tn" Central Trust Company Of
New York. the Mutual Ii'e Insurance Com
pany ~ Now lort and the Guarnn'no Trust
Com panv o. View York. and $4,000 900 al bonds
were immediatolv dero.,t~d. Then tho T'niteI
Sta'es Mortgage ard Trust COMPANY instl- :
tufed Us action Of foreclosure AMI asked for
&he appointment ~ receiver. and NJ Julian
]. Davies 81 Me-srS Davies. Stone 4 ,ror-
bach. made an eS rar'a apU'icatiOn on Friday
a. Aton .FAW I F-. III. /